Wells Fargo has downgraded Molina Healthcare to Equal Weight and lowered its price target to $141, citing concerns over Medicaid-related risks, overly optimistic guidance, and recent weak results.
Molina Healthcare shares drop 29% after forecasting 2026 earnings at $5/share vs. Wall Street's $13.71 estimate, while exiting Medicare Part D amid rising medical costs.
Trump's CMS proposes minimal 0.09% Medicare payment increase for 2027, far below Wall Street's 4-6% expectations, while eliminating controversial billing practices.
Big Short investor Michael Burry sees Molina Healthcare as today's Geico, calling it undervalued with strong fundamentals despite 43% stock decline in 2025.
Over 20 million Americans face sharply higher health insurance costs after the Senate rejected both Republican and Democratic plans to extend expiring Affordable Care Act tax credits.
Health insurance stocks dropped during pre-market trading after President Trump criticized insurers on social media and proposed providing direct subsidies to consumers instead of ACA tax credits.
