Director At Molina Healthcare Buys $54K of Stock

On October 3, a substantial insider purchase was made by Richard C Zoretic, Director at Molina Healthcare (NYSE:MOH), as per the latest SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Zoretic purchased 285 shares of Molina Healthcare, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $54,945.

The latest market snapshot at Friday morning reveals Molina Healthcare shares up by 3.76%, trading at $201.56.

Discovering Molina Healthcare: A Closer Look

Molina Healthcare Inc offers healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). It has four segments: Medicaid, Medicare, Marketplace and Others. The Medicaid, Medicare, and Marketplace segments represent the government-funded or sponsored programs under which it offers managed healthcare services. The Other segment, which is insignificant to its consolidated results of operations, includes long-term services and supports consultative services in Wisconsin. It generates majority revenue from Medicaid segment.

Molina Healthcare: Delving into Financials

Revenue Growth: Molina Healthcare's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 15.66%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 10.21%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 4.75, Molina Healthcare showcases strong earnings per share.

Debt Management: With a high debt-to-equity ratio of 0.77, Molina Healthcare faces challenges in effectively managing its debt levels, indicating potential financial strain.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 9.58 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.25 is lower than the industry average, implying a discounted valuation for Molina Healthcare's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 2.85, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Breaking Down the Significance of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Molina Healthcare's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.