UnitedHealth Group (NYSE:UNH) Shares Down 1.1% Following Analyst Downgrade

UnitedHealth Group Incorporated (NYSE:UNH)’s stock price was down 1.1% during trading on Monday after Morgan Stanley lowered their price target on the stock from $411.00 to $409.00. Morgan Stanley currently has an overweight rating on the stock. UnitedHealth Group traded as low as $347.27 and last traded at $352.32. Approximately 8,055,367 shares traded hands during mid-day trading, an increase of 13% from the average daily volume of 7,159,791 shares. The stock had previously closed at $356.26.

A number of other research firms also recently commented on UNH. Bank of America boosted their price objective on shares of UnitedHealth Group from $350.00 to $390.00 and gave the stock a “neutral” rating in a report on Wednesday, October 8th. JPMorgan Chase & Co. upped their price target on UnitedHealth Group from $310.00 to $425.00 and gave the stock an “overweight” rating in a report on Thursday, October 9th. Leerink Partners set a $410.00 target price on UnitedHealth Group and gave the stock an “outperform” rating in a research report on Wednesday, October 29th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of UnitedHealth Group in a research note on Wednesday, January 21st. Finally, Evercore ISI raised shares of UnitedHealth Group to a “strong-buy” rating in a research note on Tuesday, January 6th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $386.33.

Key UnitedHealth Group News

Here are the key news stories impacting UnitedHealth Group this week:

• Positive Sentiment: Management beat Q4 EPS estimates and forecast 2026 adjusted profit roughly in line or slightly above street expectations, which supports near-term earnings visibility. UnitedHealth forecasts 2026 profit slightly above estimates
• Positive Sentiment: Capital-return programs remain intact: management expects continued buybacks and a secure dividend, which investors view as support during the pullback. Trump Triggers Buying Opportunity in UnitedHealth Group
• Neutral Sentiment: Revenue was up year-over-year but missed estimates by a small margin; the quarter included a $1.6B restructuring charge that depressed headline profit comparisons. Those are operational/one-time items that complicate near-term reads but could aid longer-term margin improvement. UnitedHealth Takes $1.6 Billion Hit To Earnings Amid Restructuring
• Neutral Sentiment: Management articulated a turnaround plan for Optum (exiting some markets and re-aligning provider contracts) — this could reduce costs long term but creates short-term execution risk and revenue disruption. For UnitedHealth’s Optum, It’s ‘Back To Basics’ With Smaller Footprint
• Negative Sentiment: The biggest driver of today’s sell-off: a CMS/administration proposal to keep Medicare Advantage reimbursement effectively flat (headline ~0.09%), which materially lowers 2027 payment expectations and directly pressures UnitedHealthcare revenue and margins. Trump Administration proposes keeping steady Medicare rates paid to insurers
• Negative Sentiment: UnitedHealth issued 2026 revenue guidance implying roughly a 2% decline — the first revenue drop in decades — which prompted steep headline selling and sector weakness. UnitedHealth forecasts first revenue drop in nearly four decades; shares plunge
• Negative Sentiment: Market impact and scrutiny: the stock plunged roughly 20%, dragging the Dow and prompting broader sector outflows; separate reports about a lawmaker’s UNH trade ahead of the news add regulatory/PR risk. UnitedHealth Stock Plunges 20%—Here’s What’s Driving the Huge Decline Congressman sold UNH stock weeks before Trump’s Medicare comments

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. LFA Lugano Financial Advisors SA purchased a new position in UnitedHealth Group during the second quarter worth about $25,000. Beacon Financial Strategies CORP acquired a new stake in shares of UnitedHealth Group in the fourth quarter worth approximately $26,000. Sagard Holdings Management Inc. acquired a new position in UnitedHealth Group during the second quarter worth approximately $29,000. Foster Dykema Cabot & Partners LLC boosted its holdings in shares of UnitedHealth Group by 69.4% in the 3rd quarter. Foster Dykema Cabot & Partners LLC now owns 83 shares of the healthcare conglomerate’s stock valued at $29,000 after purchasing an additional 34 shares during the last quarter. Finally, 1248 Management LLC acquired a new stake in shares of UnitedHealth Group during the 3rd quarter worth $29,000. Hedge funds and other institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Stock Down 19.7%

The stock has a market cap of $255.74 billion, a price-to-earnings ratio of 14.74, a PEG ratio of 2.12 and a beta of 0.42. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.71. The stock has a fifty day moving average of $332.08 and a two-hundred day moving average of $323.81.

UnitedHealth Group (NYSE:UNH) last released its quarterly earnings data on Tuesday, January 27th. The healthcare conglomerate reported $2.11 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.02. The business had revenue of $113.22 billion for the quarter, compared to analyst estimates of $113.38 billion. UnitedHealth Group had a return on equity of 19.23% and a net margin of 4.04%.The company’s revenue was up 12.3% compared to the same quarter last year. During the same period in the previous year, the company posted $6.81 EPS. UnitedHealth Group has set its FY 2026 guidance at 17.750- EPS. As a group, analysts predict that UnitedHealth Group Incorporated will post 29.54 EPS for the current fiscal year.

UnitedHealth Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Monday, December 8th were paid a $2.21 dividend. This represents a $8.84 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Monday, December 8th. UnitedHealth Group’s dividend payout ratio (DPR) is currently 46.14%.

About UnitedHealth Group

UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.

UnitedHealthcare is the company’s benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.