Analyst Upgrades Molina Healthcare Stock, Touts Turnaround Efforts

Plus, MOH stock is sending up a historical 'buy' signal

Managing Editor
Jun 22, 2018 at 9:49 AM
facebook X logo linkedin

Molina Healthcare, Inc. (NYSE:MOH) stock is up 3.6% to trade at $102.24 and earlier this morning touched a fresh a record high of $102.47, after Jefferies upgraded the Medicaid solutions provider to "buy" from "hold," while adding it to its franchise picks list. The brokerage firm called Molina's turnaround effort "value-enhancing," and a "playbook that a rookie quarterback could execute." 

Molina stock is on track for its fifth straight win, and in the past 14 days has only closed in the red once. Earlier this month, the shares took a strong bounce off the supportive 40-day moving average. MOH has added over 30% in 2018, and could soon explore more record highs this summer, according to data from Schaeffer's Senior Quantitative Analyst Rocky White.

Specifically, the equity's Schaeffer's Volatility Index (SVI) of 25.8% ranks in the 2nd percentile of its annual range. Not only does this indicate short-term options are relatively cheap, from a volatility perspective, but following the last two times MOH stock has been trading within 2% of a 52-week high while near-term volatility was so low, it averaged a one-month gain of 9.76%, with both returns positive. 

Despite all of the bullish analyst attention this week -- the company also received a price-target hike to $105 from $94 at BMO on Tuesday -- brokerages are still split on the stock. Of the 11 brokerages covering the security, six rate it a "hold" or "sell." Furthermore, the equity's average 12-month price target of $99.92 sits just below its current perch. Should the security continue to vault up the charts, more upgrades and price-target hikes could provide tailwinds.

The healthcare name is also ripe for a short squeeze. Short interest increased by almost 27% in the two most recent reporting periods to 7.88 million shares. This represents nearly 16% of MOH's total available float, and more than eight days of pent up buying power, going by average daily volumes -- revealing plenty of buying power that could come in and lift the shares.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI