Shares of Molina Healthcare Inc. (NYSE:MOH) fell to a 52-week low of $262.29, marking a significant moment in its trading performance. The stock trades at a price-to-earnings ratio of 15.2x and has delivered solid revenue growth of 16.24%. Over the past year, Molina’s stock price has seen a modest increase of 3.34%, showing some resilience amid fluctuating market conditions. This recent low may encourage investors to reevaluate the company’s valuation and future growth prospects.
In related news, Molina Healthcare posted strong Q1 2025 financial results, with earnings per share of $6.08, beating analyst estimates of $5.97. Revenue also surpassed expectations at $11.15 billion versus the $10.83 billion forecast. Morgan Stanley initiated coverage of Molina Healthcare with an Overweight rating and a price target of $364, highlighting the company’s emphasis on government-sponsored managed care and promising premium revenue growth. Cantor Fitzgerald also maintained an Overweight rating and set a $356 target, citing expected margin improvements in Medicaid and Medicare by 2025.
Cantor Fitzgerald further projected only a minimal impact from new Medicaid work requirements—estimated at a 0.6% effect on 2026 EPS—and pointed to successful contract awards in Nevada and Illinois as growth drivers. Molina Healthcare has set guidance for premium revenues of $42 billion in 2025, with adjusted EPS expected to reach at least $24.50, an 8% increase year over year.
Meanwhile, Centene (NYSE:CNC) experienced a price target cut to $52 by BofA Securities amid concerns over higher acuity in its Marketplace population and unexpected Medicaid trends. BofA kept a Neutral rating on Centene but acknowledged better-than-expected performance in its Medicare Advantage segment. These updates highlight ongoing challenges and dynamics in the healthcare sector, especially for firms focused on government-sponsored programs.