Noteworthy Insider Activity: Richard M Schapiro Invests $55K In Molina Healthcare Stock

A new SEC filing reveals that Richard M Schapiro, Board Member at Molina Healthcare MOH, made a notable insider purchase on January 2,.

What Happened: Schapiro demonstrated confidence in Molina Healthcare by purchasing 189 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the transaction is $55,008.

In the Friday's morning session, Molina Healthcare's shares are currently trading at $288.29, experiencing a up of 0.37%.

Get to Know Molina Healthcare Better

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's Economic Impact: An Analysis

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. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 11.5%, 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 5.67.

Debt Management: Molina Healthcare's debt-to-equity ratio surpasses industry norms, standing at 0.53. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.61 is lower than the industry average, indicating potential undervaluation for the 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: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.