Molina Healthcare, Inc. (MOH)

Molina Healthcare's stock price has experienced significant fluctuations in the past six months. The stock fell sharply following its Q3 CY2025 earnings report due to an earnings miss and a downward revision of its full-year adjusted EPS guidance. In Q2 2025, the company experienced an increase in medical cost trends, leading to an expected increase in the full-year consolidated Medical Cost Ratio. In Q1 2025, Molina Healthcare announced better-than-expected revenue and adjusted EPS, but net income dipped. The termination of Molina's Virginia Medicaid contract was expected to reduce Medicaid membership. Throughout 2025, Molina has faced persistent medical cost pressures, leading to an increase in its consolidated MCR. The company is also in the spotlight due to a class action lawsuit related to past company disclosures.

Demand for Molina Healthcare's products and services can exhibit some seasonality, influenced by enrollment cycles and healthcare utilization patterns. The company's Q4 2024 Marketplace Medical Cost Ratio (MCR) projection reflected seasonality and significant Special Enrollment Period (SEP) growth. Medical cost trends can be influenced by seasonal illnesses. The company's focus on Medicaid and Medicare means that demand is largely tied to government policies, funding, and eligibility criteria, which can be subject to changes and redeterminations.

Molina Healthcare, Inc. is a managed care company based in Long Beach, California, focusing on government-sponsored healthcare programs like Medicaid, Medicare, and the Health Insurance Marketplace. The company's major products include Medicaid plans for low-income individuals, families, and people with disabilities, Medicare plans for the elderly and those with certain diseases, and Health Insurance Marketplace plans offering essential health benefits. Molina Healthcare aims to improve the health of its members through integrated healthcare solutions, emphasizing quality, affordability, and accessibility by coordinating care, managing utilization, and ensuring access to a broad network of providers.

Molina Healthcare operates in 21 states across the U.S., with a strong concentration in government-sponsored healthcare programs. Key states include California, Texas, Florida, Ohio, New Mexico, and Washington. As of Q4 2023, the company served approximately 4.1 million members across its Medicaid, Medicare, and Marketplace segments. The company has expanded its geographic reach through strategic acquisitions and by winning new Medicaid contracts in states such as Georgia, Texas, Nevada, Illinois, Florida, and Wisconsin.

Molina Healthcare has a reputation as a specialized provider of government-sponsored healthcare programs, particularly Medicaid and Medicare, with a focus on serving underserved communities. The company was recognized as a FORTUNE 500 company in April 2025. Forbes also listed Molina Healthcare among the "Most Trusted Companies in America" and "America's Best Employers for Engineers" in 2025. However, the company's reputation has been impacted by recent financial performance challenges, including a significant miss in Q3 2025 earnings and a downward revision of full-year guidance, leading to a sharp decline in stock price and investor concerns. The ongoing class action lawsuit related to past company disclosures could also affect its brand reputation.

Molina Healthcare, Inc. has a diverse ownership structure, with a significant portion held by institutional investors, ranging from approximately 70.93% to 98.50%. Individual insiders own about 1.12% to 27.03% of the company. Major institutional owners include Vanguard Group Inc., Capital World Investors, and BlackRock, Inc. John C. Molina is the largest individual shareholder, owning 4.88 million shares representing 9.01% of the company.