Reaction to Analyst Target Price Milestone
Investors in Molina Healthcare Inc (Symbol: MOH) witnessed a notable event in recent trading as the stock surpassed the average analyst 12-month target price of $412.58, trading at $419.53/share. When a stock achieves such a milestone, analysts typically find themselves at a crossroads: adjust their target upwards in light of favorable business developments propelling the price, or downgrade based on valuation concerns.
Range of Analyst Targets
Within the Zacks coverage universe, Molina Healthcare Inc commands a set of 12 different analyst targets, contributing to the aforementioned average. Yet, beneath this average line are analysts with diverging views; from a conservative $357.00 per share target to a bullish high of $460.00. The standard deviation stands at $30.431, demonstrating the breadth of opinion among analysts.
Insight into the “Wisdom of Crowds”
Examining the average target price is akin to tapping into a “wisdom of crowds” mentality, amalgamating the insights of multiple experts rather than relying on a singular opinion. With MOH soaring above the $412.58/share average target, investors are prompted to reevaluate their stance on the company. Is $412.58 just a pit stop on the journey towards a loftier target, or could the stock be overvalued, warranting a cautious approach?
Analyst Ratings Breakdown
| Recent MOH Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 6 | 6 | 5 | 5 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 7 | 6 | 5 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 1 | 1 |
| Average rating: | 2.08 | 2.0 | 2.27 | 2.27 |
The average rating, portrayed in the table above on a scale of 1 to 5, with 1 reflecting a Strong Buy and 5 indicating a Strong Sell. This data has been sourced from Zacks Investment Research via Quandl.com.
For further insights, explore the Top 25 Broker Analyst Picks of the S&P 500.
For additional reference:
HIFS shares outstanding history
ACDI shares outstanding history
CIU YTD Return
Please note that the expressed views and opinions belong to the author alone and do not necessarily mirror those of Nasdaq, Inc.
