Michael Burry Bets on Molina Healthcare Amidst Insurer Turmoil
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Strategic Shift: In Q3 2025, Burry liquidated his stake in UnitedHealth Group and heavily invested in Molina Healthcare, demonstrating his unique insights into the healthcare insurance market amid rising medical costs and regulatory pressures.
- Market Reaction: Despite Molina's 8% drop on Tuesday, it fared better than UnitedHealth's 19% and Humana's 21% declines, indicating its relative resilience and reflecting Burry's confidence in its future performance.
- Revenue Structure Advantage: Burry noted that approximately 75% of Molina's revenue is tied to Medicaid rather than Medicare, allowing it to remain profitable while competitors struggle, showcasing its unique competitive edge in the industry.
- Acquisition Potential: Burry views Molina as a prime acquisition target, stating that if he had enough capital, he would buy the entire company, indicating his confidence in its long-term growth potential, which he believes surpasses even tech giants like Apple.
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Analyst Views on MOH
Wall Street analysts forecast MOH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MOH is 180.85 USD with a low forecast of 155.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
9 Hold
2 Sell
Hold
Current: 187.000
Low
155.00
Averages
180.85
High
250.00
Current: 187.000
Low
155.00
Averages
180.85
High
250.00
About MOH
Molina Healthcare, Inc. is a provider of managed healthcare services under the Medicaid and Medicare programs, and through the state insurance marketplaces. The Company operates through four segments: Medicaid, Medicare, Marketplace and Other. The Medicaid, Medicare, and Marketplace segments represent the government-funded or sponsored programs under which it offers managed healthcare services. Medicaid provides healthcare and long-term services and support to low-income Americans. Medicare is a federal program that provides eligible persons aged 65 and over, and some disabled persons, with a variety of hospital, medical insurance, and prescription drug benefits. The Marketplace insurance exchanges allow individuals and small groups to purchase federally subsidized health insurance. It arranges healthcare services for its members through contracts with a network of providers, including independent physicians and physician groups, hospitals, ancillary providers, and pharmacies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Michael Burry Bets on Molina Healthcare Amidst Insurer Turmoil
- Strategic Shift: In Q3 2025, Burry liquidated his stake in UnitedHealth Group and heavily invested in Molina Healthcare, demonstrating his unique insights into the healthcare insurance market amid rising medical costs and regulatory pressures.
- Market Reaction: Despite Molina's 8% drop on Tuesday, it fared better than UnitedHealth's 19% and Humana's 21% declines, indicating its relative resilience and reflecting Burry's confidence in its future performance.
- Revenue Structure Advantage: Burry noted that approximately 75% of Molina's revenue is tied to Medicaid rather than Medicare, allowing it to remain profitable while competitors struggle, showcasing its unique competitive edge in the industry.
- Acquisition Potential: Burry views Molina as a prime acquisition target, stating that if he had enough capital, he would buy the entire company, indicating his confidence in its long-term growth potential, which he believes surpasses even tech giants like Apple.
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- Nasdaq Performance Strong: The Nasdaq 100 index increased by 0.88%, reaching a 2.75-month high, indicating investor optimism in AI infrastructure and semiconductor sectors, which propelled the broader market higher.
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