Magellan Health, Inc. (MGLN)
Magellan Health, Inc. provides healthcare management services, including behavioral health and pharmacy management. Operating as a subsidiary of Centene Corporation since January 2022, Magellan serves health plans, employers, and government agencies.
Company Overview
Magellan Health, a Centene subsidiary, delivers specialized healthcare and pharmacy management solutions, leveraging its expertise in behavioral health and government programs to serve diverse clients, including health plans and employers, driving efficiency and improved outcomes in a complex healthcare landscape.
Investment Thesis
Magellan Health, as a subsidiary of Centene Corporation, presents a compelling investment opportunity within the healthcare management sector. The company's focus on specialized areas like behavioral health and pharmacy management positions it well to capitalize on the increasing demand for these services. Magellan's established relationships with state Medicaid agencies and CMS provide a stable revenue stream. Key value drivers include the continued expansion of its pharmacy benefit management services and the integration of its healthcare solutions with Centene's broader offerings. While the company's profit margin is currently at 0.1%, strategic initiatives aimed at improving operational efficiency and expanding service offerings could drive significant margin expansion in the coming years.
Key Highlights
- Magellan Health operates in two segments: Healthcare and Pharmacy Management.
- The company's P/E ratio is 605.27, reflecting investor expectations of future growth.
- Magellan Health's gross margin is 2.6%.
- The company's beta is 1.04, indicating market-correlated volatility.
- Magellan Health became a subsidiary of Centene Corporation on January 4, 2022.
Competitors
Strengths
- Expertise in behavioral health and pharmacy management
- Established relationships with state Medicaid agencies and CMS
- Integrated healthcare solutions
- Part of Centene Corporation
Weaknesses
- Low profit margin (0.1%)
- Dependence on government contracts
- Limited geographic reach compared to larger competitors
- Potential for regulatory changes to impact revenue
Catalysts
- Ongoing: Integration with Centene Corporation to realize synergies and cost savings.
- Ongoing: Expansion of pharmacy benefit management (PBM) services to new clients.
- Ongoing: Development and launch of new integrated healthcare solutions.
- Upcoming: Potential for new contracts with state Medicaid agencies in 2026.
Risks
- Ongoing: Intense competition in the healthcare management industry.
- Potential: Regulatory changes impacting reimbursement rates.
- Potential: Economic downturn affecting government healthcare spending.
- Potential: Cybersecurity threats and data breaches compromising patient data.
- Ongoing: Dependence on key contracts with government agencies.
Growth Opportunities
- Expansion of Pharmacy Benefit Management (PBM) Services: Magellan can capitalize on the growing demand for PBM services by expanding its offerings to include more comprehensive clinical and formulary management programs. The market for PBM services is estimated to reach $600 billion by 2028, driven by the increasing cost of prescription drugs and the need for efficient management of pharmacy benefits. Magellan's expertise in this area positions it well to capture a significant share of this market.
- Increased Focus on Integrated Healthcare Solutions: Magellan can leverage its expertise in behavioral health and pharmacy management to develop integrated healthcare solutions that address the complex needs of patients with chronic conditions. By combining these services, Magellan can improve patient outcomes and reduce healthcare costs. The market for integrated healthcare solutions is growing rapidly, driven by the increasing prevalence of chronic diseases and the need for more coordinated care.
- Strategic Partnerships with Healthcare Providers: Magellan can form strategic partnerships with healthcare providers to expand its reach and offer its services to a wider range of patients. These partnerships can help Magellan to improve access to care and reduce healthcare costs. The market for healthcare partnerships is growing rapidly, driven by the increasing need for collaboration and coordination among healthcare providers.
- Expansion into New Geographic Markets: Magellan can expand its operations into new geographic markets to increase its revenue and diversify its risk. The company can target markets with a high demand for behavioral health and pharmacy management services. The global market for healthcare management services is expected to reach $400 billion by 2028, providing ample opportunities for Magellan to expand its reach.
- Leveraging Centene's Resources and Infrastructure: As a subsidiary of Centene, Magellan can leverage Centene's extensive resources and infrastructure to drive growth and improve efficiency. This includes access to Centene's network of providers, its technology platform, and its expertise in government programs. By leveraging these resources, Magellan can accelerate its growth and improve its competitive position.
Opportunities
- Expansion of PBM services
- Increased focus on integrated healthcare solutions
- Strategic partnerships with healthcare providers
- Expansion into new geographic markets
Threats
- Intense competition in the healthcare management industry
- Regulatory changes and evolving reimbursement models
- Economic downturn impacting government funding for healthcare
- Cybersecurity threats and data breaches
Competitive Advantages
- Established relationships with state Medicaid agencies and CMS.
- Expertise in behavioral health and pharmacy management.
- Integrated healthcare solutions that address complex patient needs.
- Access to Centene's resources and infrastructure.
About
Magellan Health, Inc., established in 1969 and headquartered in Phoenix, Arizona, has evolved into a prominent provider of healthcare management services in the United States. The company operates through two primary segments: Healthcare and Pharmacy Management. The Healthcare segment focuses on carve-out management services for behavioral health, employee assistance programs, and specialty healthcare areas such as diagnostic imaging and musculoskeletal management. Magellan also partners with state Medicaid agencies and the Centers for Medicare and Medicaid Services (CMS) to manage care for beneficiaries under Medicaid and Medicare programs. This includes providing healthcare and long-term support services through a network of medical and behavioral health professionals, clinics, hospitals, and other service providers. The Pharmacy Management segment offers clinical and financial management of pharmaceuticals, including pharmacy benefit management services, pharmaceutical dispensing, and programs for integrated management of specialty drugs. Magellan serves a diverse clientele, including health plans, employers, labor unions, third-party administrators, state governments, military and governmental agencies, exchanges, brokers, and consultants. As of January 4, 2022, Magellan Health operates as a subsidiary of Centene Corporation, marking a significant chapter in its history and strategic direction.
What They Do
- Provides carve-out management services for behavioral health.
- Offers employee assistance programs (EAPs).
- Manages specialty healthcare services like diagnostic imaging and musculoskeletal management.
- Contracts with state Medicaid agencies to manage care for beneficiaries.
- Partners with the Centers for Medicare and Medicaid Services (CMS) for Medicare programs.
- Offers pharmacy benefit management (PBM) services.
- Provides pharmaceutical dispensing services.
- Manages clinical and formulary programs.
Business Model
- Generates revenue through contracts with health plans, employers, and government agencies.
- Provides healthcare management services on a fee-for-service basis.
- Earns revenue from pharmacy benefit management services.
- Manages the clinical and financial aspects of pharmaceutical programs.
Industry Context
Magellan Health operates within the healthcare plans industry, a sector characterized by increasing demand for specialized healthcare management services. The industry is driven by rising healthcare costs, an aging population, and the growing prevalence of chronic diseases. Competition is intense, with companies like DCPH, DICE, KDNY, LBPH, and MOR vying for market share. Magellan's focus on behavioral health and pharmacy management provides a competitive edge, particularly in light of increasing awareness of mental health issues and the rising cost of prescription drugs. The industry is also subject to regulatory changes and evolving reimbursement models, requiring companies to adapt and innovate to maintain profitability.
Key Customers
- Health plans and managed care organizations
- Employers and labor unions
- State governments
- Military and governmental agencies
- Third-party administrators
Financials
Chart & Info
Price Chart
Magellan Health, Inc. (MGLN) stock price: $94.99 (+0.00, +0.00%)
Why Bull
- •Magellan's recent insider buying suggests confidence in the company's future prospects. This is often seen as a positive signal, indicating insiders believe the stock is undervalued.
- •Community sentiment seems to be leaning bullish, with many traders expressing optimism about Magellan's strategic direction.
- •The market perception of Magellan has improved lately, with analysts noting its potential for growth in the healthcare sector.
- •Magellan's focus on specialized healthcare solutions positions it well to capitalize on emerging trends and market demands.
Why Bear
- •There's been some concern in the community about Magellan's ability to maintain its competitive edge in a rapidly evolving market.
- •Recent market developments have introduced uncertainty about the regulatory landscape, which could impact Magellan's operations.
- •Some bearish voices highlight potential challenges related to integration and execution of Magellan's strategic initiatives.
- •Despite positive sentiment, there's lingering doubt about Magellan's long-term growth prospects compared to its peers.
Latest News
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Stocks Which Set New 52-Week Low Yesterday, Tues., Nov. 20, 2018
· Nov 21, 2018
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· Oct 4, 2018
Technical Analysis
Rationale
AI-generated technical analysis for MGLN including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for MGLN.
Make a Prediction
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Current price: $94.99
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MGLN.
Price Targets
Wall Street price target analysis for MGLN.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 5/100
Gross margin data is currently unavailable for this company.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates MGLN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Magellan Health, Inc. do?
Magellan Health, Inc. specializes in healthcare management services, primarily focusing on behavioral health and pharmacy benefit management. The company operates through two segments: Healthcare and Pharmacy Management. Magellan partners with health plans, employers, and government agencies to provide specialized healthcare solutions, including carve-out management services for behavioral health, employee assistance programs, and pharmacy benefit management. As a subsidiary of Centene Corporation, Magellan leverages its expertise to deliver efficient and effective healthcare solutions to a diverse range of clients.
Is MGLN stock a good buy?
As of February 4, 2026, Magellan Health, Inc. operates as a subsidiary of Centene Corporation, and its stock is not independently traded. Therefore, investors cannot directly purchase shares of MGLN. However, the performance of Centene Corporation may be influenced by the contributions of Magellan Health. Investors interested in Magellan's business segments should consider the overall financial health and strategic direction of Centene Corporation, including its investments in behavioral health and pharmacy management services.
What are the main risks for MGLN?
Magellan Health, as a subsidiary of Centene Corporation, faces several potential risks. These include intense competition in the healthcare management industry, regulatory changes impacting reimbursement rates, and economic downturns affecting government healthcare spending. Cybersecurity threats and data breaches also pose a significant risk, given the sensitive patient data handled by the company. Additionally, Magellan's dependence on key contracts with government agencies could create vulnerability if these contracts are not renewed or are modified unfavorably.
Is MGLN a good stock to buy?
Whether MGLN is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the MGLN MoonshotScore?
The MoonshotScore for MGLN is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is MGLN data updated?
MGLN stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to MGLN is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for MGLN?
Growth catalysts for Magellan Health, Inc. (MGLN) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Magellan Health, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are MGLN's main competitors?
Magellan Health, Inc. (MGLN) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether MGLN has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about MGLN?
Wall Street analyst coverage for MGLN includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is MGLN's market cap?
Market capitalization (market cap) for MGLN is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows MGLN's current market cap alongside enterprise value and other valuation metrics.
How has MGLN stock performed recently?
MGLN's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing MGLN's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in MGLN?
Key risk categories for MGLN include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures MGLN's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling MGLN?
Insider trading activity for MGLN tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is MGLN a good stock for beginners?
Magellan Health, Inc. (MGLN) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is MGLN for first-time investors?
Every stock carries risk, including Magellan Health, Inc. (MGLN). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like MGLN.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data may be outdated.
- Stock data pending update.