$MOH

Argus raised its target price for Molina Healthcare Inc (MOH) to $205.00. The company provides Medicaid-focused healthcare plans for low-income individuals and families.

Vice President JD Vance announced 760,000 ACA enrollees were dropped due to fraud, with 400,000 under review. Insurers like Centene, Molina, Elevance, and UnitedHealth saw stock declines. Experts warn of squeezed margins in 2026-2027 due to a less healthy risk pool. Premium rates for 2027 are locked, and insurers may push for higher 2028 rates. Brokers, who drive 75% of sign-ups, face new restrictions and potential reputational damage.

A crackdown on Obamacare by the Trump administration may raise costs for US consumers and insurers. 760,000 enrollees were removed for suspected fraud, with 400,000 under review. This could impact insurers like UnitedHealth and Centene, as a sicker mix of patients may reduce profits. Shares of health insurers fell following the announcement.

Jefferies reports Medicaid enrollment attrition rose to 0.5% in August 2026, exceeding the 2026 monthly average of 0.3%. Humana showed flat enrollment, while other MCOs like Centene, Elevance Health, Molina, and UnitedHealth are expected to report lower Q3 attrition. State policy changes contributed to enrollment churn, with Jefferies noting a morbidity shift due to disenrollment.

Molina Healthcare (MOH) will end its traditional Medicare Advantage prescription drug plans by December 31, 2026, affecting about 80,000 members. The company announced this decision in February 2026, but members were notified in October. Members must choose a new plan by December 7, 2026, to avoid losing coverage and potential penalties. Molina will retain its dual-eligible Medicare business, which generated $5 billion in 2025.

Wealthfront (WLTH) shares rose 6.6% to $10.08 after reporting Q2 earnings of $0.10 per share, beating estimates. Other stocks gaining include Orchestra BioMed (OBIO) +8.4%, AeroVironment (AVAV) +7.2%, and Molina Healthcare (MOH) +6.1%.

Progyny (PGNY) and other health insurers reported Q2 earnings, with revenues beating estimates by 2.8% but guidance below expectations. PGNY's revenue grew 5.3% YoY, missing EBITDA guidance. CVS Health (CVS) reported 7.3% YoY revenue growth, beating estimates. Molina Healthcare (MOH) saw a 4.8% YoY revenue decline. Alignment Healthcare (ALHC) grew 31.6% YoY, while Clover Health (CLOV) saw 55.6% YoY growth. Stocks have declined since earnings, except CLOV, which rose 4.3%.

Centene (CNC) and Oscar Health (OSCR) shares rose 6% and 12% respectively after Baird reported favorable risk adjustment results. Baird noted the outcomes support Centene's Q4 commentary and align with Oscar's June investor conference remarks. Molina (MOH) shares also rose 2% despite a minor negative impact. The Centers for Medicare & Medicaid Services released final 2025 risk adjustment data on June 30, affecting insurers' earnings.

Michael Burry, known for his 'Big Short' bet, disclosed August trades including long positions in MercadoLibre (MELI), Zoetis (ZTS), Lululemon (LULU), and Molina Healthcare (MOH), and short positions in Palantir (PLTR), Nvidia (NVDA), and others. Nine of his 17 long holdings rose, with Veeva (VEEV) up 35.8%, while his short bets faced pressure as AI stocks rallied, with Palantir up 51.4%. Burry adjusted his portfolio, raising cash and managing risk.

CVS Health (CVS) reported $106.1B revenue, up 7.3% YoY, beating estimates. UnitedHealth (UNH) reported $112B revenue, flat YoY, also beating estimates. Progyny (PGNY) reported $350.5M revenue, up 5.3% YoY, missing guidance. Molina Healthcare (MOH) reported $10.87B revenue, down 4.8% YoY, missing guidance. All stocks have declined since earnings.