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Molina Healthcare Inc (NYSE:MOH). stock reached a 52-week low, dipping to $200.17, as the company faces a challenging market environment. According to InvestingPro data, the healthcare provider maintains strong fundamentals with a ’GREAT’ financial health score and holds more cash than debt on its balance sheet. Over the past year, Molina Healthcare’s stock has experienced a significant decline, with its value decreasing by 29.61%. This downturn reflects broader challenges in the healthcare sector, as well as company-specific issues that have impacted investor confidence. The new 52-week low marks a critical point for the company, as it navigates these difficulties and seeks to regain stability and growth in the coming months. Technical indicators from InvestingPro suggest the stock is in oversold territory, while management has been actively buying back shares - just two of numerous insights available in the comprehensive Pro Research Report.
In other recent news, Molina Healthcare has revised its earnings guidance for fiscal year 2025, projecting adjusted earnings per share between $21.50 and $22.50, down from a previous forecast of over $24.50. The company also pre-announced second-quarter adjusted earnings per share of $5.50, which falls short of the consensus estimate of $6.20. This adjustment is attributed to rising medical costs across its Medicaid, Medicare, and Health Insurance Exchange segments, which are expected to persist through the second half of 2025. Wolfe Research maintained its Peerperform rating for Molina Healthcare, while Morgan Stanley (NYSE:MS) downgraded the company from Overweight to Equalweight, citing increased healthcare utilization. UBS and Barclays (LON:BARC) also lowered their price targets for Molina Healthcare, with UBS setting a target of $260 and Barclays reducing it to $270, both maintaining Neutral and Equalweight ratings, respectively. Barclays noted an estimated $0.18 EPS headwind based on recent CMS risk adjustment data, affecting the company’s Marketplace medical loss ratio. The ongoing cost pressures have led Molina to adjust its medical loss ratio estimates, with Morgan Stanley increasing its projections across all insurance products. Molina Healthcare plans to release its complete second-quarter results after market close on July 23.
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