Molina Healthcare, Inc. (MOH)

Molina Healthcare's stock price has experienced significant fluctuations in the past six months. Key events impacting the stock include Q1 2025 earnings, Q2 2025 earnings and guidance cut due to medical cost pressures, the loss of the Virginia Medicaid contract, Medicaid redeterminations, and acquisitions to expand its footprint and membership.

Demand seasonality for Molina Healthcare's products and services is influenced by government program enrollment cycles, healthcare utilization patterns, Medicaid redeterminations, and rate cycles. Enrollment in Medicaid, Medicare, and Health Insurance Marketplace plans can have seasonal aspects. Medical costs can exhibit seasonality, with higher utilization sometimes observed during certain periods. The process of Medicaid redeterminations can lead to fluctuations in membership. Molina Healthcare's rate cycle is well-timed to address the dislocation between rates and medical cost trends for 2026.

Molina Healthcare, Inc. is a managed care company specializing in healthcare services for low-income individuals and families through government-sponsored programs, operating primarily in the Healthcare sector and Managed Care industry. The company contracts with state and federal governments to offer health insurance plans, including Medicaid Managed Care Plans, Medicare Advantage Plans (Part C) and Prescription Drug Plans (Part D), Health Insurance Marketplace Plans, Children's Health Insurance Program (CHIP), and ancillary services like behavioral health, dental, vision, and pharmacy benefit management.

As of Q3 2024, Molina Healthcare, Inc. serves approximately 5.3 million members across 19 states, with a strong presence in California, Texas, Florida, Ohio, New Mexico, and Washington. The company operates Medicaid programs in 17 states and has potential for expansion. Its Medicare health plan options are available in multiple states. All of Molina Healthcare's revenues are earned in the United States.

Molina Healthcare maintains a strong position as a specialized provider of government-sponsored healthcare programs, recognized on Forbes lists. However, the company's reputation and stock have been impacted by medical cost trend concerns and earnings guidance cuts, leading to scrutiny and a class action lawsuit.

Molina Healthcare, Inc. has a diverse ownership base, with institutional investors holding a significant portion of the company's stock, ranging from 75.22% to 98.36%. Major institutional owners include Vanguard Group Inc., Capital World Investors, and BlackRock, Inc. Individual ownership constitutes a smaller fraction, around 1.11% to 27.02%, with notable individual owners like John C. Molina.