Corient adds $2.7M Molina Healthcare stake as insurer's margin thins
What's the deal? Corient Private Wealth LPDealroom has a profile for this one. Try Dealroom → acquired a new stake in Molina HealthcareDealroom has a profile for this one. Try Dealroom → during the second quarter, buying 11,823 shares worth about $2.7 million, according to its latest Form 13F filing with the Securities and Exchange Commission. Molina is a managed care company specialising in government-sponsored health plans.
Why now? The purchase follows a rocky stretch for the stock, which trades at $203.43 after swinging between a 52-week low of $121.06 and a high of $244.89. Its 50-day moving average of $211.65 sits above the 200-day average of $181.09, signalling a recent recovery.
What's the context? Molina's second-quarter earnings, reported on July 22, showed revenue of $10.87 billion, down 4.8% year on year but slightly ahead of the $10.83 billion analysts expected. Earnings of $1.51 per share beat the $1.39 consensus, though they fell sharply from $5.48 a year earlier. The company posted a negative net margin of 0.02%.
What could go wrong? Analysts are split. Three rate the stock a buy, twelve a hold, and two a sell, for an average "hold" rating and a $202.44 price target. Recent revisions have moved both ways: Wells FargoDealroom has a profile for this one. Try Dealroom → cut its target to $220, while TD CowenDealroom has a profile for this one. Try Dealroom → raised its to $230.
The signal: Corient's entry adds to heavy institutional interest — hedge funds and other institutions own 98.50% of Molina's stock. The wager sits against a $10.62 billion market cap and squeezed margins, reflecting bets that the managed-care insurer can steady declining revenue.
Read more: americanbankingnews.com
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