By “Big Short” investor Michael Burry has turned his attention to Molina Healthcare (NYSE: MOH).
According to him, the managed care firm could be a takeover target in 2026, likening it to Warren Buffett’s legendary investment in Geico.
In his latest Substack post, Burry praised MOH for disciplined operations and Medicaid resilience, even as peers face mounting losses.
Moline Healthcare stock popped as much as 5% today – but is still trading at roughly half its price in early April.
Why a takeover would be positive for Molina Healthcare stock
A potential acquisition of Molina Healthcare would likely unlock significant value for its shareholders.
According to Michael Burry, the company’s strong fundamentals, including consistent underwriting results and expense discipline, make it attractive to larger peers seeking profitable growth.
“Moline is looking to make money (albeit less money) in Medicaid next year – while most of its competition loses money,” he wrote.
That positioning could entice buyers who want exposure to Medicaid markets without inheriting the losses plaguing rivals.
A takeover would not only validate the firm’s strategy but also provide MOH stock investors with a premium over current trading levels, reinforcing confidence in its long-term prospects.
Can MOH shares push higher without a takeover in 2026?
Even without a buyout, Molina Healthcare shares have the ingredients for a strong 2026.
Despite steady revenue growth and disciplined cost management, the company is currently trading at an attractive price-to-sales (P/S) ratio of approximately 0.22x.
MOH’s focus on Medicaid and Medicare Advantage offers a stable earnings base, while its broader commitment to enterprise efficiency is keeping margins resilient.
Molina has halted unprofitable ventures and doubled down on its core managed-care operations – reinforcing that executives are prioritizing sustainable profitability.
With annual revenues exceeding $40 billion and consistent cash flow generation, MOH can rally on its own merits, offering investors upside independent of takeover speculation.
Michael Burry’s bullish call adds fuel to the fire
Burry’s endorsement has reignited interest in Molina Healthcare Inc., but irrespective of a potential takeover, the company’s fundamentals remain compelling.
Investors now have two possible paths to future gains: a buyout that delivers immediate premium, or organic growth driven by operational discipline and Medicaid resilience.
For shareholders, what it simply means is that MOH shares are positioned to be a winner in 2026 – and Wall Street analysts seem to agree with that narrative.
At the time of writing, the consensus rating on Molina Healthcare sits at “hold” only, according to Barchart, but the price targets go as high as $200, indicating potential upside of another 16% from here.
That said, unlike some of its larger peers, the insurer doesn’t currently pay a dividend. Therefore, it remains rather unattractive for income-focused investors heading into the new year.
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