Insider Confidence On Display: Dale B Wolf Acquires $54K In Molina Healthcare Stock

Dale B Wolf, Director at Molina Healthcare (NYSE:MOH), disclosed an insider purchase on October 3, based on a new SEC filing.

What Happened: Wolf's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, involves purchasing 285 shares of Molina Healthcare. The total transaction value is $54,945.

In the Friday's morning session, Molina Healthcare's shares are currently trading at $201.56, experiencing a up of 3.76%.

About Molina Healthcare

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.

Breaking Down Molina Healthcare's Financial Performance

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. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• Gross Margin: With a low gross margin of 10.21%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Molina Healthcare's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 4.75.

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.

Evaluating Valuation:

• 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): With a lower-than-industry-average EV/EBITDA ratio of 2.85, Molina Healthcare presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Delving Into the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes 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.