Molina Healthcare’s stock price target has been reduced from $180.00 to $144.00 by analysts at Cantor Fitzgerald, as detailed in a research note released to investors on Monday. The brokerage maintains a “neutral” rating on the stock, which suggests a potential upside of approximately 9.27% from Molina’s last closing price.
Other analysts have also adjusted their evaluations of the company recently. For instance, on January 6, Sanford C. Bernstein reaffirmed an “outperform” rating, setting a price target of $224.00. In contrast, UBS Group lowered its target from $180.00 to $170.00 on October 24, while Morgan Stanley also set a target price of $158.00 on the same day. The ratings landscape indicates mixed sentiments, with three analysts recommending a buy, nine suggesting a hold, and two advising a sell. According to data from MarketBeat.com, Molina Healthcare currently holds an average rating of “Hold” with a consensus target price of $180.07.
Recent Financial Performance
Molina Healthcare reported disappointing quarterly results on February 5, 2024. The company recorded a loss of $2.75 in earnings per share (EPS), falling short of analysts’ expectations of $0.43 per share by $3.18. Despite the earnings miss, Molina achieved revenues of $11.38 billion, surpassing estimates of $10.90 billion. This represents an 8.3% increase from the same quarter last year. The company registered a net margin of 1.04% and a return on equity of 13.60%. For the fiscal year 2026, Molina has set an EPS guidance of $5.00.
Insider Trading and Institutional Activity
In related news, Director Richard M. Schapiro sold 357 shares of Molina Healthcare on November 24, 2023, at an average price of $143.02. This transaction totaled $51,058.14 and reduced his ownership stake by 3.05%. Following the sale, Schapiro retains 11,352 shares valued at approximately $1,623,563.04. Corporate insiders currently own 1.26% of Molina’s stock.
On the institutional front, several firms have modified their positions in Molina Healthcare. Torren Management LLC acquired a new position in the fourth quarter, valued at about $26,000. Miller Global Investments LLC also bought a new position valued at $27,000. Additionally, Cromwell Holdings LLC increased its stake by 211.9%, now owning 184 shares worth $32,000 after acquiring an additional 125 shares last quarter. Notably, hedge funds and institutional investors control approximately 98.50% of Molina Healthcare’s stock.
About Molina Healthcare
Founded in the early 1980s, Molina Healthcare, Inc. operates as a managed care company focusing on government-sponsored health insurance programs. Its offerings include Medicaid managed care plans, Medicare Advantage, prescription drug plans, and individual Marketplace plans under the Affordable Care Act. The company aims to enhance health outcomes through an integrated care model that prioritizes preventive and primary care services, care coordination, and disease management.
As investors continue to assess Molina Healthcare’s performance and future prospects, the adjustments in price targets and ratings signal a landscape of cautious optimism amid mixed financial results.
