Molina Healthcare, Inc. (MOH)
Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals. The company operates in Medicaid, Medicare, Marketplace, and other segments, serving approximately 5.2 million members across 18 states as of December 31, 2021.
Company Overview
Molina Healthcare offers stable growth within government-sponsored healthcare, focusing on Medicaid and Medicare markets. With a P/E ratio of 14.18 and a low Beta of 0.49, Molina presents a defensive investment opportunity in a growing sector, serving over 5 million members across 18 states.
Investment Thesis
Molina Healthcare presents a compelling investment opportunity due to its strong position in the government-sponsored healthcare market. The company's focus on Medicaid and Medicare provides a stable revenue base, supported by consistent government funding. With a P/E ratio of 14.18, Molina is attractively valued compared to its peers. Growth catalysts include the ongoing expansion of Medicaid programs and the increasing enrollment in Medicare Advantage plans. Molina's ability to effectively manage healthcare costs and deliver quality care positions it for continued success. The company's low Beta of 0.49 suggests lower volatility compared to the broader market, making it an attractive option for risk-averse investors. The company's profit margin of 1.0% indicates room for improvement through operational efficiencies and strategic initiatives.
Key Highlights
- Molina Healthcare serves approximately 5.2 million members as of December 31, 2021, demonstrating its significant market presence in government-sponsored healthcare.
- The company operates in 18 states, providing geographic diversification and mitigating state-specific regulatory risks.
- Molina's P/E ratio of 14.18 suggests an attractive valuation compared to its industry peers.
- The company's low Beta of 0.49 indicates lower volatility compared to the broader market.
- Molina's focus on Medicaid and Medicare provides a stable revenue base supported by government funding.
Competitors
Strengths
- Strong position in government-sponsored healthcare market.
- Large member base and geographic diversification.
- Experienced management team with expertise in managed care.
- Stable revenue stream from government funding.
Weaknesses
- Relatively low profit margin compared to peers.
- Dependence on government funding and regulatory changes.
- Exposure to political and economic risks.
- Potential for increased competition in the managed care industry.
Catalysts
- Ongoing: Expansion of Medicaid programs in various states, increasing the eligible population.
- Ongoing: Increasing enrollment in Medicare Advantage plans, driven by the aging population.
- Upcoming: Potential for new government initiatives to expand access to healthcare.
- Ongoing: Implementation of value-based care programs, improving patient outcomes and reducing costs.
Risks
- Potential: Changes in government funding and reimbursement policies could negatively impact revenue.
- Ongoing: Increased competition from other managed care organizations could erode market share.
- Ongoing: Rising healthcare costs and utilization could strain profitability.
- Potential: Regulatory scrutiny and compliance requirements could increase operating expenses.
Growth Opportunities
- Expansion into New States: Molina Healthcare has the opportunity to expand its operations into new states, further diversifying its geographic footprint and increasing its member base. The market size for Medicaid and Medicare programs is substantial, with billions of dollars in government funding allocated annually. By strategically targeting states with favorable regulatory environments and growing populations, Molina can drive significant revenue growth. This expansion can be achieved through organic growth or strategic acquisitions, with a timeline of 3-5 years.
- Increased Enrollment in Medicare Advantage Plans: The Medicare Advantage market is experiencing rapid growth, driven by the increasing popularity of these plans among seniors. Molina Healthcare can capitalize on this trend by enhancing its Medicare Advantage offerings and expanding its presence in existing and new markets. The market size for Medicare Advantage is estimated to be hundreds of billions of dollars annually. By offering competitive benefits and focusing on quality care, Molina can attract a larger share of the Medicare Advantage market, with an ongoing timeline.
- Enhancement of Value-Based Care Programs: Value-based care programs are becoming increasingly prevalent in the healthcare industry, with a focus on improving patient outcomes and reducing costs. Molina Healthcare can enhance its value-based care programs by investing in technology and infrastructure to support data analytics and care coordination. The market size for value-based care is estimated to be billions of dollars annually. By demonstrating improved patient outcomes and cost savings, Molina can attract more members and strengthen its relationships with providers, with an ongoing timeline.
- Strategic Acquisitions: Molina Healthcare can pursue strategic acquisitions to expand its service offerings, enter new markets, or gain access to new technologies. The market for healthcare acquisitions is active, with numerous opportunities available. By carefully evaluating potential targets and executing successful integrations, Molina can accelerate its growth and enhance its competitive position. The timeline for strategic acquisitions is dependent on market conditions and available opportunities, with a potential timeline of 1-3 years.
- Leveraging Technology to Improve Efficiency: Investing in technology solutions can streamline operations, reduce administrative costs, and improve the member experience. This includes implementing advanced data analytics, telehealth platforms, and automated claims processing systems. The market for healthcare technology is rapidly growing, with billions of dollars being invested annually. By embracing technology, Molina can enhance its efficiency, improve its service quality, and gain a competitive advantage, with an ongoing timeline.
Opportunities
- Expansion into new states and markets.
- Increased enrollment in Medicare Advantage plans.
- Enhancement of value-based care programs.
- Strategic acquisitions to expand service offerings.
Threats
- Changes in government funding and reimbursement policies.
- Increased competition from other managed care organizations.
- Rising healthcare costs and utilization.
- Regulatory scrutiny and compliance requirements.
Competitive Advantages
- Established relationships with state governments and healthcare providers.
- Expertise in managing government-sponsored healthcare programs.
- Scale and geographic diversification, serving millions of members across multiple states.
About
Molina Healthcare, Inc., founded in 1980 and headquartered in Long Beach, California, is a managed healthcare services provider focused on serving low-income families and individuals. The company's core business revolves around administering government-sponsored healthcare programs, primarily Medicaid and Medicare. Molina operates through four distinct segments: Medicaid, Medicare, Marketplace, and Other. The Medicaid segment represents the largest portion of their business, providing managed care services to eligible individuals and families. The Medicare segment focuses on providing healthcare services to seniors and other eligible individuals through Medicare Advantage plans. The Marketplace segment offers health insurance plans through the state insurance marketplaces established under the Affordable Care Act. As of December 31, 2021, Molina Healthcare served approximately 5.2 million members across 18 states. Molina's commitment to providing accessible and affordable healthcare has positioned it as a key player in the managed care industry, particularly within the government-sponsored healthcare sector. The company continues to expand its reach and enhance its service offerings to meet the evolving needs of its diverse member base.
What They Do
- Provides managed healthcare services to low-income families and individuals.
- Administers Medicaid programs, offering healthcare coverage to eligible individuals and families.
- Offers Medicare Advantage plans, providing healthcare services to seniors and other eligible individuals.
- Participates in state insurance marketplaces, offering health insurance plans under the Affordable Care Act.
- Manages healthcare costs and utilization through various strategies and programs.
- Coordinates care for members, ensuring access to appropriate medical services.
- Works with a network of healthcare providers to deliver quality care to members.
Business Model
- Generates revenue through premiums received from government-sponsored healthcare programs and state insurance marketplaces.
- Manages healthcare costs by negotiating rates with providers and implementing utilization management programs.
- Focuses on providing preventive care and chronic disease management to improve member health outcomes and reduce costs.
Industry Context
Molina Healthcare operates within the managed healthcare industry, which is characterized by increasing demand for cost-effective healthcare solutions. The industry is driven by factors such as the aging population, rising healthcare costs, and government initiatives to expand access to healthcare. Molina's focus on Medicaid and Medicare aligns with the growing trend of government-sponsored healthcare programs. The competitive landscape includes other managed care organizations, such as Anthem (ATR), as well as smaller regional players. Molina's ability to effectively manage healthcare costs and deliver quality care is crucial for success in this competitive environment. The industry is also subject to regulatory changes and evolving reimbursement models.
Key Customers
- Low-income families and individuals eligible for Medicaid.
- Seniors and other eligible individuals enrolled in Medicare Advantage plans.
- Individuals and families purchasing health insurance through state insurance marketplaces.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $11.38B | -$160M | $0.00 |
| Q3 2025 | $11.48B | $79M | $0.00 |
| Q2 2025 | $11.43B | $255M | $0.00 |
| Q1 2025 | $11.15B | $298M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Molina Healthcare, Inc. (MOH) stock price: $135.35 (+0.00, +0.00%)
Why Bull
- •Molina Healthcare has seen a surge in positive community sentiment, reflecting growing confidence in its services and market position.
- •Recent insider buying suggests that executives believe in the company's future prospects, often a bullish signal for investors.
- •The healthcare sector is experiencing increased demand, particularly for managed care services, positioning Molina favorably amidst industry growth.
- •Recent partnerships and contracts indicate Molina's expanding footprint in key markets, enhancing its competitive advantage.
Why Bear
- •Despite positive sentiment, there are concerns regarding regulatory changes that could impact profit margins in the healthcare sector.
- •Community discussions have highlighted worries about rising operational costs, which could pressure Molina's earnings going forward.
- •Some bearish analysts are pointing to potential competition from larger healthcare providers, which may challenge Molina's market share.
- •The overall economic uncertainty could lead to decreased consumer spending on healthcare services, affecting Molina's growth trajectory.
Latest News
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Technical Analysis
Rationale
AI-generated technical analysis for MOH 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 MOH.
Make a Prediction
Set your price target for Molina Healthcare, Inc. (MOH), choose a timeframe, and track your prediction accuracy.
Current price: $135.35
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MOH.
Price Targets
Wall Street price target analysis for MOH.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 11.7% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 3/100
Gross margin of 9.4% is below average, suggesting thin margins and potential pricing pressure.
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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 MOH's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Walmart downgraded, Etsy upgraded: Wall Street's top analyst calls
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10 Health Care Stocks With Whale Alerts In Today's Session
Frequently Asked Questions
What does Molina Healthcare, Inc. do?
Molina Healthcare, Inc. operates as a managed care organization, focusing on government-sponsored healthcare programs. The company primarily serves low-income families and individuals through Medicaid, Medicare, and state insurance marketplaces. Molina manages healthcare costs, coordinates care for members, and works with a network of providers to deliver quality medical services. The company's business model revolves around receiving premiums from government entities and managing healthcare expenses effectively. Molina's commitment to providing accessible and affordable healthcare has positioned it as a key player in the managed care industry.
Is MOH stock a good buy?
MOH stock presents a mixed investment case. The company benefits from a stable revenue stream tied to government-sponsored healthcare, particularly Medicaid and Medicare. However, its relatively low profit margin of 1.0% and dependence on government funding pose risks. The P/E ratio of 14.18 suggests an attractive valuation, but investors should carefully consider the potential for regulatory changes and increased competition. Growth opportunities include expanding into new markets and increasing enrollment in Medicare Advantage plans. A balanced analysis is crucial before considering MOH as a buy.
What are the main risks for MOH?
Molina Healthcare faces several key risks, primarily related to its reliance on government funding and the highly regulated nature of the managed care industry. Changes in government reimbursement policies or funding levels could significantly impact revenue and profitability. Increased competition from other managed care organizations could erode market share and pricing power. Rising healthcare costs and utilization pose ongoing challenges to managing expenses effectively. Regulatory scrutiny and compliance requirements could increase operating expenses and create operational challenges. These risks should be carefully considered by investors.
Is MOH a good stock to buy?
Whether MOH 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 MOH MoonshotScore?
The MoonshotScore for MOH 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 MOH data updated?
MOH 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 MOH is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for MOH?
Growth catalysts for Molina Healthcare, Inc. (MOH) 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 Molina Healthcare, 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 MOH's main competitors?
Molina Healthcare, Inc. (MOH) 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 MOH 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 MOH?
Wall Street analyst coverage for MOH 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 MOH's market cap?
Market capitalization (market cap) for MOH 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 MOH's current market cap alongside enterprise value and other valuation metrics.
How has MOH stock performed recently?
MOH'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 MOH'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 MOH?
Key risk categories for MOH 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 MOH'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 MOH?
Insider trading activity for MOH 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 MOH a good stock for beginners?
Molina Healthcare, Inc. (MOH) 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 MOH for first-time investors?
Every stock carries risk, including Molina Healthcare, Inc. (MOH). 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 MOH.
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 is based on the most recent available information as of 2021.
- Future performance is subject to market conditions and company-specific factors.