Molina (MOH) Shares Sink as Loss of Ohio Contract Will Cut Into Profits
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Shares of Molina Healthcare (NYSE: MOH) are getting absolutely smashed Monday following news over the weekend regulators in Ohio did not renew a contract for the company to manage some 1.5 million patients within the state's Medicaid program.
The stock last traded at $26.40, down nearly 25 percent from Thursday's closing price. This morning's decline has erased nearly $400 million in market cap for Molina.
Molina's contract for local health plans in Ohio will expire at the end of this year. As a Bloomberg story from this morning noted, Ohio made up about 22 percent of Molina's sales and 30 percent of net income in its latest quarter.
Elsewhere in the sector: Centene (NYSE: CNC) shares are down about 14 percent, WellCare (NYSE: WCG) shares are down nearly 7 percent, and shares of AMERIGROUP (NYSE: AGP) are down 5.6 percent.
The stock last traded at $26.40, down nearly 25 percent from Thursday's closing price. This morning's decline has erased nearly $400 million in market cap for Molina.
Molina's contract for local health plans in Ohio will expire at the end of this year. As a Bloomberg story from this morning noted, Ohio made up about 22 percent of Molina's sales and 30 percent of net income in its latest quarter.
Elsewhere in the sector: Centene (NYSE: CNC) shares are down about 14 percent, WellCare (NYSE: WCG) shares are down nearly 7 percent, and shares of AMERIGROUP (NYSE: AGP) are down 5.6 percent.
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