On July 28, Molina Healthcare fell 5.45% in regular trading, trading at $187.2/share, with turnover of $46.40 million. The decline reflects continued selling pressure following the company's Q2 earnings report and a broader managed-care sector selloff.
Molina reported Q2 adjusted EPS of $1.51, down 72.45% year-over-year, on revenue of $10.87 billion, a 4.9% decline from the prior year. Management disclosed that its Medicaid business footprint will shrink dramatically from approximately 13-14 states to about 6 states, with plans to further reduce market segment risk exposure in 2027. The full-year guidance incorporates a $1.50/share headwind from Florida's new Medicaid contract implementation and a $1.00/share drag from legacy MAPD product underperformance. RBC Capital Markets on July 25 cut its price target to $218 from $248, citing Marketplace insurance headwinds and long-term Medicaid rate recovery uncertainty. Industry peers declined sharply in tandem, with Centene falling 9.06%, Humana down 2.51%, and Elevance Health losing 2.01%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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