Michael Burry’s Top Holdings Were Gaining While NVDA Was Crashing

5. Molina Healthcare, Inc. (NYSE:MOH)

Portion of portfolio: 9.39%

Value of holdings: $7,276,250

Molina Healthcare, Inc. (NYSE:MOH), is a provider of affordable healthcare with a focus on low-income populations via Medicaid, Medicare and Marketplace programs as well as state insurance marketplaces.

Burry cut its holdings of Molina by 17% sequentially to 25,000 of its shares.

Molina’s fourth quarter results fell short of both the company’s and analysts’ projections, primarily due to greater-than-expected care usage among its members. Total operating expenses grew by 7.6% year over year to $8.7 billion. However, the company’s Healthcare premium revenues totaled $8.4 billion,  up by 5.6% year over year. Net income totaled $255 million, up 6.3% over the same period. Total membership declined 5% year-over-year to roughly 5.5 million as of December 31, 2023.

Molina stock saw a post-earnings announcement drift on February 5. After the market close on March 11, the stock traded at $324.81 per share. Year-to-date the company’s stock has gained 11.6% in value. Molina has a market capitalization of $18.027 billion.

Molina, which remains one of Michael Burry’s top portfolio holdings continues its focus on a growth strategy including organic growth, winning new state contracts and acquisitions, with ConnectiCare purchase being the most recent, effective February 1, 2025. The management expects Molina to meet its target of $42 billion in premium revenues for 2025 and $46 billion in 2026. The company plans to issue $500 million in senior notes due in 2033, with the proceeds going toward general business operations.

Cantor Fitzgerald’s reiterated its Overweight rating on Molina stock with a price target of $356 suggesting confidence in the company’s market position as it navigates the complexities of state-level healthcare regulations, according to Investing.com.

Truist cut the firm’s price target to $340 from $370 on Molina stock while keeping a Buy rating, according to MarketScreener.