Molina Healthcare Inc. (NYSE:MOH) saw its stock fall to a fresh 52-week low of $200.17, reflecting ongoing challenges in the healthcare industry. Despite solid financial footing and a balance sheet with more cash than debt, the company’s shares have declined roughly 30% over the past year. This drop signals both sector-wide headwinds and company-specific hurdles that have weighed on investor sentiment.
The new low highlights a critical juncture for Molina as it strives to stabilize operations and return to growth in the near term.
In recent developments, Molina Healthcare trimmed its fiscal 2025 earnings forecast, now expecting adjusted EPS in the range of $21.50 to $22.50, down from earlier projections exceeding $24.50. The company also reported preliminary Q2 adjusted EPS of $5.50, missing analyst expectations of $6.20. The downward revision stems largely from escalating medical expenses impacting Medicaid, Medicare, and Health Insurance Exchange lines, which are anticipated to continue throughout the rest of the year.
Among analyst reactions, Wolfe Research kept a Peerperform rating on Molina, while Morgan Stanley lowered its stance from Overweight to Equalweight, citing increased utilization trends. UBS and Barclays both cut their price targets—to $260 and $270 respectively—while maintaining Neutral and Equalweight ratings. Barclays pointed to a $0.18 EPS headwind related to recent CMS risk adjustment figures affecting the Marketplace medical loss ratio. Morgan Stanley also raised its medical loss ratio forecasts across all insurance segments, reflecting persistent cost pressures.
Molina Healthcare is set to release its full Q2 financials following market close on July 23, with investors keenly watching for further insights into the company’s path forward.
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