Core Viewpoint - Johnson Fistel, PLLP is investigating potential derivative claims on behalf of Molina Healthcare, Inc. regarding alleged fiduciary breaches related to undisclosed medical cost trends [1][2]. Investigation Background - The investigation focuses on whether Molina's board failed to oversee internal controls, allowed misleading disclosures, and exposed the company to litigation and reputational harm [3]. - Allegations include higher-than-expected medical service utilization, a gap between premium pricing assumptions and actual costs, and the likelihood of reduced fiscal 2025 guidance [6]. Shareholder Actions - Current Molina shareholders who have held their shares continuously since before February 5, 2025, may have standing to pursue derivative claims on behalf of the company [2].

Company Overview - Molina Healthcare, Inc. (MOH) has a market cap of $8.7 billion and provides managed healthcare services to low-income individuals and families through Medicaid, Medicare, and state insurance marketplace programs [1] - The company operates in four key segments: Medicaid, Medicare, Marketplace, and Other [1] Stock Performance - MOH shares have dropped 55.4% from their 52-week high of $359.97 and decreased 10.4% over the past three months, underperforming the Dow Jones Industrials Average, which rose by 5.6% during the same period [2] - Year-to-date, MOH stock is down 44.9%, lagging behind the Dow's nearly 13% gain, and has dipped 46.2% over the past 52 weeks compared to the Dow's 8.6% increase [3] Recent Financial Results - Following the Q3 2025 results on October 22, MOH shares tumbled 17.5% as adjusted EPS fell to $1.84 from $6.01 due to elevated medical costs, with about half of the underperformance attributed to the Marketplace segment [4] - The company has revised its full-year 2025 adjusted profit forecast to approximately $14 per share, citing ongoing pressure from higher-than-expected healthcare utilization, particularly in Medicare and Marketplace plans [4] Competitive Landscape - In comparison, rival CVS Health Corporation (CVS) has significantly outperformed MOH, with CVS stock surging 75.9% year-to-date and 43.2% over the past 52 weeks [5] - Analysts remain cautious about MOH's prospects, with a consensus rating of "Hold" from 18 analysts and a mean price target of $170, representing a 5.9% premium to current levels [5]

Core Insights - Aeroflow Health has partnered with Molina Healthcare of South Carolina to provide in-network nutrition counseling and diabetes self-management education (DSME) services to members across the state [1][2] Company Overview - Aeroflow Health is a leading provider of durable medical equipment and health services, headquartered in Asheville, North Carolina, focused on improving quality of life through innovative solutions [7] Service Offerings - The Nutrition Therapy Program offers access to an online network of qualified dietitians, combining personalized guidance with evidence-based education resources and digital support tools [2] - Services are provided at little to no cost through insurance, addressing a significant barrier to accessing quality nutrition and diabetes care [4] - The program includes individual and group nutrition coaching, covering topics such as mindful eating, heart-healthy nutrition, and diabetic weight loss [5] Health Statistics - Approximately 25,000 adults in South Carolina are diagnosed with diabetes each year, with about 13% of the adult population being diabetic and 35% diagnosed with obesity [3] - Medical expenses for Americans with diabetes are approximately 2.6 times higher than those without diabetes, highlighting the financial burden of these conditions [3] Impact on Health Outcomes - Patients enrolled in the Nutrition Therapy Program and DSME services report increased energy levels, improved mood, better sleep, and a greater sense of well-being [4] - The partnership aims to transform health plans into true partners for patients, providing essential tools and support for managing health challenges [5]

Core Viewpoint - Famed investor Michael Burry has expressed a bullish stance on Molina Healthcare (MOH), contrasting it with his bearish view on Palantir (PLTR) [1] Company Overview - Molina Healthcare, founded in 1980, provides managed health care services primarily for low-income individuals and families, seniors, and those eligible for government-funded programs like Medicaid and Medicare, serving approximately 5.6 million members [2] - The company's market capitalization currently stands at $7.9 billion, having experienced a significant pullback of nearly 50% in 2025 [2] Financial Performance - Molina's Q3 earnings saw a dramatic decline of 69.4% year-over-year, reporting earnings of $1.84, which fell short of the consensus estimate of $3.90, attributed to challenges in the Medicare and Marketplace segments [3] - The company reported revenues of $11.48 billion in Q3, marking an 11% increase from the previous year, with core premium revenues rising by 11.8% to $10.84 billion [4] - Over the past decade, Molina has achieved compound annual growth rates (CAGRs) of 12.90% in revenue and 19.69% in earnings, with analysts projecting forward revenue growth of 11.37%, surpassing the sector median of 7.61% [4] Operational Metrics - The medical care ratio (MCR) increased to 92.6% from 89.2% in the quarter, indicating a higher percentage of premium revenue spent on medical claims and healthcare services, which is generally viewed as a negative trend [5] - Molina's cash position remains robust, closing the quarter with a cash balance of $4.2 billion and no short-term debt; however, there was a net cash outflow of $237 million from operating activities in the first nine months of 2025, contrasting with an inflow of $868 million in the same period the previous year [6]

Core Insights - 2025 is projected to be a challenging year for health insurance stocks due to higher-than-expected utilization and medical costs, leading to multiple profit warnings across the sector [1] Industry Summary - Health insurers, both large and small, are expected to significantly increase premiums in 2026 to compensate for the rising claims costs [1]

Core Insights - 2025 is projected to be a challenging year for health insurance stocks due to higher-than-expected utilization and medical costs, leading to multiple profit warnings across the sector [1] Industry Summary - Health insurers, both large and small, are expected to significantly increase premiums in 2025 to counterbalance the rising claims costs [1]

We came across a bullish thesis on Molina Healthcare, Inc. on Sherwood Investment Letter’s Substack by Joel Sherwood. In this article, we will summarize the bulls’ thesis on MOH. Molina Healthcare, Inc.'s share was trading at $145.97 as of December 2nd. MOH’s trailing and forward P/E were 8.93 and 10.45, respectively according to Yahoo Finance. Best Cancer Hospitals In The World in 2018 g-stockstudio/Shutterstock.com Molina Healthcare (MOH) shares dropped nearly 20% following a disappointing Q3, with hi ...

Company Overview - Molina Healthcare, Inc. is a leading provider of managed healthcare services focused on government-sponsored programs such as Medicaid and Medicare [6] - The company serves low-income families, individuals, and seniors eligible for Medicaid and Medicare in 18 U.S. states, with approximately 5.2 million members as of December 31, 2021 [7] - Revenue for the trailing twelve months (TTM) is $54.07 billion, with a net income of $883 million and a market capitalization of $7.50 billion [5] Recent Developments - Cobalt Capital Management disclosed a new position in Molina Healthcare, acquiring 115,000 shares valued at approximately $22.01 million, which represents 10.11% of the fund's reportable assets [2][3] - As of November 13, 2025, Molina Healthcare's stock price was $138.48, reflecting a decline of 55.23% over the past year, underperforming the S&P 500 by 69.17 percentage points [4] Investment Insights - Cobalt Capital's significant investment suggests a belief that the market has misjudged the company's potential, indicating a gap between the stock's decline and Molina's cash-generating capabilities [10] - The company's revenue model relies on government contracts that pay a fixed amount per member, making financial performance dependent on effective management of medical costs [11] - Recent challenges in rate negotiations and rising medical costs have negatively impacted the stock price, but the underlying business retains advantages that could support future growth [12]

Core Viewpoint - Molina Healthcare is facing significant operational and financial challenges, with declining Medicaid enrollment and increasing costs impacting profitability and outlook [2][3][6]. Company Overview - Molina Healthcare provides managed healthcare services primarily to low-income families and individuals through Medicare and Medicaid programs [1]. Financial Performance - The company has missed earnings estimates in three of the last four quarters, with a notable miss of -53.65% in Q3, resulting in a trailing four-quarter average earnings miss of -15.8% [6]. - Analysts have revised fourth-quarter earnings estimates down by -87.28% over the past 60 days, with the current Zacks Consensus EPS Estimate at 43 cents, reflecting a negative growth of -91.5% year-over-year [7][8]. Operational Challenges - Medicaid membership has declined by 5.2% in the first nine months of 2025, indicating difficulties in enrollment growth [2]. - Operating expenses have consistently increased, leading to pressure on margins and a worsening medical care ratio [3]. Industry Context - Molina Healthcare is ranked as a Zacks Rank 5 (Strong Sell) and is part of the bottom 16% of the Zacks Medical – HMOs industry group, which is expected to underperform the market in the next 3 to 6 months [4]. - The stock has been underperforming, hitting a 52-week low last month, and is considered a compelling short opportunity [5]. Technical Analysis - The stock is in a sustained downtrend, trading below both the 50-day and 200-day moving averages, indicating bearish sentiment [9][12]. - A "death cross" has occurred, suggesting that significant upward movement would be required to consider long positions [12]. Final Assessment - The combination of deteriorating fundamentals, negative earnings revisions, and inclusion in a poorly performing industry group suggests that Molina Healthcare is unlikely to see significant recovery in the near term [13][14].

Core Viewpoint - Rosen Law Firm is urging investors of Molina Healthcare, Inc. to secure legal counsel before the December 2, 2025 deadline for a securities class action lawsuit related to undisclosed adverse facts affecting the company's financial guidance and operations [1][5]. Group 1: Class Action Details - The class action pertains to Molina securities purchased between February 5, 2025, and July 23, 2025, with a lead plaintiff deadline set for December 2, 2025 [1][2]. - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by contacting Rosen Law Firm [3][6]. Group 2: Allegations Against Molina - The lawsuit claims that Molina failed to disclose critical information regarding its medical cost trend assumptions and the dislocation between premium rates and medical costs [5]. - It is alleged that Molina's growth was reliant on limited utilization of various health services, which could lead to a significant cut in financial guidance for fiscal year 2025 [5]. - The lawsuit asserts that positive statements made by Molina regarding its business and prospects were materially misleading due to the undisclosed adverse facts [5]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company and being ranked highly for securities class action settlements [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen has been recognized as a leading figure in the plaintiffs' bar, highlighting the firm's expertise in this area [4].