Redwood Capital Management bought some shares of Molina Healthcare. Fifty-one thousand, six hundred of them, to be precise. About $8.5 million worth. It’s a strange thing, isn’t it? All this money moving around, like dust motes in a sunbeam. So it goes.
What Happened
Redwood, they increased their stake in Molina during the last quarter. Added those shares. The whole thing came to about $8.5 million, calculated using the average price. They now hold 110,000 shares, worth around $19.1 million. The net change, factoring in price swings, was about $7.9 million. Numbers. They mean something, I suppose.
What Else To Know
- This purchase makes Molina about 2% of Redwood’s reported U.S. equity holdings. A small slice of the pie, really.
- Here’s what Redwood likes, besides Molina:
- NASDAQ: SATS: $246.51 million
- NYSE: AER: $187.59 million
- NYSE: GBTG: $164.12 million
- As of Wednesday, Molina shares were trading at $148.79. Down 53% over the last year. A real drubbing. The S&P 500, meanwhile, is up 19%. Life isn’t fair, is it?
Company Overview
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $148.79 |
| Market Capitalization | $7.7 billion |
| Revenue (TTM) | $45.43 billion |
| Net Income (TTM) | $472.00 million |
Company Snapshot
- Molina Healthcare provides managed healthcare, mostly through Medicaid, Medicare, and those state insurance marketplaces. They get their money from the government and premiums.
- They serve people with limited incomes, individuals, and those on government programs. A lot of people, actually.
- They use a capitated payment structure. It’s complicated, but it’s supposed to control costs. They serve about 5.1 million members.
Molina is a big provider of healthcare services, focused on government programs. They try to be efficient and provide tailored solutions for people who need them. A noble goal, perhaps. So it goes.
What This Transaction Means For Investors
They made over $45 billion in revenue last year, but profits fell sharply. Higher medical costs and some tricky contracts are to blame. Earnings per share came in at just over $11, down from $22.65 the year before. The fourth quarter was a loss. These things happen.
What’s interesting is how Molina fits into Redwood’s portfolio. Most of their holdings are high-growth, volatile stocks. Molina is more defensive, tied to Medicaid and government programs. The market is already pricing in a tough 2026, with revenue expected to fall 2% and earnings per share around $5. But if costs ease and things improve, this could be a turnaround story. Maybe. It’s always a gamble, isn’t it?
As a dividend hunter, I see a company that could become interesting if it rights its ship. A lower price now might offer a decent entry point for those patient enough to wait. But remember, there are no guarantees. None at all. So it goes.
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2026-03-18 21:53