Insider Decision: Steven J Orlando Offloads $301K Worth Of Molina Healthcare Stock

Steven J Orlando, Director at Molina Healthcare MOH, executed a substantial insider sell on March 5, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Orlando sold 1,000 shares of Molina Healthcare. The total transaction amounted to $301,330.

The latest update on Wednesday morning shows Molina Healthcare shares up by 0.81%, trading at $308.96.

Discovering Molina Healthcare: A Closer Look

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.

Key Indicators: Molina Healthcare's Financial Health

Revenue Growth: Molina Healthcare's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 16.04%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 10.6%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Molina Healthcare's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 4.482143.

Debt Management: Molina Healthcare's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.69, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 15.01 is lower than the industry average, implying a discounted valuation for Molina Healthcare's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.44, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 5.89, Molina Healthcare presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Understanding the Significance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

A Deep Dive into Insider 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.