Disclosed on May 1, Richard M Schapiro, Board Member at Molina Healthcare MOH, executed a substantial insider sell as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Schapiro sold 669 shares of Molina Healthcare. The total transaction amounted to $214,414.
As of Friday morning, Molina Healthcare shares are down by 0.0%, currently priced at $313.04.
Get to Know Molina Healthcare Better
Molina Healthcare Inc offers healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). It has four segments: Medicaid, Medicare, Marketplace and Others. The Medicaid, Medicare, and Marketplace segments represent the government-funded or sponsored programs under which it offers managed healthcare services. The Other segment, which is insignificant to its consolidated results of operations, includes long-term services and supports consultative services in Wisconsin. It generates majority revenue from Medicaid segment.
Financial Milestones: Molina Healthcare’s Journey
Revenue Growth: Molina Healthcare’s remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 12.24%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Exploring Profitability:
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Gross Margin: With a low gross margin of 11.48%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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Earnings per Share (EPS): Molina Healthcare’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 5.47.
Debt Management: Molina Healthcare’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.87, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: The P/E ratio of 15.12 is lower than the industry average, implying a discounted valuation for Molina Healthcare’s stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.42 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 6.01 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Unmasking the Significance of Insider Transactions
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Molina Healthcare’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
