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Molina Healthcare Inc (NYSE:MOH). stock has reached a new 52-week low, touching $155.59. This milestone reflects a significant downturn for the company, as it represents a 54.75% decrease over the past year. The healthcare provider, with a market capitalization of $8.5 billion and annual revenue of $41.7 billion, is currently trading at an attractive P/E ratio of 7.95. According to InvestingPro analysis, the stock appears undervalued at current levels. The healthcare services provider has faced a challenging market environment, contributing to this substantial decline in its stock value. Technical indicators from InvestingPro suggest the stock is in oversold territory, and the company maintains a strong balance sheet with more cash than debt. Investors are closely monitoring the situation to assess the potential for recovery amid ongoing market fluctuations. For deeper insights, InvestingPro offers 12 additional tips and a comprehensive Pro Research Report on Molina Healthcare.
In other recent news, Molina Healthcare reported its second-quarter 2025 earnings, revealing adjusted earnings of $5.48 per share, which fell short of analyst expectations of $5.82. Despite this, the company’s revenue increased by 15% year-over-year to $11.43 billion, surpassing the consensus estimate of $10.94 billion. However, rising medical costs impacted profitability, leading Molina to adjust its full-year guidance downward. The company’s medical care ratio, an important indicator of medical costs relative to premium revenue, worsened to 90.4% from 88.6% in the previous year. Additionally, Cantor Fitzgerald downgraded Molina Healthcare from Overweight to Neutral, citing concerns over future margin performance, particularly in its Medicaid business. This downgrade included a significant reduction in the price target from $312.00 to $210.00. Previously, Cantor Fitzgerald had maintained an Overweight rating with a $312.00 price target, despite expressing disappointment over the company’s revised 2025 guidance and its implications for the Health Insurance Exchange business. These developments highlight ongoing challenges for Molina Healthcare in managing costs and maintaining investor confidence.
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