Insider Trading : Tue 8/8/23

Notable purchases -- President/CEO adds to CERE; notable sales -- HR Chief active in CME

Buyers:

• BY 10% owner bought 20,000 shares at ~$21.6258 worth ~$433K.
• CERE President & CEO and one (1) Director bought a total of 105,737 shares at $22.85 - $24.01 worth ~$2.5 mln.
• EPD Director bought 50,000 shares at $26.57 -  $26.63 worth ~$1.3 mln.
• GABC Director bought 5,869 shares at $30.67 worth ~$180K.
• HBB President & CEO bought 10,000 shares at $10.59 worth ~$106K.
• OPK CEO & Chairman bought 650,000 shares at $1.815 - $1.86 worth ~$1.2 mln.
• STAA Director bought 2,000 shares at $48.72 worth ~$97K.
• SUP 10% owner Mill Road Capital bought 77,258 shares at $3.5865 - $3.8111 worth ~$284K.

Sellers:

• CME Senior Managing Director & Chief Human Resources Officer sold 4,477 shares at $207.98 worth ~$931K.
• MOH EVP, Health Plans sold 2,523 shares at $312.72 worth ~$789K.
• TZOO 10% owner Azzurro Capital sold 140,000 shares at $7.31 - $7.80 worth ~$1.0 mln.

-=Molina Healthcare (MOH) reported earnings on Tue 31 July 2018 (a/h)

Molina Healthcare beats by $1.99, beats on revs; raises FY18 EPS, revs guidance 

• Reports Q2 (Jun) earnings of $3.08 per share, excluding non-recurring items, $1.99 better than the Capital IQ Consensus of $1.09; revenues fell 2.3% year/year to $4.88 bln vs the $4.67 bln Capital IQ Consensus.
• Overall, the medical care ratio improved to 85.3%, from 86.1% in the first quarter of 2018. Excluding the combined benefit of the 2017 Marketplace risk adjustment and cost sharing reduction (CSR) reimbursement, the medical care ratio would have been 87.0% in the second quarter of 2018, compared with 87.2% in the first quarter of 2018. The sequential improvement in the overall medical care ratio was due to a decrease in the Medicaid medical care ratio partially offset by a seasonally higher Marketplace medical care ratio.
• Co raises guidancefor FY18, sees EPS of $7.39-7.59 (Prior $4.24-4.74), excluding non-recurring items, vs. $4.58 Capital IQ Consensus Estimate; sees FY18 revs of ~$18.8 bln (Prior ~$18.7 bln)vs. $18.73 bln Capital IQ Consensus Estimate.

-=Molina Healthcare (MOH) reported earnings on Thur 2 Nov 2017 (a/h)

Molina Healthcare misses by $1.44, beats on revs 

• Reports Q3 (Sep) loss of $1.62 per share, excluding non-recurring items, $1.44 worse than the Capital IQ Consensus of ($0.18); revenues rose 10.7% year/year to $5.03 bln vs the $4.95 bln Capital IQ Consensus.
• "Our third quarter results do not include any potential impact from the October 12, 2017, direction to Centers for Medicare and Medicaid Services (CMS) from Acting Department of Health and Human Services Secretary Hargan to cease payment of Marketplace CSR subsidies. At September 30, 2017, we had a total of approximately $220 million in excess CSR subsidies, recorded as a payable to CMS. This payable represents the extent to which payments received by us from CMS exceeded our estimate of the actual cost of member subsidies incurred by us through September 30, 2017."
• Marketplace 2018 Update
  • We have taken the following steps in regards to our participation in the ACA Marketplace in 2018:
  • As previously announced, we will exit the Utah and Wisconsin ACA Marketplaces effective December 31, 2017.
  • In our remaining Marketplace plans, we are increasing 2018 premiums by 55% to take into account the absence of cost sharing reduction (CSR) subsidies and other risks related to ACA Marketplace uncertainties.
  • We have reduced the scope of our 2018 participation in the state of Washington Marketplace.
  • We continue to monitor the current political and programmatic developments pertaining to the ACA Marketplace.
• "As previously disclosed, we estimate that our restructuring plan will reduce annualized run-rate expenses by approximately $300 million to $400 million when completed by the end of 2018. We have already achieved $200 million of these run-rate reductions on an annualized basis, which will take full effect no later than January 1, 2018." 

=Molina Healthcare (MOH): Morgan Stanley issues a "double upgrade"

• Morgan Stanley issued a “double upgrade” that hiked its rating on the stock from an Underweight to an Overweight. The firm also its price target from $65 to $68, which suggests an almost 20% upside from last night’s closing price of $56.78 a share.
• The stock has fallen almost 18% since hitting a 52-week high of $72.79 in late July, giving up almost all of the ground it gained after the company fires its CEO and CFO in May. 
• Morgan Stanley’s Zack Sopcak says Molina is undergoing an ”extreme makeover” and sees the company “as being on the cusp of succeeding as the next MCO turnaround after bottoming out in 2Q.”
• (MCO = Managed Care Organization)

=Molina Healthcare (MOH) reported earnings on Wed 15 Feb 2017 (a/h)

LONG BEACH, Calif. (AP) _ Molina Healthcare Inc. (MOH) on Wednesday reported a fourth-quarter loss of $91 million, after reporting a profit in the same period a year earlier.

On a per-share basis, the Long Beach, California-based company said it had a loss of $1.64. Earnings, adjusted for non-recurring costs, came to 63 cents per share.

The results fell short of Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 75 cents per share.

The provider of Medicaid-related services posted revenue of $4.46 billion in the period, also falling short of Street forecasts. Six analysts surveyed by Zacks expected $4.52 billion.

For the year, the company reported profit of $8 million, or 14 cents per share. Revenue was reported as $17.71 billion.

Molina shares have increased 10 percent since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $59.89, a rise of 3 percent in the last 12 months.