Molina Healthcare Stock Breaks Above Its 100-Day Moving Average as Michael Burry Pounds the Table on MOH

Core Viewpoint - Molina Healthcare (MOH) is considered a potential takeover target by investor Michael Burry, which could positively impact its stock in 2026 [1][3]. Group 1: Stock Performance - Molina Healthcare shares closed higher on December 30, but are down approximately 50% from their year-to-date high [2]. - The stock has recently surpassed its 100-day moving average, indicating sustained bullish momentum into 2026 [4]. Group 2: Takeover Implications - Being a takeover target could validate Molina Healthcare's disciplined operations and profitability in Medicaid, which Burry described as "rare" [3]. - A larger parent company could provide scale, capital, and diversification, significantly reducing perceived risks associated with margin pressures in managed care [4]. Group 3: Future Growth Potential - Even without a takeover, Molina Healthcare shares are well-positioned to increase in value, as the company is expected to generate profits in Medicaid while competitors may incur losses [5]. - The company's decision to focus on core managed-care operations and halt unprofitable ventures reflects a commitment to sustainably improve its bottom line [6]. - Molina Healthcare's current valuation at approximately 0.22x sales is significantly more attractive compared to larger peers, although it does not currently pay a dividend [6]. Group 4: Analyst Sentiment - Wall Street analysts maintain a consensus rating of "Hold" for Molina Healthcare, with price targets reaching as high as $200, suggesting an upside potential of 18% [7].