UnitedHealth Group (NYSE:UNH) Shares Down 2.7% on Analyst Downgrade

UnitedHealth Group Incorporated (NYSE:UNH)’s share price traded down 2.7% during trading on Thursday after Mizuho lowered their price target on the stock from $430.00 to $350.00. Mizuho currently has an outperform rating on the stock. UnitedHealth Group traded as low as $266.29 and last traded at $268.5420. 12,703,984 shares changed hands during trading, an increase of 10% from the average session volume of 11,568,907 shares. The stock had previously closed at $275.92.

Several other equities analysts have also recently commented on the stock. Royal Bank Of Canada decreased their price target on shares of UnitedHealth Group from $408.00 to $361.00 and set an “outperform” rating for the company in a research report on Wednesday, January 28th. Deutsche Bank Aktiengesellschaft lowered UnitedHealth Group from a “buy” rating to a “hold” rating and set a $333.00 price target on the stock. in a research report on Wednesday, October 29th. JPMorgan Chase & Co. reduced their target price on shares of UnitedHealth Group from $425.00 to $389.00 and set an “overweight” rating on the stock in a report on Monday. Truist Financial decreased their price objective on shares of UnitedHealth Group from $410.00 to $370.00 and set a “buy” rating for the company in a research report on Monday. Finally, Jefferies Financial Group lowered their price objective on UnitedHealth Group from $418.00 to $340.00 and set a “buy” rating for the company in a research report on Wednesday, January 28th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, UnitedHealth Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $372.13.

UnitedHealth Group News Roundup

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

• Positive Sentiment: Bull-case / buy-the-dip analysis argues the selloff is overdone and highlights UNH’s long-term growth, management execution, AI-driven cost initiatives and insider buying as reasons to consider accumulating shares. UnitedHealth: Buy The Dip
• Positive Sentiment: Analyst consensus remains constructive — many services still rate UNH a buy/moderate buy, supporting the view that the company retains institutional support despite the selloff. Consensus Recommendation Moderate Buy
• Neutral Sentiment: Mizuho lowered its price target from $430 to $350 but kept an “outperform” rating — a signal that some analysts see medium-term upside even as near-term risk forces model changes. Mizuho Lowers PT
• Neutral Sentiment: UNH has been a focus of heavy investor searches and commentary this week, increasing volatility and trading volume as market participants reassess catalysts and risks. Investors Heavily Search UNH
• Neutral Sentiment: Corporate personnel note: Optum/UnitedHealth executive Terry Clark was appointed CEO at the PGA of America — a managerial move that is organizationally notable but not material to UNH fundamentals. Terry Clark PGA Appointment
• Negative Sentiment: Q4: UNH slightly beat EPS but reported rising medical costs, compressed margins and flagged Medicare reimbursement risk — coverage of the print says the beat couldn’t stop a sharp share decline as forward visibility worsened. Q4 Beat Can’t Stop the Slide
• Negative Sentiment: Regulatory risk: reports that UnitedHealth faces a Department of Justice probe and other regulatory questions have heightened uncertainty about future returns and the legal/regulatory outlook. DOJ Probe Report
• Negative Sentiment: Additional negative coverage and analyst commentary emphasize operational headwinds (reimbursement pressure, cost trends and a revenue miss vs. some expectations), reinforcing the near-term selloff narrative. More Bad News

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in UnitedHealth Group during the 2nd quarter worth $3,837,207,000. Capital Research Global Investors increased its holdings in UnitedHealth Group by 126.9% in the third quarter. Capital Research Global Investors now owns 13,042,049 shares of the healthcare conglomerate’s stock valued at $4,503,419,000 after buying an additional 7,293,009 shares during the last quarter. Berkshire Hathaway Inc acquired a new position in UnitedHealth Group in the second quarter worth $1,572,193,000. Dodge & Cox grew its holdings in shares of UnitedHealth Group by 117.7% during the second quarter. Dodge & Cox now owns 8,750,560 shares of the healthcare conglomerate’s stock valued at $2,729,912,000 after purchasing an additional 4,730,192 shares during the last quarter. Finally, Capital World Investors increased its holdings in shares of UnitedHealth Group by 18.8% in the 3rd quarter. Capital World Investors now owns 21,766,922 shares of the healthcare conglomerate’s stock worth $7,516,107,000 after acquiring an additional 3,439,182 shares during the period. 87.86% of the stock is owned by institutional investors and hedge funds.

UnitedHealth Group Stock Performance

The company has a market cap of $243.26 billion, a P/E ratio of 20.36, a PEG ratio of 1.31 and a beta of 0.41. The company has a 50 day moving average price of $328.16 and a 200-day moving average price of $323.39. The company has a quick ratio of 0.82, a current ratio of 0.79 and a debt-to-equity ratio of 0.72.

UnitedHealth Group (NYSE:UNH) last announced its earnings results 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. UnitedHealth Group had a return on equity of 14.79% and a net margin of 2.69%.The business had revenue of $113.22 billion during the quarter, compared to analysts’ expectations of $113.38 billion. During the same quarter last year, the business posted $6.81 earnings per share. The company’s quarterly revenue was up 12.3% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 17.750- EPS. Equities analysts expect that UnitedHealth Group Incorporated will post 29.54 EPS for the current fiscal year.

UnitedHealth Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Monday, December 8th were paid a dividend of $2.21 per share. The ex-dividend date of this dividend was Monday, December 8th. This represents a $8.84 annualized dividend and a dividend yield of 3.3%. UnitedHealth Group’s dividend payout ratio (DPR) is currently 67.02%.

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.