Molina Healthcare is an American healthcare company based in California. They arrange healthcare services for Medicaid beneficiaries in California, Washington, Utah and Michigan.

in 2011, Medical costs were lower than expected and healthcare operators’ benefits from this movement to increase their results. Medical services utilization is weaker than expected for the last quarters. The company recorded a 21 million dollars result for 2011 and expected 84 million dollars for fiscal year 2012. Turnover grew significantly since 2009, from 3.7 billion dollars to 5.9 expected next year.

Technically, the stock recorded a consolidation phase up to its USD 32 support after a strong bullish trend which allow it to raise by USD 14. Moving averages are well oriented and analysts are confident with a target price at USD 36.6.

Investors may take a buying position on the stock with a USD 36 objective. A stop loss will be engaged at USD 32.9, below the 20-days moving average.