Richard C Zoretic Of Molina Healthcare Shows Optimism, Buys $55K In Stock

On January 2, Richard C Zoretic, Board Member at Molina Healthcare MOH executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: Zoretic made a significant move by purchasing 189 shares of Molina Healthcare as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $55,008.

Monitoring the market, Molina Healthcare's shares up by 0.37% at $288.29 during Friday's morning.

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.

Understanding the Numbers: Molina Healthcare's Finances

Revenue Growth: Molina Healthcare displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 20.96%. This indicates a notable increase in the company's 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.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 11.5%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Molina Healthcare's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 5.67.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.53, caution is advised due to increased financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 14.61 is lower than the industry average, implying a discounted valuation for Molina Healthcare's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.43 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 5.34, Molina Healthcare presents an attractive value opportunity.

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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Illuminating the Importance of Insider Transactions

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.

Navigating the World of Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.