EVP Of Molina Healthcare Purchased $2.87M In Stock

On March 5, a substantial insider purchase was made by Debra Bacon, EVP at Molina Healthcare MOH, as per the latest SEC filing.

What Happened: Bacon’s recent purchase of 9,659 shares of Molina Healthcare, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, reflects confidence in the company’s potential. The total transaction value is $2,868,816.

As of Wednesday morning, Molina Healthcare shares are up by 1.15%, currently priced at $310.0.

About Molina Healthcare

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.

Key Indicators: Molina Healthcare’s Financial Health

Positive Revenue Trend: Examining Molina Healthcare’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 16.04% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 10.6%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Molina Healthcare’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 4.482143.

Debt Management: Molina Healthcare’s debt-to-equity ratio surpasses industry norms, standing at 0.69. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: Molina Healthcare’s P/E ratio of 15.01 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.44 is lower than the industry average, implying a discounted valuation for Molina Healthcare’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Molina Healthcare’s EV/EBITDA ratio at 5.89 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Transactions Are Important

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.