Molina Healthcare Stock (NYSE:MOH), Trade Ideas

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.

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Florida announces Medicaid contract awards to Centene, Elevance Health, and Humana, sidelining UnitedHealth, CVS Health, and Molina. Details on MMA and LTC services for over 3.4 million Floridians enrolled.

See How Florida&#39;s Much Awaited Medicaid Re-Procurement Awards Impact Centene, Humana, Molina

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U.S. stock futures were higher this morning, with the Dow futures gaining over 200 points on Monday.

Marinus Pharmaceuticals, Neumora Therapeutics And Other Big Stocks Moving Lower In Monday&#39;s Pre-Market Session

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Shares of Molina Healthcare Inc (NYSE: MOH) added over 5% last month and showed signs of being overbought.

Molina Healthcare&#39;s Downgrade Tied To Potential Trump Presidency, Margin Challenges

Molina Healthcare Inc

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In the last three months, 11 analysts have published ratings on Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>), offering a diverse range of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $425.18, a high estimate of $460.00, and a low estimate of $390.00. Marking an increase of 3.16%, the current average surpasses the previous average price target of $412.17. 
<img src="https://www.benzinga.com/files/images/story/2024/1714071649_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
A clear picture of Molina Healthcare's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$430.00</td>
<td>$437.00</td>
</tr>
<tr>
<td>Scott Fidel</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$390.00</td>
<td>-</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$410.00</td>
<td>$440.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$406.00</td>
<td>-</td>
</tr>
<tr>
<td>Kevin Fischbeck</td>
<td>B of A Securities</td>
<td>Announces</td>
<td>Underperform</td>
<td>$439.00</td>
<td>-</td>
</tr>
<tr>
<td>Kevin Fischbeck</td>
<td>B of A Securities</td>
<td>Announces</td>
<td>Underperform</td>
<td>$439.00</td>
<td>-</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$440.00</td>
<td>$420.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$437.00</td>
<td>-</td>
</tr>
<tr>
<td>David Macdonald</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$460.00</td>
<td>$435.00</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$420.00</td>
<td>$367.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Raises</td>
<td>Overweight</td>
<td>$406.00</td>
<td>$374.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Molina Healthcare. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Molina Healthcare compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Molina Healthcare's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Molina Healthcare's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/MOH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Molina Healthcare analyst ratings.</a>
<h2>All You Need to Know About Molina Healthcare</h2>
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.
<h3>Key Indicators: Molina Healthcare's Financial Health</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Molina Healthcare showcased positive performance, achieving a revenue growth rate of 10.03% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.
Net Margin: Molina Healthcare's net margin is impressive, surpassing industry averages. With a net margin of 2.39%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Molina Healthcare's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.34% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Molina Healthcare's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.45% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Molina Healthcare's debt-to-equity ratio surpasses industry norms, standing at 0.57. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>What Are Analyst Ratings?</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Molina Healthcare Stock: A Deep Dive Into Analyst Perspectives (11 Ratings)

Barclays analyst Andrew Mok maintains Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) with a Equal-Weight and lowers the price target from $437 to $430.

Price Target

Barclays Maintains Equal-Weight on Molina Healthcare, Lowers Price Target to $430

Stephens &amp; Co. analyst Scott Fidel reiterates Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) with a Equal-Weight and maintains $390 price target.

Reiteration

Stephens & Co. Reiterates Equal-Weight on Molina Healthcare, Maintains $390 Price Target

Guidance

Molina Healthcare Reaffirms Full Year 2024 Guidance, Sees Adj. EPS $23.50+ vs $23.56 Est.

Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) reported quarterly earnings of $5.73 per share which beat the analyst consensus estimate of $5.59 by 2.5 percent. This is a 1.38 percent decrease over earnings of $5.81 per share from the same period last year. The company reported quarterly sales of $9.93 billion which beat the analyst consensus estimate of $9.44 billion by 5.20 percent. This is a 21.87 percent increase over sales of $8.15 billion the same period last year.

Earnings

Earnings Beats

Molina Healthcare Q1 EPS $5.73 Beats $5.59 Estimate, Sales $9.93B Beat $9.44B Estimate

Friday, the Agency for Health Care Administration&nbsp;<a target="_blank" href="https://vendor.myfloridamarketplace.com/search/bids/detail/8624" rel="noreferrer noopener">announced</a>&nbsp;contracts to five health plans due for the re-procurement of the Statewide Medicaid Managed Care (SMMC) program.&nbsp;
Florida has finally announced its long-awaited Medicaid contract awards, keeping&nbsp;Centene Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>),&nbsp;Elevance Health Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), and&nbsp;Humana Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>) as the only providers in each state region.&nbsp;
Stephens&nbsp;noted that Centene and Elevance Health re-procured specialty contracts (MMASC) while Centene also retained its child welfare (MMACC) contract.
This decision sidelines&nbsp;UnitedHealth Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>),&nbsp;CVS&nbsp;Health Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>), and&nbsp;Molina Healthcare Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) from the state&#8217;s Medicaid market. Centene stands to benefit the most, maintaining its dominant position.&nbsp;
The contract spans six years and is slated to commence in October.
Florida law mandates that SMMC health plans be re-procured every six years; this was the second re-procurement.&nbsp;
Through a regular, established competitive procurement process, the Agency negotiated and selected health plans to provide Managed Medical Assistance (MMA) and Long-term Care (LTC) services to the more than 3.4 million Florida people enrolled in the SMMC program.
Stephens adds that the results suggest the best possible outcome in Centene&#8217;s expected scenario of member loss.&nbsp;
They recommend increasing the company&#8217;s overall share of Florida Medicaid. Additionally, the analyst anticipates Elevance Health and Humana will increase their membership by approximately 28% and 26%, respectively.
Oppenheimer&nbsp;writes that this outcome is ideal for Centene as it maintains its market share, exceeding expectations of substantial losses despite its high market presence.
Oppenheimer notes that Humana was a large beneficiary with around 147k members.
CVS Health, UnitedHealth, and Molina missed out, possibly prompting protests that could delay the implementation start date until January 1, 2025.&nbsp;
Overall, the market will likely view the re-procurement as a major success for CNC, which should boost its stock, particularly considering recent letdowns in smaller re-procurements.
Price Action: CNC shares are up 3.23% at $73.02, and MOH shares are down 4.65% at $359.07 on the last check Monday.
Photo via Shutterstock

See How Florida's Much Awaited Medicaid Re-Procurement Awards Impact Centene, Humana, Molina

WIIM

Molina Healthcare shares are trading lower after Florida announced Statewide Medicaid Managed Care Program awards, which the company was reportedly left out of.

U.S. stock futures were higher this morning, with the Dow futures gaining over 200 points on Monday.
Shares of Marinus Pharmaceuticals, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrns#NASDAQ">MRNS</a>) fell sharply in today&rsquo;s pre-market trading after the company issued an update on the Phase 3 RAISE Trial and reported preliminary first <a href="https://www.benzinga.com/quote/MRNS">quarter 2024 financial results</a>.
Marinus Pharma reported Prelim ZTALMY (Ganaxolone) net product revenue of $7.4 million to $7.6 million for the first quarter.
Marinus Pharmaceuticals shares dipped 74.2% to $1.94in pre-market trading.
Here are some big stocks recording losses in today&rsquo;s pre-market trading session.
<ul>
<li>Neumora Therapeutics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nmra#NASDAQ">NMRA</a>) shares declined 17.1% to $11.25 pre-market trading after the FDA placed a clinical hold on the company&#39;s Phase 1 NMRA-266 study.</li>
<li>Roadzen, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdzn#NASDAQ">RDZN</a>) shares fell 14% to $5.04 in pre-market trading.</li>
<li>Ultragenyx Pharmaceutical Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rare#NASDAQ">RARE</a>) shares fell 11.4% to $41.64 in pre-market trading after the company disclosed interim Phase 1/2 data in patients with angelman syndrome after treatment with GTX-102.</li>
<li>Cogent Biosciences, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cogt#NASDAQ">COGT</a>) shares declined 7.7% to $6.01 in pre-market trading. Cogent Biosciences recently reported preclinical data from CNS-Penetrant ErbB2 Inhibitor Program.</li>
<li>Polestar Automotive Holding UK PLC (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/psny#NASDAQ">PSNY</a>) shares fell 7.2% to $1.35 in pre-market trading.</li>
<li>Molina Healthcare, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/moh#NYSE">MOH</a>) shares fell 7.1% to $350.00 in pre-market trading.</li>
<li>TORM plc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/trmd#NASDAQ">TRMD</a>) shares slipped 3.1% to $32.92 in pre-market trading.</li>
</ul>
&nbsp;
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Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a>

Marinus Pharmaceuticals, Neumora Therapeutics And Other Big Stocks Moving Lower In Monday's Pre-Market Session

Wells Fargo analyst Stephen Baxter maintains Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) with a Equal-Weight and lowers the price target from $440 to $410.

Wells Fargo Maintains Equal-Weight on Molina Healthcare, Lowers Price Target to $410

The Michigan Department of Health and Human Services (MDHHS) intends to award a Comprehensive Health Care Program contract to Molina&#39;s health plan subsidiary, Molina Healthcare of Michigan. Molina confirmed it was awarded the contract in six service regions.The go-live date for Molina Healthcare of Michigan&#39;s new Medicaid contract is expected to be October 1, 2024.&nbsp;

Contracts

Molina Healthcare Bags Michigan Medicaid Contract; Financial Terms Not Disclosed

Molina Healthcare's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) short percent of float has risen 10.76% since its last report. The company recently reported that it has 1.43 million shares sold short, which is 2.78% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.45 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Molina Healthcare Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712861111_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Molina Healthcare has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Molina Healthcare's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Molina Healthcare's peer group average for short interest as a percentage of float is 4.21%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

(MOH) - Analyzing Molina Healthcare's Short Interest

Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) has outperformed the market over the past 5 years by 13.31% on an annualized basis producing an average annual return of 25.39%. Currently, Molina Healthcare has a market capitalization of $22.29 billion. 
Buying $100 In MOH: If an investor had bought $100 of MOH stock 5 years ago, it would be worth $286.70 today based on a price of $380.49 for MOH at the time of writing.
<h3>Molina Healthcare's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712764819_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $100 In This Stock 5 Years Ago, You Would Have $300 Today

Cantor Fitzgerald analyst Sarah James reiterates Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) with a Overweight and maintains $406 price target.

Cantor Fitzgerald Reiterates Overweight on Molina Healthcare, Maintains $406 Price Target

Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) has outperformed the market over the past 20 years by 7.73% on an annualized basis producing an average annual return of 15.54%. Currently, Molina Healthcare has a market capitalization of $22.86 billion. 
Buying $100 In MOH: If an investor had bought $100 of MOH stock 20 years ago, it would be worth $1,815.24 today based on a price of $390.20 for MOH at the time of writing.
<h3>Molina Healthcare's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712068231_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In This Stock 20 Years Ago Would Be Worth $1,800 Today

Shares of healthcare providers are trading lower after the CMS finalized payment updates for the 2025 Medicare Advantage and Medicare Part D programs.

Shares of several healthcare providers are trading lower after the CMS finalized payment updates for the 2025 Medicare Advantage and Medicare Part D programs.

CMS Says Under 2025 Rate Announcement, Payments From Gov. To MA Plans Are Expected To Increase On Average By 3.70%, From 2024; Federal Government Is Projected To Pay Between $500B-$600B In Medicare Advantage Payments To Private Health Plans In 2025

<a href="https://www.cms.gov/newsroom/press-releases/cms-finalizes-payment-updates-2025-medicare-advantage-and-medicare-part-d-programs" title="https://www.cms.gov/newsroom/press-releases/cms-finalizes-payment-updates-2025-medicare-advantage-and-medicare-part-d-programs">https://www.cms.gov/newsroom/press-releases/cms-finalizes-payment-updates-2025-medicare-advantage-and-medicare-part-d-programs</a>

CMS Finalizes Payment Updates For 2025 Medicare Advantage And Medicare Part D Programs

Shares of Molina Healthcare Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/moh#NYSE">MOH</a>) added over 5% last month and showed <a href="https://www.benzinga.com/news/24/03/37699843/top-3-health-care-stocks-that-are-ticking-portfolio-bombs">signs of being overbought</a>.
The company is poised to witness rate pressure in 2025, following a period of elevated margins, according to BofA Securities.
The Molina Healthcare Analyst: Kevin Fischbeck downgraded the rating for Molina Healthcare from Neutral to Underperform, while keeping the price target unchanged at $439.
The Molina Healthcare Thesis: Medicaid-related insurers are likely to witness margin pressure on &ldquo;large portions of their membership,&rdquo; Fischbeck said in the downgrade note.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
&ldquo;Once redeterminations conclude and enrollment stabilizes, we would expect states to adjust rates down such that insurers are earning more normalized margins, potentially pressuring 2025 margins,&rdquo; the analyst wrote. Following 12 to 15 months of high activity for large Medicaid re-procurements, the RFP pipeline could slow, limiting catalysts, he added.
&ldquo;Trump presidency would likely weigh on enrollment/sentiment,&rdquo; Fischbeck stated. He further said that Molina Healthcare&rsquo;s stock is currently trading at parity with UnitedHealth Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>), versus at a 22% discount average over the past five years.
MOH Price Action: Shares of Molina Healthcare had declined by 0.78% to $407.17 at the time of publication on Monday.
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Molina Healthcare's Downgrade Tied To Potential Trump Presidency, Margin Challenges

B of A Securities analyst Kevin Fischbeck downgrades Molina Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) from Neutral to Underperform and announces $439 price target.

B of A Securities Downgrades Molina Healthcare to Underperform, Announces $439 Price Target

Leading healthcare company UnitedHealth Group (UNH) is poised to release its first-quarter financial results on April 16, 2024. Despite UNH's recent cyber-attack misery, its acquisition of Stewardship Health signals expansion. So, should investors Buy or Wait? Keep reading to know more… Multifaceted healthcare company UnitedHealth Group Incorporated (<a href="https://stocknews.com/stock/UNH/">UNH</a>) is scheduled to release its first quarter 2023 financial results on April 16, 2024. Wall Street expects the company to report an EPS of $6.62 for the quarter, indicating a 5.8% year-over-year improvement. Its revenue for the quarter is expected to increase 8% year-over-year to $99.30 billion.
Given the promising analysts' estimates, the company is anticipated to deliver strong results. Hence, the stock might present a solid buying opportunity at present. Let's delve into further compelling reasons to consider purchasing the stock now.
As of December 31, 2023, UNH's business catered to 52.75 million individuals, marking a 2% year-over-year increase. This positive trend was mainly driven by the expansion of membership in the company's domestic commercial and Medicare Advantage sectors.
In February, UNH's Change Healthcare division fell <a href="https://www.nytimes.com/2024/02/26/health/cyberattack-prescriptions-united-healthcare.html">victim to a cyberattack</a> and is currently in the process of recovery. The attack severely disrupted healthcare operations, impacting claims processing and payments. In response, both UNH and the federal government stepped in to offer temporary assistance to affected care providers. Notably, UNH has boosted its advance payments to financially strained healthcare providers, <a href="https://www.reuters.com/technology/cybersecurity/unitedhealth-says-several-services-handling-medical-claims-unit-change-will-go-2024-03-22/">now exceeding $2.50 billion</a>, a notable increase from the initially disclosed $2 billion.
On the bright side, it was reported that Steward Health Care, facing challenges, had decided to sell its physician network, Stewardship Health, to UNH. The acquisition by UNH's Optum Care includes primary care providers and clinicians across eight states and all of Stewardship's stock. The acquisition could provide UNH with a competitive advantage by offering a broader range of healthcare services and capturing a larger market share.
Shares of UNH fell marginally intraday to close the last trading session at $439.20.
Here are the fundamental aspects of UNH that could influence its performance in the near term:
Solid Financials 
UNH's total revenues for the fiscal fourth quarter that ended December 31, 2023, increased 14.1% year-over-year to $94.42 billion. Its earnings from operations rose 11.6% year-over-year to $7.69 billion. Adjusted net earnings attributable to UNH common shareholders and adjusted EPS stood at $5.76 billion and $6.16, up 13.8% and 15.4% from the prior-year quarter, respectively.
As of December 31, 2023, its total current assets stood at $78.44 billion, compared to $69.07 billion as of December 31, 2022.
Stable Dividend Policy
On March 19, UNH paid a quarterly <a href="https://www.investopedia.com/terms/c/cashdividend.asp">cash dividend</a> of $1.88 per share to common stockholders. It has consistently delivered dividends for 21 years, showcasing its strong shareholder payback track record.
The company's annualized dividend rate of $7.52 per share translates to a dividend yield of 1.71% on the current market price, higher than its four-year average yield of 1.32%. UNH's dividend payments have grown at CAGRs of 14.6% and 15.9% over the past three and five years, respectively.
Impressive Historical Growth
Over the past three years, UNH's revenue and EBITDA increased at a CAGR of 13.1% and 12.8%, respectively. Its net income and EPS grew at respective CAGRs of 13.3% and 14.2% over the same period.
Favorable Analyst Estimates
Street expects UNH's EPS and revenue to rise 9.6% and 7.7% year-over-year to $27.54 and $400.32 billion in the fiscal year 2024. Moreover, the company has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
Discounted Valuation
In terms of trailing-12-month EV/Sales, UNH is trading at 1.14x, 67.1% lower than the industry average of 3.47x. Its trailing-12-month P/S of 1.01x is 71.8% lower than the 3.58x industry average. Moreover, UNH's trailing-12-month non-GAAP P/E multiple of 15.95 is 15.6% lower than the 18.90 industry average.
Higher-Than-Industry Profitability
UNH's trailing-12-month EBIT margin of 8.71% is 993.1% higher than the industry average of 0.80%. The stock's trailing-12-month levered FCF margin of 5.33% is 718.2% higher than the 0.65% industry average. Furthermore, its trailing-12-month asset turnover ratio of 1.43x is 260.9% higher than the industry average of 0.40x.
POWR Ratings Show Promise
UNH's robust fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. UNH has a B grade for Stability, consistent with its 24-month beta of 0.35.
UNH is ranked #5 in the 11-stock <a href="https://stocknews.com/category/health-insurance/">Medical – Health Insurance</a> industry. The industry is B-rated.
Click <a href="https://stocknews.com/stock/UNH/">here</a> to access UNH's Growth, Value, Momentum, Quality, and Sentiment ratings.
Bottom Line
Despite UNH's rising costs incurred from the recent cyber-attack, anticipated first-quarter results are expected to showcase the benefits of increased premiums driven by a growing membership base. This surge is mainly attributed to higher premiums across both Optum Health and its health benefits divisions.
Moreover, the acquisition of Stewardship Health by UNH's Optum Care expands its services and market reach.
Backed by its robust financial performance, strong profitability, and stable beta, UNH could be an ideal investment. With anticipation building for the upcoming first-quarter earnings release, the stock appears to be a solid choice.
How Does UnitedHealth Group Incorporated (UNH) Stack up Against Its Peers?
While UNH has an overall grade of B, equating to a Buy rating, you may also check out these other A and B-rated stocks within the <a href="https://stocknews.com/category/health-insurance/">Medical – Health Insurance</a> industry: Cigna Corp. (<a href="https://stocknews.com/stock/CI/">CI</a>), Elevance Health, Inc. (<a href="https://stocknews.com/stock/ELV/">ELV</a>), and Molina Healthcare, Inc. (<a href="https://stocknews.com/stock/MOH/">MOH</a>).
For exploring more A and B-rated Medical – Health Insurance stocks, click <a href="https://stocknews.com/category/health-insurance/">here</a>.
What To Do Next?
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<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>
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UNH shares were trading at $446.91 per share on Monday morning, up $7.71 (+1.76%). Year-to-date, UNH has declined -14.78%, versus a 7.98% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Kritika Sarmah</h2> <img src='https:/wp-content/uploads/2022/08/Kritika-Sarmah_Image-3.jpg' style="float:left; padding:5px;width:125px;">Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.<a href="https://stocknews.com/authors/?author=kritika-sarmah">More...</a>The post <a href=https://stocknews.com/news/unh-ci-elv-moh-unitedhealth-unh-earnings-await-should-investors-buy-or-wait/>UnitedHealth (UNH) Earnings Await -Should Investors Buy or Wait?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

UnitedHealth (UNH) Earnings Await -Should Investors Buy or Wait?

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Molina Healthcare (NYSE:<a href="https://investorplace.com/stock-quotes/moh-stock-quote/">MOH</a>) just reported results for the first quarter of 2024.<ul><li>Molina Healthcare reported earnings per share of $5.73. This was above the analyst estimate for EPS of $5.59.</li><li>The company reported revenue of $9.93 billion.</li><li>This was 5.20% better than the analyst estimate for revenue of $9.44 billion.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
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