Molina Healthcare (MOH) Plunges 8.40% Amid Legal Scrutiny and Earnings Woes

The share price of Molina Healthcare (MOH) fell to its lowest level since April 2025, with an intraday decline of 8.40% on November 11. The stock closed down 7.34%, marking a significant drop amid ongoing investor concerns over the company’s financial health.

The sell-off follows a series of earnings disappointments and legal challenges. Molina has repeatedly cut its full-year guidance, most recently reducing its 2025 forecast from $19 per share in July to $14 per share in October. The revisions were driven by underperformance in its marketplace segment and rising medical costs outpacing premium rates. These issues triggered a sharp price correction in October, with the stock falling nearly 18% after the third-quarter results. Legal actions have since emerged, alleging that the company misled investors by downplaying cost pressures and overstating financial stability during the February–July 2025 period.

Analysts highlight the growing dislocation between Molina’s revenue and expenses as a critical risk. The company’s reliance on reduced utilization of healthcare services—such as behavioral health and pharmacy care—has proven unsustainable, masking underlying cost trends. The ongoing lawsuits, seeking accountability for alleged misleading disclosures, add regulatory uncertainty. With legal deadlines approaching and a need to address systemic cost management issues, Molina faces a challenging path to restoring investor confidence and stabilizing its stock price.