Molina Healthcare's stock performance not meeting expectations compared to the Nasdaq index?
Molina Healthcare Struggles Amid Rising Medical Costs
Molina Healthcare, Inc. (MOH), a managed healthcare services provider for low-income families and individuals, has faced a challenging period recently. The company's stock has been bearish over both short and long terms, with a 39.2% plunge over the past three months and a 50.1% plummet from its 52-week high of $359.97.
Despite a 15.1% increase in premium collections, driven by new contract wins, acquisitions, growing footprint, and rate increases, Molina's adjusted EPS declined by 6.5% to $5.48 in Q2 2022. This figure fell short of the consensus estimates, primarily due to rising medical costs.
The company's stock prices tanked 16.8% in a single trading session following the release of its mixed Q2 results on Jul. 23. Over the past 52 weeks, Molina is down 49.4%, while the Nasdaq Composite has surged 27.9%.
In comparison, Molina has performed better than Centene Corporation, with a 46.9% decline in 2025 and a 57.9% plunge over the past 52 weeks. However, Molina's stock has traded mostly below its 200-day and 50-day moving averages over the past year.
Molina operates in Medicaid, Medicare, Marketplace, and Other segments, and has operations in almost 20 U.S. states. The company reduced its full-year outlook due to the rising medical expenses, unsettling investor confidence.
As of the latest data, the next report of Molina Healthcare, Inc. is not specified. Among the 17 analysts covering the MOH stock, the consensus rating is a "Hold." The mean price target of $189.43 suggests a modest 5.4% upside potential for Molina Healthcare's stock.
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Aditya Sarawgi did not have positions in any of the securities mentioned in this article at the time of publication.
Molina Healthcare, Inc. has a market cap of $9.6 billion, making it a mid-cap stock. The company's topline came in at $11.4 billion, up 15.7% year-over-year and 5.4% ahead of the Street's expectations.
In conclusion, while Molina Healthcare, Inc. has faced challenges due to rising medical costs, the company continues to operate in multiple segments across various states. With a modest upside potential and a "Hold" consensus rating from analysts, investors may want to closely monitor Molina's performance in the coming quarters.
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