Molina Healthcare, Inc. (MOH)

Molina Healthcare's stock price has experienced significant volatility and a notable decline over the past six months. The stock slumped over 50% in 2025, and between January 2025 and January 2026, it saw a decline of 40.18%. A major event impacting the stock was the Q3 2025 earnings report on October 23, 2025, where the company posted an earnings per share (EPS) of $1.84, significantly missing analysts' expectations of $3.92, leading to a 20% sell-off. The company's shares were also negatively affected throughout 2025 by an "acuity shift," where healthier members left Medicaid rolls faster than sicker ones, resulting in a more expensive patient base. In July 2025, Molina had already issued preliminary Q2 results that were below expectations and cut its full-year EPS guidance, citing higher medical costs across all business lines.

Molina Healthcare's products and services experience demand seasonality, particularly within its Marketplace segment. The company's Q4 2024 Medical Cost Ratio (MCR) projection for the Marketplace segment reflected "normal marketplace seasonality." Additionally, the company has noted increased medical spending due to "seasonal illnesses like the flu," which can impact medical costs.

Molina Healthcare operates in the Healthcare sector, focusing on Managed Health Care and Hospital & Medical Service Plans. The company manages the health and well-being of its members through care coordination, utilization management, and provider network access. Molina Healthcare offers health plans under Medicaid, Medicare, and the Health Insurance Marketplace, serving underserved communities and vulnerable populations.

Molina Healthcare operates in numerous states across the United States and is a leading provider of health plans in states including California, Florida, Michigan, Missouri, New Mexico, Ohio, South Carolina, Texas, Utah, Washington, and Wisconsin. The company also offers Medicare health plan options in Arizona, Idaho, Illinois, Kentucky, Massachusetts, Nevada, New York, and Virginia. Medicaid contracts in California, New York, Texas, and Washington account for over half of its enrollees.

Molina Healthcare's brand reputation has been significantly impacted by a securities fraud class action lawsuit alleging that the company's management concealed material information about rising medical cost trends between February and July 2025. Despite these legal challenges and financial setbacks, Molina Healthcare was recognized in December 2025 as one of the "Best Medicaid and Medicare Advantage D-SNP Plans" for 2026 by Healthcare Insider.

Molina Healthcare, Inc. is largely dominated by institutional investors, who collectively own 98.5% of the company's stock. Major institutional shareholders include Vanguard Group Inc, Capital World Investors, BlackRock, Inc., Price T Rowe Associates Inc /md/, Aqr Capital Management Llc, Harris Associates L P, State Street Corp, Fmr Llc, and T. Rowe Price Investment Management, Inc. The largest individual shareholder is John C. Molina, who holds 4.88 million shares, representing 9.50% of the company.