A notable insider purchase on October 3, was reported by Richard M Schapiro, Board Member at Molina Healthcare (NYSE:MOH), based on the most recent SEC filing.
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Schapiro increased their investment in Molina Healthcare by purchasing 285 shares through open-market transactions, signaling confidence in the company’s potential. The total transaction value is $54,945.
At Friday morning, Molina Healthcare shares are up by 3.76%, trading at $201.56.
Delving into Molina Healthcare’s Background
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.
Molina Healthcare: Financial Performance Dissected
Revenue Growth: Molina Healthcare displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 15.66%. This indicates a notable increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.
Interpreting Earnings Metrics:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 10.21%, indicating potential difficulties in maintaining profitability compared to its 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 4.75.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.77, caution is advised due to increased financial risk.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: Molina Healthcare’s P/E ratio of 9.58 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.25 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 2.85, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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Navigating the Impact of Insider Transactions on Investments
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Exploring Key Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed 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.
