Molina Healthcare, Inc. (MOH)

Molina Healthcare's stock price has declined significantly in the past six months. The share price was $204.25 as of July 17, 2025, a 29.02% decrease from July 18, 2024. Key events impacting the stock include lowered earnings guidance in July 2025 due to elevated medical costs, a sector-wide sell-off after competitor Centene pulled its full-year financial guidance, a Q1 2025 earnings beat in April 2025, and a Q4 2024 EPS miss in February 2025. Analysts generally maintain a mixed but predominantly positive outlook for Molina.

Molina Healthcare's products and services experience demand seasonality, particularly concerning medical costs. The marketplace segment typically sees late in year medical cost seasonality, and seasonal illnesses can impact medical costs in the Medicaid segment. Silver metal tier products incur less MCR seasonality than bronze metal tier products due to lower deductibles. The company's ability to accurately predict and manage healthcare costs is crucial due to these seasonal and other fluctuating factors.

Molina Healthcare, Inc. (MOH) is a managed care company providing services to individuals and families who qualify for government-sponsored programs, primarily Medicaid and Medicare, and also offers plans through state insurance marketplaces. The company offers Medicaid plans for low-income individuals, Medicare Advantage and prescription drug plans, marketplace plans through the Affordable Care Act, specialized services like long-term and behavioral health support, and digital health solutions with telehealth and mobile applications.

Molina Healthcare operates across 21 states in the United States, serving approximately 5.5 million members as of December 31, 2024. The company has a strong presence in key states such as California, Texas, Florida, Ohio, New Mexico, and Washington. In 2024, Molina Healthcare expanded its operations by entering Connecticut through the acquisition of ConnectiCare.

Molina Healthcare aims to deliver cost-effective, high-quality care to underserved communities. However, the company has faced penalties related to False Claims Act violations, insurance violations, wage and hour violations, HHS civil monetary penalties, and Medicare Parts C and D Enforcement Action. These violations and associated penalties can negatively affect the company's brand reputation.

Molina Healthcare is primarily owned by institutional shareholders, who hold approximately 98.14% of the company's stock. Major institutional owners include Vanguard Group Inc, Capital World Investors and BlackRock, Inc. Individual ownership includes Molina Healthcare insiders, who own 27.00% of the company. The largest individual shareholder is John C. Molina, who owns 4.88 million shares, representing 9.01% of the company.