Sohini Mondal
2 min read
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Valued at a market cap of $16 billion, Molina Healthcare, Inc. (MOH) is a provider of managed healthcare services under the Medicaid and Medicare programs, and through the state insurance marketplaces. Headquartered in Long Beach, California, the company operates in four segments: Medicaid, Medicare, Marketplace, and Other.
Companies worth $10 billion or more are generally labeled as “large-cap” stocks, and Molina Healthcare fits this criterion perfectly. The company focuses on underserved communities and operates health plans across multiple U.S. states. It emphasizes cost-effective and quality healthcare access to patients.
Molina Healthcare stock has dropped 19.1% from its 52-week high of $365.23. Shares of MOH have decreased 6.9% over the past three months, slightly underperforming the S&P 500 Index’s ($SPX) 6.5% increase.
In the long term, shares of Molina Healthcare have dipped 3.5% over the past 52 weeks, lagging behind the SPX's 9% return over the same time frame. Additionally, MOH stock has gained 1.5% on a YTD basis, whereas the SPX has risen 1.7%.
The stock has been trading below its 50-day and 200-day moving averages since late May.
Molina Healthcare stock fell 5.5% following Q1 2025 results on Apr. 23. The company reported revenue of $11.2 billion, marking an increase of 12.2% from the year-ago quarter, beating the Street forecasts. Meanwhile, its adjusted EPS came in at $6.08, up 6.1% year-over-year, surpassing the analysts’ estimate. However, the decline in stock was driven by rising medical costs, with the medical care ratio increasing to 89.2% due to higher-than-expected utilization in long-term care and behavioral health.
In contrast, Centene Corporation (CNC) has lagged behind MOH stock. Shares of CNC have declined nearly 9% on a YTD basis and 16.9% over the past 52 weeks.
Even though MOH has underperformed relative to SPX, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering it, and it is currently trading below the mean price target of $358.64.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
