UnitedHealth Group (NYSE:UNH) Shares Up 4% After Earnings Beat

UnitedHealth Group Incorporated (NYSE:UNH)’s stock price traded up 4% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $294.94 and last traded at $294.0820. 23,208,502 shares traded hands during trading, an increase of 103% from the average session volume of 11,418,140 shares. The stock had previously closed at $282.70.

The healthcare conglomerate reported $2.11 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.02. UnitedHealth Group had a net margin of 2.69% and a return on equity of 14.79%. The business had revenue of $113.22 billion for the quarter, compared to analysts’ expectations of $113.38 billion. During the same quarter last year, the firm earned $6.81 EPS. The firm’s revenue for the quarter was up 12.3% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 17.750- EPS.

UnitedHealth Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Monday, December 8th were issued a $2.21 dividend. The ex-dividend date was Monday, December 8th. This represents a $8.84 annualized dividend and a dividend yield of 3.0%. UnitedHealth Group’s dividend payout ratio is currently 67.02%.

Key Stories Impacting UnitedHealth Group

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

• Positive Sentiment: Market and analyst support — Several firms kept buy/overweight ratings or reiterated long-term confidence after the Q4 release, arguing the sell-off may be overdone and highlighting UnitedHealth’s underlying margin initiatives and long-term fundamentals. UnitedHealth Q4 Earnings Review: The Selloff Looks Overdone After Results
• Positive Sentiment: Short-term rebound in ETFs — Healthcare ETFs and related funds moved as UNH bounced (~4% at one point) on a mixed Q4 print plus commentary that 2026 cost trends could improve, which likely supported intraday buying from funds and momentum traders. Healthcare ETFs in Focus as UnitedHealth Rises 4% Post Mixed Q4 Results
• Neutral Sentiment: Modest analyst target tweaks — Morgan Stanley trimmed its price target slightly to $409 but kept an Overweight rating, signaling stabilized expectations rather than a wholesale shift in conviction. This is a modest signal versus outright downgrades. UnitedHealth (UNH) Sees Modest Target Cut at Morgan Stanley as Outlook Stabilizes
• Negative Sentiment: Large put-option activity — Unusually high put buying (376,697 contracts, +131% vs. typical volume) indicates elevated downside hedging or speculative bearish positioning, increasing near-term downside pressure on the stock.
• Negative Sentiment: Analyst price-target cuts — Multiple firms reduced targets (examples: Jefferies to $340, Leerink to $345, Oppenheimer to $385, RBC to $361, UBS trimmed targets), which amplifies pessimism around near-term earnings/guidance and contributes to downward momentum.
• Negative Sentiment: Guidance & Medicare payment shock — The main catalyst for the rout was a cautious FY2026 outlook and disappointing Medicare Advantage payment updates; investors marked the company down sharply on lower-than-expected forward cash/earnings visibility. UnitedHealth (UNH) Loses 19.6% on Weak Outlook, Medicare Payment Update
• Negative Sentiment: Political stock sales & market-cap hit — Reports of politicians selling UNH before the crash and headlines about a $50–99 billion market-cap loss have heightened scrutiny and negative sentiment, which can prolong volatility. These 3 U.S. politicians suspiciously dumped UnitedHealth stock weeks before crash
• Negative Sentiment: Bearish commentary and “trap” warnings — Multiple op-eds and analyst notes argue the recovery may take time or that buying the dip could be a trap; that negative narrative is pressuring demand for the stock in the near term. UnitedHealth: Buying The Dip Could Be A Trap

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on UNH shares. Sanford C. Bernstein restated an “outperform” rating on shares of UnitedHealth Group in a research note on Wednesday. Barclays boosted their price objective on UnitedHealth Group from $386.00 to $391.00 and gave the stock an “overweight” rating in a research report on Monday, January 5th. Leerink Partners lowered their target price on UnitedHealth Group from $410.00 to $345.00 and set an “outperform” rating on the stock in a research note on Wednesday. Jefferies Financial Group reduced their price target on shares of UnitedHealth Group from $418.00 to $340.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, Zacks Research upgraded shares of UnitedHealth Group from a “strong sell” rating to a “hold” rating in a research note on Monday, October 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $380.67.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of UNH. LFA Lugano Financial Advisors SA bought a new stake in shares of UnitedHealth Group during the 2nd quarter valued at $25,000. Beacon Financial Strategies CORP bought a new stake in shares of UnitedHealth Group during the fourth quarter valued at about $26,000. Foster Dykema Cabot & Partners LLC boosted its position in shares of UnitedHealth Group by 69.4% in the third quarter. Foster Dykema Cabot & Partners LLC now owns 83 shares of the healthcare conglomerate’s stock valued at $29,000 after acquiring an additional 34 shares during the period. 1248 Management LLC bought a new stake in UnitedHealth Group during the 3rd quarter worth approximately $29,000. Finally, Holos Integrated Wealth LLC purchased a new position in shares of UnitedHealth Group during the 4th quarter valued at $29,000. 87.86% of the stock is currently owned by hedge funds and other institutional investors.

UnitedHealth Group Stock Down 0.6%

The stock has a 50-day moving average of $331.39 and a 200-day moving average of $323.38. The company has a quick ratio of 0.82, a current ratio of 0.79 and a debt-to-equity ratio of 0.72. The company has a market cap of $264.69 billion, a PE ratio of 22.15, a P/E/G ratio of 1.75 and a beta of 0.42.

UnitedHealth Group Company Profile

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.