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Molina Healthcare (MOH) to Buy My Choice Wisconsin for $150M
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Molina Healthcare, Inc. (MOH - Free Report) recently announced that it has agreed to acquire the Medicaid managed care organization My Choice Wisconsin. MOH is expected to buy all of My Choice Wisconsin’s assets for $150 million.
The acquiree has a vast presence in Wisconsin with 22 years of serving managed long-term services and supports populations or MLTSS. My Choice Wisconsin has served more than 44,000 MLTSS and core Medicaid members as of May 2022. Hence, the acquisition is expected to boost Molina Healthcare’s footprint in the region. The company expects the buyout to complement its existing Medicaid business in the state.
The acquisition is likely to be immediately accretive to MOH’s bottom line. The deal is expected to close this year. In the trailing 12-month period ending Mar 31, the acquiree organization generated $1 billion in premium revenues. The latest move highlights Molina Healthcare’s strong inorganic growth strategy. These buyouts boost the company's portfolio and diversify income. In early 2022, Molina Healthcare closed the acquisition of Texas Medicaid and Medicare-Medicaid Plan contracts and specific operating assets of Cigna Corporation (CI - Free Report) for $60 million in cash.
The company also closed other buyouts, such as the Magellan Complete Care line of business, YourCare and Passport, which led to membership growth. Molina Healthcare acquired AgeWell’s managed long-term care business in New York, which is likely to close in the third quarter of 2022. Molina funded the Texas assets acquisition from Cigna with cash on hand. It is expected to take a similar step with the My Choice Wisconsin acquisition.
Molina Healthcare’s strong balance sheet enables it to execute strategic acquisitions. Its cash and cash equivalents rose to $4.8 billion in the first quarter-end from $4.4 billion in 2021-end. Long-term debt at the first quarter-end was only $2.2 billion. Its strong balance sheet provides robust financial flexibility.
Price Performance
MOH shares have jumped 8.5% in the past month compared with the 11.1% increase of the industry.
The Zacks Consensus Estimate for Progyny’s 2022 bottom line has improved 11.8% in the past 60 days. PGNY has witnessed one upward estimate revision during the same period against none in the opposite direction.
Progyny’s earnings beat estimates in each of the last four quarters, the average being 169.7%.
The Zacks Consensus Estimate for Altimmune’s 2022 bottom line indicates an 8.2% improvement from the 2021 levels. ALT has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
Altimmune’s earnings beat estimates in three of the last four quarters and missed on the remaining occasion.
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Molina Healthcare (MOH) to Buy My Choice Wisconsin for $150M
Molina Healthcare, Inc. (MOH - Free Report) recently announced that it has agreed to acquire the Medicaid managed care organization My Choice Wisconsin. MOH is expected to buy all of My Choice Wisconsin’s assets for $150 million.
The acquiree has a vast presence in Wisconsin with 22 years of serving managed long-term services and supports populations or MLTSS. My Choice Wisconsin has served more than 44,000 MLTSS and core Medicaid members as of May 2022. Hence, the acquisition is expected to boost Molina Healthcare’s footprint in the region. The company expects the buyout to complement its existing Medicaid business in the state.
The acquisition is likely to be immediately accretive to MOH’s bottom line. The deal is expected to close this year. In the trailing 12-month period ending Mar 31, the acquiree organization generated $1 billion in premium revenues. The latest move highlights Molina Healthcare’s strong inorganic growth strategy. These buyouts boost the company's portfolio and diversify income. In early 2022, Molina Healthcare closed the acquisition of Texas Medicaid and Medicare-Medicaid Plan contracts and specific operating assets of Cigna Corporation (CI - Free Report) for $60 million in cash.
The company also closed other buyouts, such as the Magellan Complete Care line of business, YourCare and Passport, which led to membership growth. Molina Healthcare acquired AgeWell’s managed long-term care business in New York, which is likely to close in the third quarter of 2022. Molina funded the Texas assets acquisition from Cigna with cash on hand. It is expected to take a similar step with the My Choice Wisconsin acquisition.
Molina Healthcare’s strong balance sheet enables it to execute strategic acquisitions. Its cash and cash equivalents rose to $4.8 billion in the first quarter-end from $4.4 billion in 2021-end. Long-term debt at the first quarter-end was only $2.2 billion. Its strong balance sheet provides robust financial flexibility.
Price Performance
MOH shares have jumped 8.5% in the past month compared with the 11.1% increase of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Molina Healthcare currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the medical space are Progyny, Inc. (PGNY - Free Report) and Altimmune, Inc. (ALT - Free Report) . While Progyny currently sports a Zacks Rank #1 (Strong Buy), Altimmune carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Progyny’s 2022 bottom line has improved 11.8% in the past 60 days. PGNY has witnessed one upward estimate revision during the same period against none in the opposite direction.
Progyny’s earnings beat estimates in each of the last four quarters, the average being 169.7%.
The Zacks Consensus Estimate for Altimmune’s 2022 bottom line indicates an 8.2% improvement from the 2021 levels. ALT has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
Altimmune’s earnings beat estimates in three of the last four quarters and missed on the remaining occasion.