<- Go home

Added to YB: 2024-11-01

Pitch date: 2024-10-30

MOH [neutral]

Molina Healthcare, Inc.

-8.98%

current return

Author Info

No bio for this author

Company Info

Molina Healthcare, Inc. provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces.

Market Cap

$16.9B

Pitch Price

$325.29

Price Target

N/A

Dividend

N/A

Sector

Health Care Providers and Services

Category

special_situation

Betting big on PSU's

MOH (PSU grants): CEO/CFO get large PSUs ($50.6M/$17.5M) tied to 2027 EPS. Unusual timing/size vs. historic grants. 4 scenarios: 1) Easy target 2) Rosier outlook 3) Debt-funded M&A/buybacks 4) Sale clause. Trades 13.5x 2024E vs peers 10-20x. Execs likely see stock as cheap, EPS target achievable. Caution: misaligned incentives.

Read full article (3 min)