Disclosed in the latest SEC filing, a significant insider purchase on January 3, involves Richard C Zoretic, Director at Molina Healthcare MOH.
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Zoretic increased their investment in Molina Healthcare by purchasing 152 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $54,919.
As of Wednesday morning, Molina Healthcare shares are down by 0.0%, currently priced at $371.53.
Get to Know Molina Healthcare Better
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). In addition to its Health Plans segment, Molina has a Medicaid,Medicare, and Marketplace segment that represent the government-funded or sponsored programs under their management information systems. Molina's Medicaid plans receive revenue on a per-member per-month basis from state government agencies, and its Medicare Advantage plans receive revenue from managed care plans that contract with the Centers for Medicaid and Medicare (CMS). Molina also provides plans through health insurance exchanges.
Financial Milestones: Molina Healthcare's Journey
Revenue Growth: Molina Healthcare's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 7.83%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Insights into Profitability:
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Gross Margin: With a low gross margin of 12.47%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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Earnings per Share (EPS): Molina Healthcare's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 4.24.
Debt Management: Molina Healthcare's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.61, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: The P/E ratio of 23.15 is lower than the industry average, implying a discounted valuation for Molina Healthcare's stock.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.65 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 9.34, 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
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes Worth Your Attention
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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