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Molina Healthcare (MOH) Divests Arm to Streamline Business
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Molina Healthcare, Inc. (MOH - Free Report) recently announced the divestiture of its unit, Pathways Health and Community Support, LLC, to global private investment company, Atar Capital, LLC. The company sold this business for a nominal purchase price.
Molina Healthcare continues to concentrate on its core businesses for margin recovery and sustainability and this deal is just one of its strategic plans. The company identified Pathways, which provides national home and community-based human services, to be a non-core asset and thus, decided to sell it.
Notably, this buyout provides Atar Capital with a great opportunity to work in a critical and evolving segment of the healthcare industry. It believes that Pathways along with a team of experienced employees emerges as the perfect partner at a time when Americans are hugely suffering mental and behavioral illnesses.
Earlier this month, Molina Healthcare also divested its wholly owned subsidiary, Molina Medicaid Solutions (MMS), to DXC Technology. Proceeds of around $220 million from this deal would allow the company to invest in and focus on its core health plan business as well as execute its margin recovery program.
During the second quarter of 2017, Molina Healthcare took up a comprehensive restructuring and profitability improvement project, which aimed at streamlining its organizational structure to improve efficiency as well as lead to greater speed and better quality of decision-making process. By this year-end, the company plans to reduce annualized run-rate expenses by approximately $300-$400 million.
Shares of this Zacks Rank #1 (Strong Buy) company have skyrocketed 102.4%, outperforming the industry’s rise of 29.3%.
Other Stocks to Consider
Investors interested in the Medical HMO industry might also take a look at some other top-ranked stocks like WellCare Health Plans, Inc. , Anthem, Inc. and Humana Inc. (HUM - Free Report) .
WellCare offers managed care services for government-sponsored health care programs. With a Zacks Rank #2 (Buy), the company delivered an average four-quarter positive surprise of 53.89%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It holds a Zacks Rank of 2 and came up with an average four-quarter beat of 6.65%.
Humana operates as a health and well-being company in the United States. The company is a Zacks #2 Ranked player and pulled off an average four-quarter earnings surprise of 3.96%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Molina Healthcare (MOH) Divests Arm to Streamline Business
Molina Healthcare, Inc. (MOH - Free Report) recently announced the divestiture of its unit, Pathways Health and Community Support, LLC, to global private investment company, Atar Capital, LLC. The company sold this business for a nominal purchase price.
Molina Healthcare continues to concentrate on its core businesses for margin recovery and sustainability and this deal is just one of its strategic plans. The company identified Pathways, which provides national home and community-based human services, to be a non-core asset and thus, decided to sell it.
Notably, this buyout provides Atar Capital with a great opportunity to work in a critical and evolving segment of the healthcare industry. It believes that Pathways along with a team of experienced employees emerges as the perfect partner at a time when Americans are hugely suffering mental and behavioral illnesses.
Earlier this month, Molina Healthcare also divested its wholly owned subsidiary, Molina Medicaid Solutions (MMS), to DXC Technology. Proceeds of around $220 million from this deal would allow the company to invest in and focus on its core health plan business as well as execute its margin recovery program.
During the second quarter of 2017, Molina Healthcare took up a comprehensive restructuring and profitability improvement project, which aimed at streamlining its organizational structure to improve efficiency as well as lead to greater speed and better quality of decision-making process. By this year-end, the company plans to reduce annualized run-rate expenses by approximately $300-$400 million.
Shares of this Zacks Rank #1 (Strong Buy) company have skyrocketed 102.4%, outperforming the industry’s rise of 29.3%.
Other Stocks to Consider
Investors interested in the Medical HMO industry might also take a look at some other top-ranked stocks like WellCare Health Plans, Inc. , Anthem, Inc. and Humana Inc. (HUM - Free Report) .
WellCare offers managed care services for government-sponsored health care programs. With a Zacks Rank #2 (Buy), the company delivered an average four-quarter positive surprise of 53.89%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It holds a Zacks Rank of 2 and came up with an average four-quarter beat of 6.65%.
Humana operates as a health and well-being company in the United States. The company is a Zacks #2 Ranked player and pulled off an average four-quarter earnings surprise of 3.96%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>