Molina Healthcare, Inc. (MOH), headquartered in Long Beach, California, provides managed health care services to low-income households and individuals through the Medicaid and Medicare programs and state insurance markets. The company, valued at $16.9 billion, offers health plans in California, Washington, Utah and Michigan, as well as primary care clinics in Northern and Southern California.
Companies with a market capitalization of $10 billion or more are generally referred to as “large-cap stocks,” and MOH fits that description, with its market capitalization exceeding this level and the company's size in the healthcare plan industry. , influence, and superiority. MOH's main strength lies in its strong membership growth, particularly in the Medicaid sector, through new contract wins and expansion in key states.
Despite the notable strength, MOH is down 30.4% from its 52-week high of $423.92 achieved on March 27th. Over the past three months, MOH stock has fallen 14.8%, lagging the Healthcare Select Sector SPDR Fund (XLV)'s 9.6%. losses within the same period.
Over the long term, MOH stock has declined 4.5% over the past six months, outpacing XLV's six-month decline of 5.3%. However, MOH stock is down 17.6% over the past 52 weeks, lagging XLV's return of 3.2% over the last year.
Confirming the bearish trend, MOH has been trading below its 50-day moving average with slight fluctuations since early October. The stock has been trading below its 200-day moving average since late April, with some fluctuations.
On October 23, MOH announced its third quarter financial results, and the company's stock price closed up more than 17% in the subsequent trading session. Adjusted EPS was $6.01, beating Wall Street expectations of $5.96. The company's revenue was $10.3 billion, beating Wall Street expectations of $10 billion. MOH expects full-year adjusted EPS of $23.50.
Shares of MOH rival Centene Corporation (CNC) have been a laggard, declining 10.6% in the past six months. However, CNC is leading the stock market and has fallen 17.1% over the past 52 weeks.
Wall Street analysts are somewhat bullish on the Health Department's outlook. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering it, and the average price target of $362.43 suggests a potential upside of 22.8% from current price levels.
On the date of publication, Neha Panjwani did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here. More news from Barchart
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