TPG just bought into the exact Optum clinics that derailed UnitedHealth's profits, and management is hours away from reaffirming guidance that could either validate the deal or reopen a wound investors hoped was healing.
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UnitedHealth Group (NYSE:UNH | UNH Price Prediction) stock is down 3% to $388.58 in early Wednesday trading after Bloomberg reported the company sold an interest in part of its Florida WellMed primary-care clinics. The 3% slide comes even as UnitedHealth stock is still up 15% year to date, and it lands hours before management is set to reaffirm full-year 2026 financial guidance at an investor conference, according to UnitedHealth Group.
TPG (NASDAQ:TPG) is the buyer. The Fort Worth alternative asset manager ended Q2 2026 with $326.8 billion in assets under management and $76.2 billion in available capital, and its Capital and Healthcare Partners platforms have been active in senior-care buyouts.
WellMed sits inside Optum Health, the value-based care unit whose stumbles drove UnitedHealth’s ongoing turnaround. The reaction today looks company-specific rather than sector-wide, and that framing matters for anyone reading through from UnitedHealth into the broader managed-care group.
Selling a Piece of the Problem Child Bloomberg reported Tuesday evening that UnitedHealth sold an interest in some of its Optum Health operations in Florida to TPG, centered on WellMed’s senior primary-care clinics. Terms weren’t disclosed, which leaves investors valuing a transaction with no headline dollar figure attached to it.
Chief Financial Officer Wayne DeVeydt told Bloomberg, “We didn’t need the dollars, we have the dollars to invest, but we needed the focus and somebody that could actually work with us locally.” He described the arrangement as a way to grow the clinic footprint faster than UnitedHealth could on its own while it executes a wider reset.
DeVeydt also told the outlet that Optum Health margins will reach 2% this year, ahead of prior expectations, and he guided to 4% next year. That trajectory matters because Optum Health was the source of last year’s disappointing profit and the reason the company replaced its chief executive and other senior leaders.
UnitedHealth reported Optum Health revenue of $23.47 billion in Q2 2026, down 5% year over year (YoY) as the unit shed 700,000 value-based care patients. The WellMed carve-in gives Optum a well-capitalized operating partner and hands TPG a foothold in Medicare-focused primary care during a stretch when the sector’s economics remain contested.
Sector Barely Flinches The Health Care Select Sector SPDR ETF (NYSEARCA:XLV) is down 0.4% to $166.44, a fraction of UnitedHealth’s move and a sign the story isn’t reading as a broader healthcare selloff. UnitedHealth is a top-five weight in the fund at 6.57% of net assets, so a heavier sector drop would be showing up if the news were spilling into the group.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.35% to $763.31, so the broad tape is merely soft. Managed-care peers Elevance Health (NYSE:ELV), Cigna (NYSE:CI), and Humana (NYSE:HUM) aren’t posting a matching drop, which reinforces that today’s move is UnitedHealth-specific.
The tension is philosophical. A turnaround company is selling a slice of the exact division that caused the damage, and readers can view that as discipline or as retreat. Without transaction terms, both interpretations have room to breathe.
What to Watch DeVeydt said UnitedHealth expects to reaffirm its financial guidance at an investor conference hosted by Wells Fargo (NYSE:WFC). That reaffirmation is the more meaningful near-term catalyst, since the July update lifted UnitedHealth’s full-year adjusted EPS guidance to $19.50 to $20 and raised the company’s operating cash flow outlook to $24 billion.
Analyst consensus for UnitedHealth’s full-year 2026 adjusted EPS sits at $19.81, inside management’s raised range, and the 2027 consensus sits at $22.44. A clean reaffirmation would keep those numbers intact, while any hedging language on Optum Health could reopen the debate the WellMed deal is trying to settle.
Investors could look for signs that UnitedHealth’s management ties the WellMed partnership to specific clinic growth targets or Optum margin milestones on stage. Position sizing on one’s UnitedHealth stock exposure may deserve a fresh look given today’s gap between the stock and its sector fund.
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Buy UnitedHealth (UNH). The partial sale of Optum Health Florida/WellMed to TPG brings growth capital, reduces capex burden, and helps de-risk margins in a Medicare Advantage pressure zone while UNH keeps upside via its remaining stake. That combination supports steadier free cash flow and buybacks while management focuses on underwriting and higher-margin OptumRx/tech.
Key Risk: Optum’s Florida clinic economics keep deteriorating (higher medical costs/poor execution), so the deal doesn’t stabilize margins and the retained stake underperforms.
OptumRx/tech momentum buy
Buy UnitedHealth’s “quality earnings” exposure via Optum-linked upside: add to UNH specifically for the rotation toward OptumRx and Optum Insight tech scaling. The TPG partnership frees management attention and capital, making it more likely OptumRx/tech growth offsets care-delivery margin drag.
Key Risk: Regulatory or reimbursement changes hit OptumRx/tech growth (or tech adoption slows), so capital reallocation fails to lift consolidated margins.
UnitedHealth UNH stock is inching lower after the healthcare giant confirmed the sale of a partial stake in its Optum Health Florida primary-care clinic network, including WellMed operations, to private equity firm TPG.
The transaction allows UNH to bring in strategic growth capital while maintaining an equity interest in the regional clinic footprint.
Note that UnitedHealth shares have been nothing short of a blockbuster investment in recent months, currently up some 50% versus their low in late March.
The partial sale of Optum’s Florida clinic operations to TPG represents a “net positive” structural move for UNH shares over the medium-to-long term.
By partnering with a top-tier PE firm, Optum Health unlocks dedicated growth capital to accelerate regional clinic expansion – targeting roughly 15 new locations annually – without burdening itself with excessive capex.
Taking on a private equity partner doesn’t signal distress; in fact, it allows UnitedHealth Group to optimize capital allocation during a challenging operational stretch for its care-delivery arm.
Monetizing a portion of mature assets enables management to focus resources on core profitability while retaining upside exposure through its remaining stake as TPG drives operational efficiencies.
Beyond immediate growth capital, transferring a portion of operational and clinical overhead to TPG helps de-risk Optum's balance sheet against persistent Medicare Advantage headwinds.
With elevated medical care ratio squeezing margins across the value-based care landscape, sharing equity ownership in capital-intensive primary care networks insulates UNH from downside margin volatility in the Florida market.
Furthermore, cash proceeds from the deal provide financial flexibility to pay down debt, fund share buybacks or reallocate capital toward higher-margin OptumRx and Optum Insight tech capabilities.
This disciplined portfolio pruning reinforces the company's long-term earnings power, reassuring market participants that management is actively addressing margin dilution in its health services division.
Ultimately, the TPG deal reflects a disciplined shift toward higher-return operational priorities across the broader enterprise.
By offloading full operational drag in a heavily regulated market, UnitedHealth Group can redirect executive focus toward stabilizing core health insurance underwriting and scaling tech-driven care delivery platforms.
The Florida joint venture establishes a repeatable blueprint for asset-light expansion, demonstrating that Optum can sustain aggressive clinic footprint growth through strategic co-investments rather than balance-sheet-heavy acquisitions.
As UNH management executes on its broader operational turnaround, this rather prudent portfolio realignment positions the conglomerate to deliver more resilient free cash flow and restored margin expansion through the remainder of the fiscal year.
Note that Wall Street analysts currently rate UnitedHealth shares at Overweight, with a mean price target of about $480, indicating potential for a more than 20% rally from current levels.
Key Takeaways UnitedHealth is expanding AI across Optum Insight to support growth and develop new revenue streams.AI prior authorization achieved a 96% first-pass approval rate while retaining human review for exceptions.Value Connect helped early customers cut pharmacy costs by 17%, supporting wider adoption of AI solutions. UnitedHealth Group Inc. (UNH - Free Report) is making artificial intelligence a bigger part of its strategy to strengthen Optum Insight’s growth. The company plans to invest nearly $1.5 billion in AI-related initiatives in 2026, with about one-third earmarked for software products and platforms. The spending is supporting a broader shift toward an AI-first software and services model, giving Optum Insight an opportunity to develop new revenue streams while improving healthcare workflows.
The strategy is moving beyond experimentation into commercial products. Optum Insight is expanding AI capabilities across autonomous coding, digital prior authorization, real-time payer-provider interfaces and clinical quality and safety tools. Digital prior authorization is showing early traction, with AI achieving a 96% first-pass approval rate while retaining human review for cases that are not approved. These solutions could strengthen Optum Insight’s value proposition as payers and providers seek to reduce administrative costs.
Value Connect offers another example of AI translating into measurable customer benefits. The platform, embedded within provider workflows and electronic health records, has helped early customers achieve a 17% reduction in pharmacy costs. Demonstrated savings could support wider adoption as healthcare organizations increasingly seek technology that delivers measurable financial and clinical benefits.
The underlying business is also gaining momentum. Optum Insight generated $5.4 billion in second-quarter 2026 revenues, while operating earnings increased 13.6% year over year and margin improved to 25.3%. As AI products move toward broader commercialization, the strategy could provide another growth lever. Converting early customer results into wider adoption and recurring revenue will be key to strengthening Optum Insight’s growth trajectory.
How Are Competitors Faring?Some of UNH’s major competitors in the healthcare service provider space are Humana Inc. (HUM - Free Report) and Centene Corporation (CNC - Free Report) .
Humana is expanding AI across care management, prior authorization and member engagement to improve efficiency and health outcomes. HUM is also using predictive analytics to identify high-risk members earlier, supporting value-based care while helping manage medical costs and streamline healthcare delivery.
Centene is using AI to strengthen payment integrity and manage rising healthcare costs. CNC’s advanced analytics help detect suspicious claims, identify billing anomalies and improve medical cost management, supporting margins while enhancing oversight across its government-sponsored healthcare programs.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 41.9% over the past six months compared with the industry’s rise of 41.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.48, above the industry average of 16.02. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying 21.2% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past six months, UnitedHealth Group (UNH +0.93%) shares have been crushing it, surging by nearly 40% since March 2026. UnitedHealth, once a highflier among healthcare stocks, has benefited from a major shift in investor sentiment.
However, with the health insurance company's shares reversing course since July, the question is whether UnitedHealth Group will resume its upward trajectory or if this recent, disheartening price trend will persist, placing further pressure on the stock.
Image source: Getty Images.
Strong earnings and turnaround hopes sent UnitedHealth Group surging during mid-2026 Starting with its well-received Q1 earnings release, UnitedHealth Group kicked off an extended rally. Confidence in UnitedHealth Group's turnaround remained a top focus and was key to the stock's surge from $275 to as much as $461.62 between April and July 2026.
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Analysts across Wall Street, including those at Goldman Sachs, BofA, and Morgan Stanley, have upgraded the stock, citing improving utilization trends, plus management's commentary that the company's $3 billion investment in artificial intelligence is already paying off two-to-one.
Since hitting new 52-week highs during the summer, UnitedHealth Group shares have once again experienced waning enthusiasm.
The long-term silver lining Now trading for just under $400 per share, has a "buy the dip" moment emerged? Maybe, maybe not. Worries about fundamentals, not just profit-taking, may be driving the stock's weak post-earnings price action.
Even as favorable utilization trends and cost-cutting measures continue to boost the bottom line, on the Q2 2026 post-earnings conference call, management discussed how issues like independent dispute resolutions, as well as increased coverage of GLP-1 and anti-inflammatory drugs, remain key concerns when it comes to rising cost trends.
Trading for 18 times estimated 2027 earnings, UnitedHealth appears reasonably priced compared to its historical valuation. Still, if management's AI-driven turnaround pans out and drives expected earnings growth in the mid-to-high teens over the next three years, recent volatility could seem like a hiccup in hindsight. As the company continues to release strong quarterly results, the stock appears to remain a solid long-term buy, even if recent volatility persists in the near-term.
Key Takeaways UnitedHealth shares rose 38.8% in six months as medical-cost pressures eased and confidence improved.UnitedHealth's medical care ratio fell to 85.3%, while first-half medical costs declined 2% to $148.8B.UnitedHealth's 2026 EPS estimate is $19.82, up 21.2%, with further growth projected for 2027. Shares of UnitedHealth Group Incorporated (UNH - Free Report) have climbed 38.8% over the past six months, outpacing the industry’s 36.8% gain and the S&P 500’s 12% rise. The rebound reflects improving confidence that UnitedHealth is moving past medical-cost pressures and execution setbacks that weighed heavily on the stock through 2025 and early 2026.
Among major peers, Elevance Health, Inc. (ELV - Free Report) has gained 44.8%, while Humana Inc. (HUM - Free Report) has surged 124.9% over the same period.
6-Month Price Performance – UNH, ELV, HUM, Industry & S&P 500 Image Source: Zacks Investment Research
What is Driving UNH’s Recovery?Medical-cost trends have improved, suggesting pricing, benefit design and cost controls are working. In the first half of 2026, UnitedHealth’s medical care ratio decreased to 85.3% from 87.1% a year earlier. Medical costs also declined 2% to $148.8 billion. The focus now is whether the company can sustain that progress and translate lower cost pressure into stronger earnings through 2027 and beyond.
UnitedHealth is also reducing exposure to weaker-return businesses. The company is pulling back from selected Medicare Advantage and Optum Health markets, which should help limit losses, simplify operations and redirect capital toward areas with better return potential. A leaner footprint could improve profitability and execution.
Optum remains an important source of diversification beyond insurance. Its move toward a more transparent, fee-based pharmacy benefit model could strengthen its competitive position while addressing regulatory concerns around traditional PBM practices. If execution is disciplined, the shift may enhance client appeal without weakening the economics of the business.
The Medicare Advantage backdrop has also improved. In April, CMS finalized an average 2.48% increase in 2027 Medicare Advantage payments, well above the previously proposed 0.09% increase. The rate outlook eases reimbursement concerns and gives insurers greater room to manage benefits, pricing and margins.
Capital returns have also supported sentiment. Through mid-July 2026, UnitedHealth had repurchased $4 billion of stock and remained on track to buy back at least $5 billion for the year. It also paid $4.1 billion in dividends during the first half, underscoring confidence in cash generation.
Beyond the near-term recovery, UnitedHealth still benefits from scale, a broad healthcare platform and a strong position across insurance, pharmacy services and care delivery. Aging demographics and rising healthcare demand continue to provide long-term support.
Prior Authorization Cuts: Opportunity With Some RiskUnitedHealthcare is removing 30% of its remaining prior authorization requirements, including approvals tied to surgeries, diagnostic tests and therapies. The change could improve member satisfaction, ease provider frustration and reduce administrative work across its health plans. Faster access to care may also help retention and strengthen UnitedHealthcare’s competitive standing.
There is a trade-off, however. Fewer authorization checks could increase healthcare utilization and lift medical costs. The move may lower administrative expenses and reduce regulatory scrutiny, but UNH will still need pricing, care management and benefit design to keep any rise in utilization from weighing on margins.
Estimates Point to a Stronger Earnings PathThe Zacks Consensus Estimate for 2026 EPS is pegged at $19.82, indicating 21.2% year-over-year growth. The estimate has received two upward revisions over the past month and no downward changes. Revenues are projected at $446.78 billion, down 0.2%, reflecting UnitedHealth’s greater focus on profitability rather than pure top-line expansion.
For 2027, EPS is expected to rise 13.7% to $22.54. The estimate has seen three upward revisions over the past month, with no downward moves. Revenue is projected to increase 2.6% to $458.33 billion.
UnitedHealth has also topped earnings estimates in each of the past four quarters, delivering an average surprise of 12.1%.
Is UNH Still Reasonably Valued?The rebound has lifted UnitedHealth’s valuation above the industry average. The stock trades at 18.51X forward earnings, compared with 16.13X for the industry. Still, the multiple remains below UNH’s five-year median of 19.11X, suggesting valuation has not moved beyond its historical range. The stock currently carries a Value Score of B.
For comparison, Elevance now trades at 14.51X forward earnings, while Humana trades at 30.63X.
Image Source: Zacks Investment Research
Wall Street sentiment also remains supportive. Several analysts have recently raised price targets or upgraded the stock. UNH still trades below the average analyst target of $481.52, implying about 20.5% upside. The target range of $380 to $529 shows that views remain divided, but the balance of expectations is still constructive.
How to Play UNH SharesUnitedHealth’s recovery is gaining momentum as medical-cost trends improve and management sharpens its focus on more profitable businesses. Favorable Medicare Advantage reimbursement, strong capital returns and Optum’s diversification add further support. The prior-authorization changes could strengthen member and provider relationships, though higher utilization remains a risk.
Valuation has risen, but the stock still trades below its five-year median multiple and Wall Street’s average price target. With earnings estimates moving higher and operating trends improving, UNH appears to have further upside despite its recent rally. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last year, UnitedHealth Group's (UNH +0.32%) struggles with rising medical costs weighed significantly on earnings -- and on stock performance. But the company has since put into place a plan to turn things around, and that plan has been bearing fruit. Though UnitedHealth's challenges haven't disappeared, the company is better navigating the current market, and efforts are paving the way for long-term growth.
Earnings in the recent quarter, which surpassed estimates, confirmed this positive momentum. And investors haven't ignored this important turnaround story. They've piled into UnitedHealth shares, sending the stock to a 21% gain so far this year. Considering this market-beating performance, is the stock still a buy? Let's find out.
Image source: Getty Images.
The rising cost of medical care So, first a quick look at the headwinds facing UnitedHealth -- and its fellow health insurers. The rising cost of medical care is an issue that probably won't go away, and it hurt UnitedHealth last year, particularly since the company underestimated patients' use of medical services. But wisely, UnitedHealth decided to adapt its operations to better manage these higher costs moving forward. Efforts included dropping certain plans that were too costly, increasing premiums, and investing in artificial intelligence (AI) to gain efficiency.
The idea is that, since it's unlikely medical care costs will drop, UnitedHealth today and into the future will be better prepared to operate in a high-cost environment.
In the quarter, the company's efforts across benefit design and network curation drove better- than-expected results for its Medicare Advantage business. That said, UnitedHealth continues to face high costs across its commercial offerings, a trend that's impacting the entire industry. The company says recovery in commercial margins will be a focus "longer than originally anticipated." This will be a key point for investors to watch.
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UnitedHealth increases its outlook But, overall, UnitedHealth's moves so far have been successful, and that may be seen in the latest earnings figures. The company reported adjusted earnings per share of $6.38, up from $4.08 in the same period last year and surpassing analysts' expectations. Meanwhile, the company increased its full-year adjusted earnings per share outlook to the range of $19.50 to $20. That's up from the prior estimate of $18.25 or greater.
Importantly, the company's medical care ratio came down to 86.7% from 89.4% in the same period a year ago. This ratio measures the percentage of premiums spent on medical care. A lower number is better for the insurer financially, though regulatory limits mean this percentage shouldn't drop too low. Insurers generally aim for 80% to 85%.
It's key to note that UnitedHealth operates two units, the UnitedHealthcare insurance business and the Optum health services business. This, along with the fact that UnitedHealth is the biggest U.S. health insurer, offers the company a solid moat or competitive advantage. It would be difficult for a rival to upset UnitedHealth's market position.
Now, let's consider the stock's performance and whether this player still should be on your buy list. As mentioned, UnitedHealth stock has climbed in the double digits this year as investors tracked the company's progress over the past couple of quarters. This has driven an increase in valuation, with the stock trading at 20x forward earnings estimates, up from a low of around 15x earlier this year. But, this level is still much lower than the peak of more than 35x reached last year.
UnitedHealth may not be dirt cheap, but it has demonstrated over the past year that its plan to address the challenge of higher healthcare costs is working. So, considering the company's efforts and progress so far and the full valuation picture, it remains reasonably priced. All of that means that UnitedHealth, even after recent gains, is a stock to buy and hold onto as this recovery story could deliver more good news over time.
Key Takeaways UnitedHealth is recovering as lower medical costs help drive stronger margins and earnings.Optum's operating income rose 29% to $4 billion in the second quarter on better execution.UnitedHealth raised its 2026 adjusted EPS outlook to $19.50-$20 despite ongoing risks. UnitedHealth Group, Inc. (UNH - Free Report) appears to be making meaningful progress toward recovering from the turbulence that weighed on its performance in 2025. After facing elevated medical costs, unfavorable utilization trends and pressure across government-sponsored businesses, the healthcare giant has entered 2026 with a stronger operating footing. In the first half of 2026, its total revenues rose 1.2% year over year along with 20.5% growth in adjusted earnings per share (EPS).
A key catalyst has been better control over medical expenses. UNH’s medical care ratio declined to 86.7% in the second quarter from 89.4% a year earlier, aided by improved pricing, benefit-design changes, member mix, medical-cost management and favorable prior-period reserve development. The improvement helped UnitedHealthcare’s operating margin expand to 4.6% from 2.4% in the prior-year quarter. Meanwhile, membership declined, particularly in Medicare Advantage, as UNH is currently prioritizing profitable growth over enrollment expansion, a strategy that could support healthier margins over time.
Optum is also contributing to the recovery. The segment benefited from improved operational execution, with operating income rising 29% year over year to $4 billion in the second quarter. Investments in technology, artificial intelligence and care-delivery capabilities are aimed at improving productivity and clinical efficiency, potentially creating additional opportunities for margin expansion.
The stronger results encouraged UnitedHealth to raise its 2026 adjusted EPS outlook to $19.50-$20. Still, elevated medical-cost trends, pressure in Medicaid and commercial benefits and membership declines remain risks. Therefore, sustained medical-cost discipline and continued improvement at Optum will be crucial for making the recovery durable.
How Are Competitors Faring?Some of UNH’s major competitors in the medical space are Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
Humana is focusing on pricing, network management and operating efficiencies to restore margins while navigating elevated medical costs and utilization across its Medicare Advantage business. In the first half of 2026, HUM’s adjusted revenues increased 24.9% year over year and adjusted EPS grew 0.3%.
Elevance is prioritizing medical cost management, operating efficiency and Carelon’s expansion while dealing with elevated medical costs and membership declines in government businesses. In the first half of 2026, operating revenues increased 1.2% year over year, while adjusted EPS declined 3.7%.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 28.7% in the past year compared with the industry’s growth of 24%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.46, above the industry average of 15.99. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying 21.2% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
B. Metzler seel. Sohn and Co. AG boosted its stake in UnitedHealth Group Incorporated (NYSE: UNH) by 49.2% during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 86,196 shares of the healthcare conglomerate's stock after acquiring an additional 28,435
The insurer is cutting authorization friction while protecting medical-cost discipline across $112 billion of quarterly revenue. Summary
Less paperwork can rebuild trust—but claims control still matters.
UnitedHealth Group UNH, the health-insurance and medical-services powerhouse, jumped approximately 0.8% to $399.4 on Wednesday as Wall Street sized up its latest attack on healthcare bureaucracy. Starting October 1, UnitedHealthcare will eliminate prior-authorization requirements for a broad range of conditions. Less waiting. Less paperwork. Faster care.
The overhaul pushes UnitedHealthcare closer to its commitment to scrap approvals for 30% of services that previously required them. Selected outpatient procedures, echocardiograms, therapies and chiropractic care are on the chopping block. The stakes are enormous. UnitedHealth's second-quarter results delivered $112 billion in revenue but only $8 billion in operating earnings. That is a 7.1% operating margin—and not much cushion if medical costs suddenly explode.
The valuation picture flashes opportunity. At $399.405, UnitedHealth trades 32.59% below its GF Value estimate of $592.48. That discount could close fast if simpler approvals cut administrative costs, repair provider relationships and improve the patient experience. But there is a trap: removing friction could also unleash heavier medical utilization. UnitedHealth must make healthcare easier without letting costs run wild. Nail that balance, and this beaten-down giant could have serious room to run.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about UnitedHealth Group (UNH - Free Report) .
UnitedHealth currently has an average brokerage recommendation (ABR) of 1.46, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.46 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 19 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 70.4% and 11.1% of all recommendations.
Brokerage Recommendation Trends for UNH
Check price target & stock forecast for UnitedHealth here>>>
While the ABR calls for buying UnitedHealth, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is UNH Worth Investing In?In terms of earnings estimate revisions for UnitedHealth, the Zacks Consensus Estimate for the current year has increased 0.6% over the past month to $19.82.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for UnitedHealth. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for UnitedHealth may serve as a useful guide for investors.
UnitedHealth's (UNH.N) insurance unit said on Tuesday that a broad range of conditions will no longer need prior approval, effective October 1, as it aims to eliminate prior authorization for 30% of healthcare services by the end of this year.
Here are the details:
The reduction spans a broad mix of services across multiple clinical specialties, including cardiology, genetic and laboratory testing, chiropractic care, physical, occupational and speech therapy, orthopedic and musculoskeletal procedures, among others.
The prior authorization requirements are being eliminated across its commercial plans, Medicare Advantage for older adults and individual insurance under the Affordable Care Act, also known as Obamacare, and some other types of plans.
Health insurers have been taking measures to simplify their requirements for prior authorization on medicines and medical services after complaints from patients and doctors over excessive paperwork that can delay or even deny needed care.
The actions are designed to reduce unnecessary paperwork, make information easier to understand and allow patients and care providers more time to focus on care, UnitedHealthcare said.
The company is also reducing administrative requirements for eligible rural hospitals and affiliated providers through a rural prior authorization waiver program scheduled to begin on November 1.
UnitedHealthcare is speeding payments by up to 50% for about 1,400 rural hospitals and Critical Access Hospitals in the third quarter.
UnitedHealth Group's United Healthcare health insurance business said 1,700 diagnostic codes tied to treatments and procedures will soon no longer require prior approval.
You found a great company, then watched it double before you got round to buying. So you crossed it off your list and waited for a pullback that never came.
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The man who taught David to buy highMotley Fool co-founder and Chief Rule Breaker David Gardner calls this Trait #3 of six in Rule Breaker Investing: stellar past price appreciation. The idea comes from William O'Neil, founder of Investors' Business Daily, whose research on past market winners found that the best stocks rise, then rise again. Most investors build watchlists from 52-week lows; O'Neil taught David to hunt among the highs.
David took that one idea and left the rest of the system. O'Neil also told traders to sell any stock that fell 7%. Our Foolish belief is that buying high only pays if you then refuse to sell.
Three buys after a jump (and what they're worth now)Guardant Health (GH -1.54%), a cancer-diagnostics company, went public on Oct. 9, 2018, at $19. Six weeks later, we recommended it at $37.16, after the stock had already gained 96%. By Feb. 14, 2019, it was $48.87, up another 32%, and we bought it again.
Then it broke. Guardant peaked above $180 in February 2021, then ground down for three years to $15.81 on April 19, 2024, a low it has never revisited.
We were holding it that day, badly. Those two positions were down 57% and 68%. Every instinct says: average down.
We didn't. Seven weeks later we bought it at $30.50, nearly double the price we'd just walked past.
The science hadn't changed. On May 23, 2024, an FDA advisory panel reviewed Guardant's Shield blood test for colorectal cancer screening and voted 8–1 that it was safe, 7–2 that its benefits outweighed its risks. We recommended the stock a third time on June 11. The FDA approved Shield on July 29.
Colorectal screening fails on compliance. Roughly three-quarters of deaths happen to people who weren't up to date, because colonoscopies work superbly and get skipped. Shield is a blood draw at a physical they already booked.
The June 2024 recommendation has returned 430%, against a shade under 48% for the S&P 500 -- a gap of 382 percentage points. The 2018 pick has more than quadrupled, beating the market by 106 percentage points. The 2019 pick has more than tripled.
The pick that won by most is the one we bought after a 93% run!
Revenue has since caught up. It hit $982 million in 2025, and Shield's quarterly revenue went from $5.7 million to $41.6 million. Then in July, UnitedHealth Group (UNH -0.90%) agreed to cover the test, putting it within reach of some 100 million more people.
What holding actually costsTrait #3 only shifts the odds, and Guardant proves it: The 2018 and 2019 picks carried the trait beautifully, then lost more than half their value. A 7% sell rule would have closed both positions in 2021. Seven years on, that 2019 pick is barely 15 percentage points ahead of the index.
In September 2025, weak data on the next Shield version sent the stock down, and Guardant lost $416 million last year against $1.7 billion of debt.
Guardant is also the flattering case. David is candid that the trait has led him into losers.
Drawdowns are routine. Counting declines of 50% or more from a prior closing high: Netflix (NFLX -0.82%) five since its IPO, Apple (AAPL -0.89%) five, Amazon (AMZN -2.50%) four. Every one of those Netflix falls was followed by a new high, and in the year after each, the stock gained between 55% and 725%. Its worst came after the Qwikster mess of 2011: an 83% collapse from a split-adjusted peak of $4.35 -- a price that looked expensive at the time, and a sixteenth of the high the stock would reach a decade later.
Buy high, then sit stillTrait #3 doesn't work alone. David says to look elsewhere if a stock offers just one of his six traits, because a rising price alone is only momentum.
When the business checks out, stop treating the run-up as a reason to pass. Excellent companies double, then usually double again. The investor who crosses one off because it already did is the investor who never owns it.
David asks readers to stick seven words on the fridge: "Buy high and try not to sell." Trait #3 is the first half of that sentence.
Which stock did you pass on because it had already run, and what were you telling yourself at the time? The price you refused is the easy part to remember. The reasoning behind it is what the rest of us can actually learn from. Drop it in the comments!
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#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
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Stock to Watch: UnitedHealth Group (UNH - Free Report) UnitedHealth Group, Inc. provides a wide range of health care products and services, such as health maintenance organizations (HMOs), point of service plans (POS), preferred provider organizations (PPOs), and managed fee-for-service programs.
UNH is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.83; value investors should take notice.
14 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $1.53 to $19.82 per share. UNH also boasts an average earnings surprise of +12.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, UNH should be on investors' short list.
BNP Paribas decreased its stake in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 23.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 5,923 shares of the healthcare conglomerate’s stock after selling 1,847 shares during the period. BNP Paribas’ holdings in UnitedHealth Group were worth $2,479,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in UNH. Brighton Jones LLC lifted its position in UnitedHealth Group by 176.2% during the fourth quarter. Brighton Jones LLC now owns 44,249 shares of the healthcare conglomerate’s stock valued at $22,384,000 after buying an additional 28,231 shares in the last quarter. Revolve Wealth Partners LLC increased its holdings in UnitedHealth Group by 137.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 4,019 shares of the healthcare conglomerate’s stock valued at $2,033,000 after purchasing an additional 2,324 shares in the last quarter. CMT Capital Markets Trading GmbH acquired a new position in shares of UnitedHealth Group during the second quarter worth about $340,000. Flow Traders U.S. LLC acquired a new stake in shares of UnitedHealth Group in the second quarter valued at about $356,000. Finally, Jump Financial LLC purchased a new position in UnitedHealth Group in the 2nd quarter worth approximately $377,000. Institutional investors and hedge funds own 87.86% of the company’s stock.
Insider Activity In other news, CEO Patrick Hugh Conway sold 1,169 shares of the firm’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $390.00, for a total transaction of $455,910.00. Following the transaction, the chief executive officer directly owned 15,328 shares of the company’s stock, valued at approximately $5,977,920. This trade represents a 7.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.19% of the company’s stock.
Wall Street Analyst Weigh In Several brokerages have recently weighed in on UNH. UBS Group upped their target price on shares of UnitedHealth Group from $460.00 to $490.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Wall Street Zen raised shares of UnitedHealth Group from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Royal Bank Of Canada boosted their price target on UnitedHealth Group from $463.00 to $478.00 and gave the stock an “outperform” rating in a research note on Friday, July 17th. HC Wainwright set a $492.00 price objective on UnitedHealth Group in a report on Wednesday, May 27th. Finally, Weiss Ratings cut UnitedHealth Group from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $456.56. Check Out Our Latest Analysis on UnitedHealth Group
UnitedHealth Group Stock Performance Shares of NYSE UNH opened at $393.99 on Friday. The stock has a market capitalization of $353.64 billion, a P/E ratio of 25.35, a P/E/G ratio of 1.36 and a beta of 0.62. The firm’s 50-day moving average price is $413.28 and its two-hundred day moving average price is $360.11. UnitedHealth Group Incorporated has a 52-week low of $255.96 and a 52-week high of $461.62. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.66.
UnitedHealth Group (NYSE:UNH – Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.94 by $1.44. The business had revenue of $112.03 billion for the quarter, compared to the consensus estimate of $110.81 billion. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The business’s revenue was up .4% on a year-over-year basis. During the same quarter last year, the business posted $4.08 EPS. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. As a group, sell-side analysts forecast that UnitedHealth Group Incorporated will post 19.82 earnings per share for the current year.
UnitedHealth Group Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Monday, September 14th will be given a $2.32 dividend. The ex-dividend date is Monday, September 14th. This represents a $9.28 annualized dividend and a yield of 2.4%. UnitedHealth Group’s dividend payout ratio is 59.72%.
UnitedHealth Group Profile (Free Report)
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.
See Also Five stocks we like better than UnitedHealth Group 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
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Alta Advisers Ltd purchased a new position in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 3,616 shares of the healthcare conglomerate’s stock, valued at approximately $1,503,000.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. LFG Wealth Partners LLC boosted its position in shares of UnitedHealth Group by 3.3% during the second quarter. LFG Wealth Partners LLC now owns 853 shares of the healthcare conglomerate’s stock worth $355,000 after buying an additional 27 shares during the period. Synergy Financial Group LTD raised its stake in UnitedHealth Group by 3.1% during the 2nd quarter. Synergy Financial Group LTD now owns 887 shares of the healthcare conglomerate’s stock valued at $369,000 after acquiring an additional 27 shares in the last quarter. Ares Financial Consulting LLC grew its stake in shares of UnitedHealth Group by 7.2% in the second quarter. Ares Financial Consulting LLC now owns 419 shares of the healthcare conglomerate’s stock worth $174,000 after purchasing an additional 28 shares in the last quarter. Rockland Trust Co. grew its position in UnitedHealth Group by 1.1% in the 2nd quarter. Rockland Trust Co. now owns 2,589 shares of the healthcare conglomerate’s stock valued at $1,076,000 after buying an additional 29 shares in the last quarter. Finally, Matrix Trust Co raised its position in shares of UnitedHealth Group by 24.8% during the 2nd quarter. Matrix Trust Co now owns 146 shares of the healthcare conglomerate’s stock worth $61,000 after buying an additional 29 shares in the last quarter. Institutional investors own 87.86% of the company’s stock.
Analysts Set New Price Targets A number of research analysts recently commented on UNH shares. Oppenheimer raised their price objective on shares of UnitedHealth Group from $420.00 to $500.00 and gave the company an “outperform” rating in a research note on Friday, July 17th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of UnitedHealth Group in a research note on Thursday, June 11th. Erste Group Bank raised UnitedHealth Group from a “hold” rating to a “buy” rating in a report on Monday, April 27th. BMO Capital Markets set a $512.00 price target on shares of UnitedHealth Group in a research report on Tuesday, July 21st. Finally, TD Cowen raised their price objective on UnitedHealth Group from $337.00 to $430.00 and gave the stock a “hold” rating in a research report on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $455.92.
View Our Latest Research Report on UNH Insider Activity In related news, CEO Patrick Hugh Conway sold 500 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total transaction of $205,000.00. Following the transaction, the chief executive officer owned 16,497 shares of the company’s stock, valued at approximately $6,763,770. The trade was a 2.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.19% of the company’s stock.
UnitedHealth Group Stock Up 2.3% UNH opened at $398.89 on Tuesday. The company has a market capitalization of $358.04 billion, a PE ratio of 25.67, a price-to-earnings-growth ratio of 1.35 and a beta of 0.62. The business has a 50-day moving average of $413.74 and a 200-day moving average of $357.26. UnitedHealth Group Incorporated has a fifty-two week low of $255.96 and a fifty-two week high of $461.62. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.78 and a quick ratio of 0.78.
UnitedHealth Group (NYSE:UNH – Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. The firm had revenue of $112.03 billion during the quarter, compared to analysts’ expectations of $110.81 billion. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. UnitedHealth Group’s revenue for the quarter was up .4% on a year-over-year basis. During the same period in the prior year, the company posted $4.08 earnings per share. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Equities research analysts forecast that UnitedHealth Group Incorporated will post 19.81 EPS for the current fiscal year.
UnitedHealth Group Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th will be issued a dividend of $2.32 per share. The ex-dividend date is Monday, September 14th. This represents a $9.28 dividend on an annualized basis and a dividend yield of 2.3%. UnitedHealth Group’s payout ratio is 59.72%.
UnitedHealth Group Company Profile (Free Report)
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.
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Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 1,462,167 shares of the healthcare conglomerate’s stock, valued at approximately $607,720,000. UnitedHealth Group accounts for 1.8% of Barrow Hanley Mewhinney & Strauss LLC’s investment portfolio, making the stock its 12th largest position. Barrow Hanley Mewhinney & Strauss LLC owned 0.16% of UnitedHealth Group as of its most recent SEC filing.
Several other large investors have also bought and sold shares of UNH. Sarver Vrooman Wealth Advisors bought a new position in shares of UnitedHealth Group in the 4th quarter worth about $25,000. Anfield Capital Management LLC boosted its stake in UnitedHealth Group by 220.0% in the 4th quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate’s stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Joseph Group Capital Management bought a new stake in shares of UnitedHealth Group during the fourth quarter valued at approximately $27,000. Nalls Sherbakoff Group LLC purchased a new position in shares of UnitedHealth Group in the fourth quarter worth $27,000. Finally, Lifetime Wealth Management P.C. bought a new stake in shares of UnitedHealth Group in the fourth quarter worth approximately $29,000. 87.86% of the stock is owned by institutional investors.
Analyst Ratings Changes Several research analysts have issued reports on UNH shares. Wells Fargo & Company raised their target price on UnitedHealth Group from $397.00 to $485.00 and gave the stock an “overweight” rating in a research report on Monday, July 13th. Robert W. Baird raised shares of UnitedHealth Group from an “underperform” rating to a “neutral” rating and raised their target price for the company from $287.00 to $453.00 in a research note on Thursday, July 16th. Leerink Partners boosted their target price on shares of UnitedHealth Group from $400.00 to $462.00 and gave the stock an “outperform” rating in a report on Wednesday, June 17th. BMO Capital Markets set a $512.00 price objective on shares of UnitedHealth Group in a research report on Tuesday, July 21st. Finally, Piper Sandler set a $477.00 price target on UnitedHealth Group in a report on Thursday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, UnitedHealth Group has an average rating of “Moderate Buy” and an average target price of $455.92.
Read Our Latest Stock Analysis on UnitedHealth Group Insider Transactions at UnitedHealth Group In related news, CEO Patrick Hugh Conway sold 500 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total value of $205,000.00. Following the completion of the sale, the chief executive officer owned 16,497 shares of the company’s stock, valued at approximately $6,763,770. The trade was a 2.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.19% of the company’s stock.
UnitedHealth Group Stock Performance Shares of NYSE UNH opened at $398.89 on Tuesday. UnitedHealth Group Incorporated has a 1 year low of $255.96 and a 1 year high of $461.62. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.78 and a current ratio of 0.78. The company’s fifty day moving average price is $413.74 and its 200 day moving average price is $357.26. The company has a market capitalization of $358.04 billion, a PE ratio of 25.67, a price-to-earnings-growth ratio of 1.35 and a beta of 0.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.94 by $1.44. The business had revenue of $112.03 billion for the quarter, compared to analyst estimates of $110.81 billion. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The company’s revenue for the quarter was up .4% on a year-over-year basis. During the same period in the prior year, the company posted $4.08 EPS. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. On average, research analysts predict that UnitedHealth Group Incorporated will post 19.81 earnings per share for the current year.
UnitedHealth Group Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th will be paid a dividend of $2.32 per share. This represents a $9.28 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, September 14th. UnitedHealth Group’s dividend payout ratio is presently 59.72%.
UnitedHealth Group Company Profile (Free Report)
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.
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Key Takeaways UnitedHealth expects Medicare Advantage margins to finish 2026 above 3% amid tighter benefit design.Elevance's Carelon unit grew 6.3% in Q2, supported by behavioral health and care coordination gains.UnitedHealth's adjusted EPS jumped 56.4% year over year in Q2, while its 2026 outlook rose to $19.50-$20. The managed-care industry is navigating a more challenging growth environment as insurers balance rising medical costs, changing Medicare Advantage dynamics and the need for disciplined pricing. These factors are putting greater emphasis on profitability, membership quality and the ability to manage care efficiently while sustaining long-term growth. Against this backdrop, UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) operate across overlapping health insurance markets, making them closely comparable peers within the managed-care sector.
UnitedHealth combines its insurance operations with a broad health-services platform, while Elevance is leveraging its insurance business alongside Carelon to expand its healthcare services capabilities. Their differing business mixes and approaches to Medicare Advantage and care management provide a useful basis for comparing fundamentals, growth prospects and strategic direction.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for UNHUnitedHealth, with a current market cap of $357.8 billion, has several avenues to support growth as its core insurance business, UnitedHealthcare, improves and Optum gains momentum. UnitedHealthcare’s Medicare business is benefiting from tighter benefit design, care management and network curation, with a greater emphasis on profitability and sustainable returns rather than pursuing membership growth at any cost. The company is focusing its Medicare portfolio on plans that can deliver appropriate returns while maintaining value for members. UNH expects Medicare Advantage margins to finish 2026 above 3%.
OptumHealth provides another key growth engine, with the business focused on expanding its integrated value-based care model across primary and specialty care, ambulatory surgery and home health. Its care-transition initiatives have reduced hospitalizations by roughly 10% in its Western and Southern regions. OptumHealth also reaches nearly 90% of U.S. counties and conducts around 2.5 million rural home visits annually, with plans to expand these programs across its footprint by the end of 2026.
UNH is also investing heavily in technology and AI to simplify health care and improve operating efficiency. The company plans to eliminate 30% of prior-authorization volume by the end of 2026, along with nearly two-thirds of prior-authorization requirements for pediatric care. At OptumHealth, AI-based ambient listening is already available to 70% of employed providers and is expected to exceed 90% by year-end, while further investments in clinical workflows, automation and network performance are planned. Optum Rx and Optum Insight add further opportunities through transparency, AI-enabled services and value-based solutions.
In the second quarter of 2026, UNH’s consolidated revenues rose 0.4% year over year. Its consolidated medical care ratio improved to 86.7% in the quarter from 89.4% a year ago. Meanwhile, the company’s adjusted EPS rose 56.4% year over year in the second quarter of 2026 and raised its 2026 adjusted EPS outlook to $19.50-$20. UNH beat earnings estimates in each of the past four quarters, with an average surprise of 12.1%.
Financially, UNH is in a solid position. It ended the second quarter of 2026 with $31.5 billion in cash and short-term investments, sufficient to cover its short-term borrowings and current maturities of long-term debt, which stands at $3.8 billion. Its long-term debt-to-capital of 40.4% is below ELV’s 40.5%. In the first half of 2026, it paid dividends worth $4.1 billion.
The Case for ELVElevance, with a current market cap of $87.3 billion, is building its growth outlook around a broader recovery across Medicare Advantage, individual ACA, commercial benefits and Carelon. Medicare Advantage performance has improved following tighter plan design and a more focused product mix, supporting a path to at least a 2% operating margin in 2026. In the second quarter of 2026, its health benefits segment’s revenues grew 2.7% year over year, along with 6.3% growth in the total Carelon unit.
Carelon is emerging as a more meaningful contributor to ELV's longer-term growth. Its behavioral health programs have generated average cost savings of about 10% by identifying members earlier and coordinating care more effectively. CareBridge is also being expanded into new markets and can generate medical savings in the mid-teens for the members it serves. Further expansion into complex areas such as behavioral health and oncology could increase the contribution from Carelon's value-based model over time.
ELV is investing heavily in technology and data-driven capabilities. Investments in Sydney Health, concierge care and proactive member engagement are designed to make care navigation more personalized, while HealthOS is helping providers review care plans earlier, reduce delays and limit administrative friction. It is also accelerating investments in medical cost management, provider connectivity and AI-enabled capabilities, with HealthOS tools targeting fewer documentation requests, better prior authorization and greater use of real-time processes.
The company is also positioning its commercial and pharmacy businesses for longer-term expansion. Its integrated medical and pharmacy offering is seeing demand, particularly for patient advocacy, behavioral health and digital engagement services, while CarelonRx is seeing early progress in the 2027 selling season. ELV has raised its 2026 adjusted EPS guidance to at least $27 and is targeting at least 12% adjusted EPS growth in 2027, supported by health benefits, Carelon growth, operating efficiency and disciplined capital deployment. It beat earnings estimates in each of the past four quarters, with an average surprise of 16.6%.
ELV exited the second quarter of 2026 with a solid liquidity position, holding $10.2 billion in cash and cash equivalents. The company also demonstrates relatively stronger capital efficiency, with a return on invested capital of 7.8%, notably higher than UnitedHealth at 6.2%. However, its dividend yield of 1.7% is lower than that of UNH’s 2.3%.
How Do the Estimates Compare for UNH & ELV?The Zacks Consensus Estimate favors UNH at this stage. The consensus estimate for UNH’s 2026 earnings indicates a 21.2% increase from a year ago. Meanwhile, the consensus estimate for revenues suggests a 0.2% decline. On the other hand, the consensus estimate for ELV’s 2026 earnings indicates a 10.6% fall from a year ago, while the same for revenues suggests a 1.2% decline.
Valuation: UNH vs. ELVComing to the valuation story, it seems that investors are willing to pay a premium for UnitedHealth compared to Elevance. This is reflected in UNH’s forward 12-month price/earnings (P/E) of 18.47X compared with ELV’s 14.07X.
Image Source: Zacks Investment Research
Price Performance ComparisonOver the past year, UNH shares have outperformed ELV and the S&P 500.
Price Performance – UNH, ELV & S&P 500
Image Source: Zacks Investment Research
Price TargetUNH currently trades below its average analyst price target of $481.52, implying an attractive 23.4% potential upside from current levels. Meanwhile, ELV also trades below its average analyst price target of $447.85, implying an 11.8% potential upside from current levels.
ConclusionOverall, Elevance offers attractive long-term potential through Carelon, disciplined Medicare Advantage management and technology investments, but its earnings are expected to decline in 2026. Meanwhile, UnitedHealth’s improving Medicare profitability, Optum’s value-based care opportunities, strong earnings growth outlook and greater expected upside provide a more compelling combination of growth and recovery potential. UNH also has a stronger balance sheet and higher dividend yield than ELV.
With stronger earnings prospects and a more favorable risk-reward profile, UNH appears better positioned to deliver stronger returns, making it the more compelling choice between the two stocks. Currently, UnitedHealth sports a Zacks Rank #1 (Strong Buy), while Elevance has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Barbara Oil Co. bought a new position in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 7,500 shares of the healthcare conglomerate’s stock, valued at approximately $3,117,000. UnitedHealth Group comprises approximately 1.0% of Barbara Oil Co.’s portfolio, making the stock its 29th biggest holding.
Several other hedge funds and other institutional investors also recently modified their holdings of UNH. LFG Wealth Partners LLC raised its stake in UnitedHealth Group by 3.3% in the second quarter. LFG Wealth Partners LLC now owns 853 shares of the healthcare conglomerate’s stock valued at $355,000 after purchasing an additional 27 shares in the last quarter. Synergy Financial Group LTD increased its holdings in shares of UnitedHealth Group by 3.1% in the 2nd quarter. Synergy Financial Group LTD now owns 887 shares of the healthcare conglomerate’s stock worth $369,000 after buying an additional 27 shares during the last quarter. Ares Financial Consulting LLC lifted its holdings in shares of UnitedHealth Group by 7.2% during the 2nd quarter. Ares Financial Consulting LLC now owns 419 shares of the healthcare conglomerate’s stock worth $174,000 after acquiring an additional 28 shares during the last quarter. Rockland Trust Co. increased its stake in UnitedHealth Group by 1.1% in the second quarter. Rockland Trust Co. now owns 2,589 shares of the healthcare conglomerate’s stock valued at $1,076,000 after acquiring an additional 29 shares during the last quarter. Finally, Matrix Trust Co raised its position in UnitedHealth Group by 24.8% during the second quarter. Matrix Trust Co now owns 146 shares of the healthcare conglomerate’s stock valued at $61,000 after purchasing an additional 29 shares in the last quarter. Hedge funds and other institutional investors own 87.86% of the company’s stock.
Insider Buying and Selling In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 1,169 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $390.00, for a total value of $455,910.00. Following the completion of the transaction, the chief executive officer owned 15,328 shares of the company’s stock, valued at approximately $5,977,920. The trade was a 7.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.19% of the company’s stock.
UnitedHealth Group News Roundup Here are the key news stories impacting UnitedHealth Group this week: Positive Sentiment: UnitedHealth is viewed more favorably than Elevance Health, with analysts citing stronger earnings prospects, improving Medicare profitability, greater potential upside and a more attractive risk-reward profile. UnitedHealth vs. Elevance: Which Managed-Care Stock Is a Better Buy? Positive Sentiment: Recent quarterly results provide fundamental support: UnitedHealth exceeded EPS and revenue expectations, and management maintained fiscal 2026 earnings guidance of approximately $19.50 to $20.00 per share. The earnings beat has helped reinforce confidence in the company’s outlook. UnitedHealth Group stock holds near $399 as Q2 2026 earnings beat supports higher EPS guidance Positive Sentiment: Industry commentary remains constructive on managed-care companies, citing steady premium revenue, an aging U.S. population, digital transformation, diversified membership and potential benefits from strategic acquisitions. UnitedHealth is among the companies identified as positioned to benefit. Zacks Industry Outlook UnitedHealth, The Cigna, Humana, Centene and Molina Neutral Sentiment: Analysts collectively maintain a “Moderate Buy” rating, indicating a generally favorable view but not unanimous conviction. UnitedHealth Group Receives Consensus Rating of Moderate Buy Negative Sentiment: Commercial insurance remains a key risk. Although Medicare profitability is improving, commercial medical costs continue to rise and the expected margin improvement has been delayed, potentially limiting earnings growth. UnitedHealth Stock’s Biggest Risk Sits in the Commercial Book Negative Sentiment: CEO Patrick Hugh Conway sold 1,169 shares for approximately $456,000, reducing his position by 7.09%. The sale was disclosed in an SEC filing and could add modest near-term pressure, although it represents a relatively small portion of his remaining holdings. SEC insider transaction filing Wall Street Analysts Forecast Growth UNH has been the subject of several research reports. Leerink Partners upped their target price on UnitedHealth Group from $400.00 to $462.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 17th. Royal Bank Of Canada upped their price objective on shares of UnitedHealth Group from $463.00 to $478.00 and gave the company an “outperform” rating in a research note on Friday, July 17th. HSBC lifted their target price on shares of UnitedHealth Group from $300.00 to $380.00 and gave the stock a “hold” rating in a research report on Monday, July 6th. Bank of America reaffirmed a “buy” rating on shares of UnitedHealth Group in a research note on Monday, July 20th. Finally, Zacks Research raised UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, UnitedHealth Group currently has an average rating of “Moderate Buy” and an average price target of $456.56.
Check Out Our Latest Research Report on UNH
UnitedHealth Group Price Performance Shares of NYSE UNH opened at $396.78 on Wednesday. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.78 and a quick ratio of 0.78. UnitedHealth Group Incorporated has a 1 year low of $255.96 and a 1 year high of $461.62. The company’s 50-day moving average is $413.51 and its 200 day moving average is $358.11. The stock has a market capitalization of $356.14 billion, a P/E ratio of 25.53, a P/E/G ratio of 1.38 and a beta of 0.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, beating the consensus estimate of $4.94 by $1.44. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The business had revenue of $112.03 billion during the quarter, compared to analyst estimates of $110.81 billion. During the same quarter last year, the firm posted $4.08 earnings per share. The company’s revenue for the quarter was up .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. On average, sell-side analysts expect that UnitedHealth Group Incorporated will post 19.82 earnings per share for the current year.
UnitedHealth Group Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be issued a $2.32 dividend. This represents a $9.28 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Monday, September 14th. UnitedHealth Group’s payout ratio is presently 59.72%.
UnitedHealth Group Profile (Free Report)
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.
Recommended Stories Five stocks we like better than UnitedHealth Group Pathward’s Credit Scare Tests Its Comeback Story Wiring the AI Boom: Rumble’s $13.7B Pivot StoneX: Too Far Too Fast? DICK’s Sporting Goods Faces Pain Now for a Bigger Prize Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
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Asset One Wealth Management LLC acquired a new stake in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 1,453 shares of the healthcare conglomerate’s stock, valued at approximately $608,000.
A number of other large investors also recently added to or reduced their stakes in UNH. BlackRock Inc. grew its holdings in UnitedHealth Group by 4.6% during the 2nd quarter. BlackRock Inc. now owns 76,863,061 shares of the healthcare conglomerate’s stock valued at $31,946,594,000 after buying an additional 3,395,530 shares in the last quarter. State Street Corp boosted its position in shares of UnitedHealth Group by 2.5% during the 4th quarter. State Street Corp now owns 45,232,170 shares of the healthcare conglomerate’s stock valued at $14,931,592,000 after acquiring an additional 1,119,834 shares during the last quarter. Capital World Investors increased its position in UnitedHealth Group by 3.8% in the fourth quarter. Capital World Investors now owns 22,591,042 shares of the healthcare conglomerate’s stock worth $7,457,723,000 after purchasing an additional 824,120 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in UnitedHealth Group by 3.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 18,829,054 shares of the healthcare conglomerate’s stock valued at $6,215,660,000 after purchasing an additional 680,077 shares in the last quarter. Finally, Capital International Investors grew its stake in shares of UnitedHealth Group by 6.6% in the 4th quarter. Capital International Investors now owns 18,655,111 shares of the healthcare conglomerate’s stock worth $6,158,734,000 after buying an additional 1,155,162 shares in the last quarter. 87.86% of the stock is owned by hedge funds and other institutional investors.
Key Stories Impacting UnitedHealth Group Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is viewed more favorably than Elevance Health, with analysts citing stronger earnings prospects, improving Medicare profitability, greater potential upside and a more attractive risk-reward profile. UnitedHealth vs. Elevance: Which Managed-Care Stock Is a Better Buy? Positive Sentiment: Recent quarterly results provide fundamental support: UnitedHealth exceeded EPS and revenue expectations, and management maintained fiscal 2026 earnings guidance of approximately $19.50 to $20.00 per share. The earnings beat has helped reinforce confidence in the company’s outlook. UnitedHealth Group stock holds near $399 as Q2 2026 earnings beat supports higher EPS guidance Positive Sentiment: Industry commentary remains constructive on managed-care companies, citing steady premium revenue, an aging U.S. population, digital transformation, diversified membership and potential benefits from strategic acquisitions. UnitedHealth is among the companies identified as positioned to benefit. Zacks Industry Outlook UnitedHealth, The Cigna, Humana, Centene and Molina Neutral Sentiment: Analysts collectively maintain a “Moderate Buy” rating, indicating a generally favorable view but not unanimous conviction. UnitedHealth Group Receives Consensus Rating of Moderate Buy Negative Sentiment: Commercial insurance remains a key risk. Although Medicare profitability is improving, commercial medical costs continue to rise and the expected margin improvement has been delayed, potentially limiting earnings growth. UnitedHealth Stock’s Biggest Risk Sits in the Commercial Book Negative Sentiment: CEO Patrick Hugh Conway sold 1,169 shares for approximately $456,000, reducing his position by 7.09%. The sale was disclosed in an SEC filing and could add modest near-term pressure, although it represents a relatively small portion of his remaining holdings. SEC insider transaction filing Wall Street Analysts Forecast Growth UNH has been the subject of a number of analyst reports. Mizuho increased their price target on shares of UnitedHealth Group from $470.00 to $493.00 and gave the company an “outperform” rating in a report on Monday, July 20th. Weiss Ratings downgraded UnitedHealth Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, July 28th. BMO Capital Markets set a $512.00 target price on UnitedHealth Group in a research report on Tuesday, July 21st. JPMorgan Chase & Co. boosted their price objective on shares of UnitedHealth Group from $466.00 to $516.00 and gave the company an “overweight” rating in a research report on Tuesday, July 21st. Finally, Royal Bank Of Canada upped their price target on shares of UnitedHealth Group from $463.00 to $478.00 and gave the company an “outperform” rating in a report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $456.56. Read Our Latest Analysis on UNH
UnitedHealth Group Stock Down 0.5% Shares of NYSE UNH opened at $396.78 on Wednesday. The stock has a 50 day moving average price of $413.51 and a 200 day moving average price of $358.11. The firm has a market capitalization of $356.14 billion, a price-to-earnings ratio of 25.53, a PEG ratio of 1.38 and a beta of 0.62. UnitedHealth Group Incorporated has a 52-week low of $255.96 and a 52-week high of $461.62. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.78 and a current ratio of 0.78.
UnitedHealth Group (NYSE:UNH – Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, beating the consensus estimate of $4.94 by $1.44. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The firm had revenue of $112.03 billion for the quarter, compared to analyst estimates of $110.81 billion. During the same quarter last year, the firm posted $4.08 earnings per share. The business’s revenue for the quarter was up .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Sell-side analysts expect that UnitedHealth Group Incorporated will post 19.82 earnings per share for the current year.
UnitedHealth Group Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be issued a dividend of $2.32 per share. This represents a $9.28 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Monday, September 14th. UnitedHealth Group’s dividend payout ratio (DPR) is presently 59.72%.
Insiders Place Their Bets In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 1,169 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $390.00, for a total transaction of $455,910.00. Following the completion of the sale, the chief executive officer owned 15,328 shares in the company, valued at $5,977,920. This represents a 7.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.19% of the stock is currently owned by corporate insiders.
UnitedHealth Group Profile (Free Report)
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.
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I think David Tepper made a mistake selling UnitedHealth Group (UNH -0.53%), and not a small mistake either. When I look at what this company is doing and where healthcare is headed, I would rather buy the stock than walk away.
For context, here's what happened: Tepper is a billionaire hedge fund manager, the founder and president of Appaloosa Management. Tepper didn't trim his stake in UnitedHealth. He sold every share, about 90,000 in total, refocusing his portfolio toward artificial intelligence (AI) with purchases of Amazon (AMZN +3.97%), Micron (MU -0.27%), and Taiwan Semiconductor (TSM -2.29%), which now account for nearly 40% of his fund. That tells me his move was about concentrating on a narrower theme, not about UnitedHealth losing its edge. In earlier filings, UnitedHealth ranked among his top positions, accounting for more than 10% of the portfolio, indicating he once saw it as a core holding.
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Is UnitedHealth a sell? So what changed? The obvious worry is medical cost pressure, especially from GLP‑1 weight loss drugs and broader inflation in care. UnitedHealth's Q2 2026 numbers show medical costs of $75.36 billion and a medical care ratio of 86.7%, down from 89.4% a year earlier but still above the mid-80s range the company had framed as its target (lower is better). Some investors see that as a sign that margins will stay under pressure and that insurers will never fully catch up to medical care's rising cost curve. Tepper may have decided that the headache was not worth the trouble.
Image source: Getty Images.
When I dig into the details, I see something different. UnitedHealth is not sitting still and hoping costs fall. It's reshaping how care is delivered across its UnitedHealthcare insurance arm and Optum pharmacy management services. On GLP‑1 drugs, the company has drawn a clear line, covering them for diabetes and cardiovascular risk under tight medical necessity rules and restricting coverage for weight loss alone. It has launched programs like Total Weight Support to combine medication with coaching and digital tools, which gives it a way to manage outcomes rather than paying for pills without structure. That kind of strategy matters when drug costs can top $1,000 per member each month.
At the same time, UnitedHealth is attacking administrative costs, which is where a lot of margin lives. Management plans to invest about $1.5 to $1.6 billion in AI in 2026, including a generative AI platform aimed at automating claims and back office work. Optum Rx has already used AI to cut call center volume by 25%, trim prior authorization times from hours to less than 30 seconds, and reduce denials and appeals by large double-digit percentages. Optum Health is rolling out ambient listening for doctors, with a target of 70% of employed providers this year and 90% by year's end, which saves clinical time and reduces burnout. Those changes don't show up in one quarter, but they change the unit economics of the business over time.
UnitedHealth's latest results hint at that shift. Operating margin rose from 4.6% to 7.1% year over year, aided by a lower medical care ratio and improved cost management, even as underlying trends remained elevated. Membership remains strong, and the mix continues to tilt toward Optum services, which carry higher margins than pure insurance. The company's forecast still calls for double-digit percentage gains in adjusted earnings for 2026, supported by a balance of pricing, care management, and productivity gains.
UnitedHealth is adapting and not falling behind To me, all this looks like a franchise adapting to a changing healthcare landscape, not one losing control. GLP‑1 drugs will remain a challenge, but they also reduce complications from diabetes and cardiovascular disease, which, over time, can lower hospital costs borne by insurers. AI and workflow changes will take friction out of claims and prior authorization, which helps offset rising clinical spending. UnitedHealth sits at the intersection of those trends, with scale and data that smaller players can't match.
So should investors follow Tepper out of the stock? I don't think so. If your goal is to bet only on AI chips or high growth stocks, you won't find that profile here. If your goal is to own a company that touches tens of millions of patients, runs one of the most advanced health services platforms in the country, and has a clear plan to use technology to manage cost and experience, UnitedHealth still belongs in a long-term portfolio.
Ausdal Financial Partners Inc. reduced its position in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 15.6% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 16,887 shares of the healthcare conglomerate’s stock after selling 3,115 shares during the quarter. Ausdal Financial Partners Inc.’s holdings in UnitedHealth Group were worth $7,018,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently made changes to their positions in the business. Sarver Vrooman Wealth Advisors purchased a new stake in UnitedHealth Group in the fourth quarter valued at about $25,000. Aberdeen Wealth Management LLC acquired a new position in shares of UnitedHealth Group during the second quarter valued at about $31,000. Anfield Capital Management LLC boosted its stake in UnitedHealth Group by 220.0% in the 4th quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate’s stock worth $26,000 after purchasing an additional 55 shares in the last quarter. Joseph Group Capital Management acquired a new position in UnitedHealth Group during the 4th quarter valued at approximately $27,000. Finally, Nalls Sherbakoff Group LLC purchased a new position in shares of UnitedHealth Group in the fourth quarter worth $27,000. Institutional investors and hedge funds own 87.86% of the company’s stock.
Insiders Place Their Bets In related news, CEO Patrick Hugh Conway sold 1,169 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $390.00, for a total value of $455,910.00. Following the completion of the transaction, the chief executive officer owned 15,328 shares of the company’s stock, valued at approximately $5,977,920. This represents a 7.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.19% of the company’s stock.
Analyst Ratings Changes Several equities analysts recently issued reports on UNH shares. Royal Bank Of Canada upped their target price on UnitedHealth Group from $463.00 to $478.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. Wells Fargo & Company increased their price objective on UnitedHealth Group from $397.00 to $485.00 and gave the company an “overweight” rating in a report on Monday, July 13th. DA Davidson set a $512.00 target price on UnitedHealth Group in a report on Tuesday, July 21st. UBS Group increased their price target on shares of UnitedHealth Group from $460.00 to $490.00 and gave the stock a “buy” rating in a report on Friday, July 17th. Finally, Zacks Research raised shares of UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $456.56. Get Our Latest Analysis on UnitedHealth Group
UnitedHealth Group Trading Down 1.6% Shares of NYSE:UNH opened at $394.57 on Friday. The company has a market capitalization of $354.16 billion, a PE ratio of 25.39, a PEG ratio of 1.39 and a beta of 0.62. UnitedHealth Group Incorporated has a 12-month low of $255.96 and a 12-month high of $461.62. The business has a 50 day moving average of $413.42 and a two-hundred day moving average of $359.88. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.66.
UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share for the quarter, beating the consensus estimate of $4.94 by $1.44. The firm had revenue of $112.03 billion during the quarter, compared to analyst estimates of $110.81 billion. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The business’s quarterly revenue was up .4% on a year-over-year basis. During the same period in the previous year, the firm earned $4.08 EPS. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. As a group, analysts forecast that UnitedHealth Group Incorporated will post 19.82 EPS for the current year.
UnitedHealth Group Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th will be given a dividend of $2.32 per share. The ex-dividend date is Monday, September 14th. This represents a $9.28 dividend on an annualized basis and a dividend yield of 2.4%. UnitedHealth Group’s dividend payout ratio (DPR) is 59.72%.
UnitedHealth Group Profile (Free Report)
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.
Further Reading Five stocks we like better than UnitedHealth Group Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape SEC Probe Puts Wall Street Leverage Risk Back in Focus A Bearish-Dollar Options Surge Raises the Stakes for Warsh at Jackson Hole Five Below’s Turnaround Is Working—But Has the Stock Run Too Far? Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
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The basics of investing are fairly simple: Buy low, sell high. It can become tricky when you're not sure what's low or high, and an important part of learning how to invest is becoming familiar with valuation techniques.
But despite the very elementary directive to buy at the low and some glaringly high valuations, many investors still get caught up in the hype of exciting stocks and expect them to keep going higher. More experienced investors know that massive run-ups and astronomical valuations are unsustainable, and people who buy after a stock jumps can be left holding the bag.
If you want to be a successful investor, the mistake to avoid is investing in overvalued stocks.
Greedy and fearful Often, the best time to buy is after a stock plunges. That's counterintuitive, but savvy investors know that the disconnect between a stock price and a company's fundamentals offers the greatest opportunities when the price is low and the fundamentals are strong. Many investors miss those opportunities out of fear; they see a falling price and worry about whether it will get back up.
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Warren Buffett is probably the best-known value investor. Value investing involves finding stocks trading below their intrinsic value, with the expectation that their prices will rise. One of his most famous quotes is, "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." Others become fearful when stocks plummet, but smart investors know that's exactly the time to buy.
One recent example is when Berkshire Hathaway bought UnitedHealth Group (UNH -0.53%) stock last year. The stock had plummeted after management cut its profit outlook. UnitedHealth is the largest medical insurer in the country, and Buffett and his team understood that was a rare buying opportunity. Berkshire Hathaway bought the stake in the 2025 second quarter and sold it in the 2026 first quarter, when Abel closed out several small positions. It had gained 24% from it's drop in May 2025 to the middle of January 2026, around the time Abel might have sold it.
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Top stocks can keep growing Investors shouldn't conflate a high price tag with an overvalued stock, though. Some stocks can continue delivering for investors even when they've already minted millionaires. Berkshire Hathaway, for another good example, didn't buy Amazon stock until 2019 or Alphabet stock until last year.
In fact, you'll sometimes get the best deals after the hype dies down and the stock has proven itself; that's when it becomes a value.
When you see other investors chase the latest trend, resist the urge to invest in overvalued stocks. Keep to top stocks that are reasonably priced, and you'll be prepared for whatever the market brings.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Greenspring Advisors LLC purchased a new stake in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 3,329 shares of the healthcare conglomerate’s stock, valued at approximately $1,384,000.
A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Sarver Vrooman Wealth Advisors acquired a new position in UnitedHealth Group in the 4th quarter worth approximately $25,000. Anfield Capital Management LLC boosted its holdings in shares of UnitedHealth Group by 220.0% in the 4th quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate’s stock valued at $26,000 after acquiring an additional 55 shares during the last quarter. Joseph Group Capital Management purchased a new position in shares of UnitedHealth Group during the fourth quarter worth $27,000. Nalls Sherbakoff Group LLC purchased a new stake in UnitedHealth Group in the fourth quarter valued at $27,000. Finally, Lifetime Wealth Management P.C. purchased a new position in shares of UnitedHealth Group during the 4th quarter valued at about $29,000. Institutional investors and hedge funds own 87.86% of the company’s stock.
Insider Transactions at UnitedHealth Group In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 500 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total value of $205,000.00. Following the completion of the sale, the chief executive officer owned 16,497 shares in the company, valued at approximately $6,763,770. This represents a 2.94% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.19% of the company’s stock.
Analysts Set New Price Targets Several research firms recently commented on UNH. KeyCorp raised their target price on UnitedHealth Group from $400.00 to $475.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. Leerink Partners raised their price objective on shares of UnitedHealth Group from $400.00 to $462.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 17th. Sanford C. Bernstein reiterated an “outperform” rating on shares of UnitedHealth Group in a research note on Tuesday, July 21st. Royal Bank Of Canada raised their price target on shares of UnitedHealth Group from $463.00 to $478.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. Finally, Bank of America reiterated a “buy” rating on shares of UnitedHealth Group in a research report on Monday, July 20th. Two research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $455.92. View Our Latest Stock Report on UnitedHealth Group
UnitedHealth Group Trading Up 0.2% UNH stock opened at $390.94 on Monday. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.66. UnitedHealth Group Incorporated has a 12-month low of $255.96 and a 12-month high of $461.62. The stock has a market cap of $350.90 billion, a price-to-earnings ratio of 25.16, a PEG ratio of 1.35 and a beta of 0.62. The business’s 50-day moving average is $413.99 and its 200 day moving average is $356.45.
UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, beating the consensus estimate of $4.94 by $1.44. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The firm had revenue of $112.03 billion during the quarter, compared to the consensus estimate of $110.81 billion. During the same period in the prior year, the company earned $4.08 EPS. The firm’s revenue was up .4% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. On average, sell-side analysts anticipate that UnitedHealth Group Incorporated will post 19.81 EPS for the current fiscal year.
UnitedHealth Group Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be given a dividend of $2.32 per share. The ex-dividend date is Monday, September 14th. This represents a $9.28 dividend on an annualized basis and a yield of 2.4%. UnitedHealth Group’s payout ratio is presently 59.72%.
UnitedHealth Group News Roundup Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation UnitedHealth Group Profile (Free Report)
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.
Further Reading Five stocks we like better than UnitedHealth Group VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
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Callan Family Office LLC purchased a new position in shares of UnitedHealth Group Incorporated (NYSE: UNH) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 59,730 shares of the healthcare conglomerate's stock, valued at approximately $24,825,000. UnitedHealth Group accounts for approximately 0.5%
Bowie Capital Management LLC acquired a new stake in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 221,244 shares of the healthcare conglomerate’s stock, valued at approximately $91,956,000. UnitedHealth Group makes up 3.9% of Bowie Capital Management LLC’s holdings, making the stock its 10th biggest holding.
A number of other institutional investors have also recently added to or reduced their stakes in UNH. Sarver Vrooman Wealth Advisors acquired a new stake in shares of UnitedHealth Group in the fourth quarter valued at about $25,000. Anfield Capital Management LLC raised its position in shares of UnitedHealth Group by 220.0% during the 4th quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate’s stock worth $26,000 after purchasing an additional 55 shares during the last quarter. Joseph Group Capital Management acquired a new stake in UnitedHealth Group in the 4th quarter worth about $27,000. Nalls Sherbakoff Group LLC acquired a new position in shares of UnitedHealth Group during the fourth quarter valued at approximately $27,000. Finally, Lifetime Wealth Management P.C. acquired a new stake in shares of UnitedHealth Group in the fourth quarter worth approximately $29,000. Institutional investors and hedge funds own 87.86% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts have weighed in on UNH shares. UBS Group raised their price objective on UnitedHealth Group from $460.00 to $490.00 and gave the company a “buy” rating in a report on Friday, July 17th. Wells Fargo & Company increased their target price on shares of UnitedHealth Group from $397.00 to $485.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. Cantor Fitzgerald restated an “overweight” rating on shares of UnitedHealth Group in a research report on Thursday, June 11th. Zacks Research upgraded shares of UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. Finally, Leerink Partners boosted their target price on UnitedHealth Group from $400.00 to $462.00 and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Two research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, UnitedHealth Group currently has a consensus rating of “Moderate Buy” and a consensus target price of $455.92.
View Our Latest Report on UnitedHealth Group UnitedHealth Group Price Performance NYSE:UNH opened at $390.94 on Monday. UnitedHealth Group Incorporated has a 52 week low of $255.96 and a 52 week high of $461.62. The stock’s fifty day moving average is $413.99 and its two-hundred day moving average is $356.45. The company has a market capitalization of $350.90 billion, a P/E ratio of 25.16, a P/E/G ratio of 1.35 and a beta of 0.62. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.66.
UnitedHealth Group (NYSE:UNH – Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The business had revenue of $112.03 billion during the quarter, compared to analysts’ expectations of $110.81 billion. During the same period in the prior year, the business posted $4.08 EPS. The company’s revenue was up .4% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Equities analysts expect that UnitedHealth Group Incorporated will post 19.81 EPS for the current year.
UnitedHealth Group Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be issued a $2.32 dividend. The ex-dividend date of this dividend is Monday, September 14th. This represents a $9.28 annualized dividend and a yield of 2.4%. UnitedHealth Group’s dividend payout ratio (DPR) is 59.72%.
UnitedHealth Group News Roundup Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation Insider Buying and Selling In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 500 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total value of $205,000.00. Following the sale, the chief executive officer directly owned 16,497 shares of the company’s stock, valued at approximately $6,763,770. This represents a 2.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.19% of the stock is owned by company insiders.
(Free Report)
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.
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Bell & Brown Wealth Advisors LLC purchased a new position in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 14,604 shares of the healthcare conglomerate’s stock, valued at approximately $6,070,000. UnitedHealth Group comprises 1.8% of Bell & Brown Wealth Advisors LLC’s investment portfolio, making the stock its 19th largest position.
A number of other institutional investors and hedge funds have also made changes to their positions in UNH. Northcape Wealth Management LLC bought a new stake in shares of UnitedHealth Group in the 2nd quarter worth about $272,000. Edmond DE Rothschild Holding S.A. purchased a new position in UnitedHealth Group in the second quarter worth about $14,281,000. Uptick Partners LLC purchased a new stake in UnitedHealth Group during the second quarter valued at approximately $210,000. CM Wealth Advisors LLC bought a new stake in shares of UnitedHealth Group in the 2nd quarter valued at approximately $399,000. Finally, Madison Asset Management LLC bought a new position in shares of UnitedHealth Group during the 2nd quarter valued at approximately $17,614,000. 87.86% of the stock is owned by hedge funds and other institutional investors.
Insider Activity at UnitedHealth Group In other news, CEO Patrick Hugh Conway sold 500 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $410.00, for a total value of $205,000.00. Following the completion of the sale, the chief executive officer owned 16,497 shares of the company’s stock, valued at $6,763,770. This trade represents a 2.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.19% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts have commented on UNH shares. UBS Group lifted their price objective on shares of UnitedHealth Group from $460.00 to $490.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. JPMorgan Chase & Co. raised their target price on shares of UnitedHealth Group from $466.00 to $516.00 and gave the stock an “overweight” rating in a report on Tuesday, July 21st. Morgan Stanley upped their price target on shares of UnitedHealth Group from $468.00 to $529.00 and gave the company an “overweight” rating in a report on Friday, July 17th. KeyCorp raised their price objective on shares of UnitedHealth Group from $400.00 to $475.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Finally, Robert W. Baird raised UnitedHealth Group from an “underperform” rating to a “neutral” rating and upped their target price for the company from $287.00 to $453.00 in a research note on Thursday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $455.92. View Our Latest Stock Analysis on UNH
UnitedHealth Group Trading Up 1.6% Shares of NYSE UNH opened at $390.94 on Friday. The business has a fifty day moving average price of $413.99 and a 200 day moving average price of $355.96. UnitedHealth Group Incorporated has a 1-year low of $255.96 and a 1-year high of $461.62. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.78 and a quick ratio of 0.78. The stock has a market capitalization of $350.90 billion, a P/E ratio of 25.16, a price-to-earnings-growth ratio of 1.36 and a beta of 0.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last announced its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The business had revenue of $112.03 billion during the quarter, compared to the consensus estimate of $110.81 billion. During the same period in the previous year, the company posted $4.08 earnings per share. The firm’s revenue was up .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Equities research analysts expect that UnitedHealth Group Incorporated will post 19.81 EPS for the current fiscal year.
UnitedHealth Group Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Monday, September 14th will be issued a $2.32 dividend. This represents a $9.28 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Monday, September 14th. UnitedHealth Group’s payout ratio is currently 59.72%.
UnitedHealth Group News Summary Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation UnitedHealth Group Company Profile (Free Report)
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.
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Alpine Woods Capital Investors LLC purchased a new position in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 1,888 shares of the healthcare conglomerate’s stock, valued at approximately $785,000.
A number of other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in UnitedHealth Group by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 91,600,260 shares of the healthcare conglomerate’s stock valued at $30,238,162,000 after purchasing an additional 995,210 shares during the period. BlackRock Inc. raised its holdings in UnitedHealth Group by 4.6% in the second quarter. BlackRock Inc. now owns 76,863,061 shares of the healthcare conglomerate’s stock valued at $31,946,594,000 after acquiring an additional 3,395,530 shares in the last quarter. State Street Corp grew its holdings in UnitedHealth Group by 2.5% during the 4th quarter. State Street Corp now owns 45,232,170 shares of the healthcare conglomerate’s stock worth $14,931,592,000 after acquiring an additional 1,119,834 shares in the last quarter. Capital World Investors lifted its position in UnitedHealth Group by 3.8% in the fourth quarter. Capital World Investors now owns 22,591,042 shares of the healthcare conglomerate’s stock valued at $7,457,723,000 after acquiring an additional 824,120 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its position in UnitedHealth Group by 3.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 18,829,054 shares of the healthcare conglomerate’s stock worth $6,215,660,000 after acquiring an additional 680,077 shares during the period. 87.86% of the stock is owned by hedge funds and other institutional investors.
UnitedHealth Group News Summary Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation Insider Buying and Selling In other news, CEO Patrick Hugh Conway sold 500 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total transaction of $205,000.00. Following the sale, the chief executive officer directly owned 16,497 shares of the company’s stock, valued at $6,763,770. This represents a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.19% of the stock is currently owned by corporate insiders. Wall Street Analysts Forecast Growth Several equities analysts have weighed in on UNH shares. UBS Group raised their price target on UnitedHealth Group from $460.00 to $490.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. Oppenheimer upped their price objective on shares of UnitedHealth Group from $420.00 to $500.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. Weiss Ratings downgraded UnitedHealth Group from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, July 28th. Mizuho increased their target price on UnitedHealth Group from $470.00 to $493.00 and gave the stock an “outperform” rating in a report on Monday, July 20th. Finally, Piper Sandler set a $477.00 price objective on shares of UnitedHealth Group in a research note on Thursday, July 16th. Two analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $455.92.
View Our Latest Stock Analysis on UnitedHealth Group
UnitedHealth Group Stock Up 1.6% Shares of UnitedHealth Group stock opened at $390.94 on Friday. The company has a market cap of $350.90 billion, a P/E ratio of 25.16, a P/E/G ratio of 1.34 and a beta of 0.62. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.66. The stock has a 50-day moving average price of $413.99 and a 200 day moving average price of $355.96. UnitedHealth Group Incorporated has a 1 year low of $255.96 and a 1 year high of $461.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last released its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The company had revenue of $112.03 billion during the quarter, compared to the consensus estimate of $110.81 billion. During the same quarter in the prior year, the firm earned $4.08 EPS. The company’s revenue was up .4% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. As a group, analysts expect that UnitedHealth Group Incorporated will post 19.69 EPS for the current fiscal year.
UnitedHealth Group Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th will be issued a dividend of $2.32 per share. The ex-dividend date of this dividend is Monday, September 14th. This represents a $9.28 annualized dividend and a dividend yield of 2.4%. UnitedHealth Group’s dividend payout ratio (DPR) is presently 59.72%.
UnitedHealth Group Profile (Free Report)
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.
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Avaii Wealth Management LLC acquired a new position in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 3,335 shares of the healthcare conglomerate’s stock, valued at approximately $1,386,000.
A number of other hedge funds and other institutional investors have also bought and sold shares of UNH. Sarver Vrooman Wealth Advisors purchased a new position in shares of UnitedHealth Group during the 4th quarter valued at $25,000. Anfield Capital Management LLC raised its stake in UnitedHealth Group by 220.0% during the 4th quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate’s stock valued at $26,000 after purchasing an additional 55 shares during the period. Joseph Group Capital Management purchased a new stake in UnitedHealth Group during the 4th quarter valued at approximately $27,000. Nalls Sherbakoff Group LLC purchased a new position in shares of UnitedHealth Group in the fourth quarter worth $27,000. Finally, Lifetime Wealth Management P.C. purchased a new position in UnitedHealth Group during the fourth quarter valued at $29,000. Hedge funds and other institutional investors own 87.86% of the company’s stock.
Insider Buying and Selling In other news, CEO Patrick Hugh Conway sold 500 shares of the company’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $410.00, for a total value of $205,000.00. Following the transaction, the chief executive officer owned 16,497 shares of the company’s stock, valued at $6,763,770. This represents a 2.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.19% of the stock is owned by corporate insiders.
UnitedHealth Group Stock Performance Shares of UNH opened at $390.94 on Friday. The stock has a 50-day moving average of $413.99 and a two-hundred day moving average of $355.96. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.78 and a current ratio of 0.78. The stock has a market cap of $350.90 billion, a P/E ratio of 25.16, a P/E/G ratio of 1.34 and a beta of 0.62. UnitedHealth Group Incorporated has a one year low of $255.96 and a one year high of $461.62. UnitedHealth Group (NYSE:UNH – Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, topping the consensus estimate of $4.94 by $1.44. The business had revenue of $112.03 billion for the quarter, compared to analyst estimates of $110.81 billion. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The business’s quarterly revenue was up .4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.08 EPS. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. As a group, research analysts predict that UnitedHealth Group Incorporated will post 19.69 EPS for the current year.
UnitedHealth Group Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be issued a $2.32 dividend. The ex-dividend date of this dividend is Monday, September 14th. This represents a $9.28 dividend on an annualized basis and a dividend yield of 2.4%. UnitedHealth Group’s dividend payout ratio is currently 59.72%.
Analyst Ratings Changes Several research analysts have commented on UNH shares. Robert W. Baird raised shares of UnitedHealth Group from an “underperform” rating to a “neutral” rating and increased their price objective for the company from $287.00 to $453.00 in a report on Thursday, July 16th. KeyCorp increased their price target on UnitedHealth Group from $400.00 to $475.00 and gave the company an “overweight” rating in a research note on Tuesday, July 14th. UBS Group upped their price objective on UnitedHealth Group from $460.00 to $490.00 and gave the stock a “buy” rating in a report on Friday, July 17th. Weiss Ratings lowered shares of UnitedHealth Group from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, July 28th. Finally, Wall Street Zen raised shares of UnitedHealth Group from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, UnitedHealth Group presently has an average rating of “Moderate Buy” and a consensus price target of $455.92.
Read Our Latest Report on UnitedHealth Group
Key Headlines Impacting UnitedHealth Group Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation UnitedHealth Group Company Profile (Free Report)
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.
See Also Five stocks we like better than UnitedHealth Group Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
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Aljian Capital Management LLC cut its stake in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 20.8% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 9,618 shares of the healthcare conglomerate’s stock after selling 2,528 shares during the period. UnitedHealth Group accounts for about 0.7% of Aljian Capital Management LLC’s investment portfolio, making the stock its 20th biggest holding. Aljian Capital Management LLC’s holdings in UnitedHealth Group were worth $3,998,000 as of its most recent filing with the SEC.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Sarver Vrooman Wealth Advisors acquired a new stake in shares of UnitedHealth Group in the fourth quarter valued at approximately $25,000. Anfield Capital Management LLC increased its holdings in UnitedHealth Group by 220.0% in the 4th quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate’s stock valued at $26,000 after buying an additional 55 shares during the period. Joseph Group Capital Management bought a new stake in UnitedHealth Group during the fourth quarter worth $27,000. Nalls Sherbakoff Group LLC bought a new position in shares of UnitedHealth Group in the 4th quarter valued at $27,000. Finally, Lifetime Wealth Management P.C. acquired a new position in UnitedHealth Group during the fourth quarter worth about $29,000. 87.86% of the stock is owned by institutional investors.
More UnitedHealth Group News Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth is reportedly prioritizing Medicare Advantage profitability over rapid membership growth by tightening benefits, improving pricing and controlling costs. The strategy could support stronger margins and more sustainable earnings, even if enrollment growth moderates. Is UnitedHealth Finding a Better Path to Medicare Advantage Growth? Positive Sentiment: Zacks Research added UNH to its Rank #1, or “Strong Buy,” lists for overall stocks, value stocks and income stocks. The repeated favorable rankings may reinforce investor confidence in the shares. New Strong Buy Stocks for August 21st Positive Sentiment: Analysts raised several forward EPS estimates, including Q1 2028 to $7.36 from $6.78 and Q2 2028 to $7.19 from $5.84. A separate report also noted an increase in the Q1 EPS estimate, while Zacks maintained a Strong Buy rating. Q1 EPS Estimate for UnitedHealth Group Increased by Analyst Neutral Sentiment: Forecast revisions were mixed: Q3 2027 EPS was reduced to $4.74 from $4.81 and Q4 2027 to $4.07 from $4.12, partially offsetting the increases for 2028. Negative Sentiment: Aon expects U.S. employer health-care costs to rise 9.5% in 2027. Persistent medical-cost inflation could pressure insurers’ margins and increase pricing, benefit and utilization-management challenges for UnitedHealth. AON Sees No Relief From Health-Cost Inflation Insider Activity In other news, CEO Patrick Hugh Conway sold 500 shares of UnitedHealth Group stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total transaction of $205,000.00. Following the completion of the transaction, the chief executive officer directly owned 16,497 shares in the company, valued at approximately $6,763,770. This trade represents a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.19% of the stock is currently owned by insiders. UnitedHealth Group Stock Performance Shares of UNH stock opened at $390.94 on Friday. The company has a market capitalization of $350.90 billion, a P/E ratio of 25.16, a PEG ratio of 1.34 and a beta of 0.62. UnitedHealth Group Incorporated has a fifty-two week low of $255.96 and a fifty-two week high of $461.62. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.78 and a current ratio of 0.78. The stock has a 50 day moving average price of $413.99 and a two-hundred day moving average price of $355.96.
UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. The company had revenue of $112.03 billion during the quarter, compared to analyst estimates of $110.81 billion. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. UnitedHealth Group’s revenue for the quarter was up .4% on a year-over-year basis. During the same period in the prior year, the business posted $4.08 earnings per share. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Analysts expect that UnitedHealth Group Incorporated will post 19.69 earnings per share for the current year.
UnitedHealth Group Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th will be issued a dividend of $2.32 per share. This represents a $9.28 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Monday, September 14th. UnitedHealth Group’s payout ratio is 59.72%.
Wall Street Analyst Weigh In Several research analysts have commented on the company. Bank of America reaffirmed a “buy” rating on shares of UnitedHealth Group in a report on Monday, July 20th. Piper Sandler set a $477.00 price target on shares of UnitedHealth Group in a report on Thursday, July 16th. UBS Group raised their target price on UnitedHealth Group from $460.00 to $490.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Wall Street Zen upgraded shares of UnitedHealth Group from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Finally, DA Davidson set a $512.00 price objective on UnitedHealth Group in a research note on Tuesday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $455.92.
Read Our Latest Research Report on UnitedHealth Group
UnitedHealth Group Profile (Free Report)
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.
Read More Five stocks we like better than UnitedHealth Group Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates?
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Key Takeaways UnitedHealth expects MA enrollment to fall by 1.1 million members as it exits unprofitable plans.Medicare margins are expected above 3% in 2026 as pricing and benefit changes improve the membership mix.UnitedHealth raised its 2026 adjusted EPS outlook to $19.50-$20 amid improving medical cost trends. UnitedHealth Group Incorporated (UNH - Free Report) is taking a more disciplined approach to Medicare Advantage (MA), with profitability increasingly taking precedence over membership expansion. This shift comes as elevated medical costs continue to challenge the industry and pressure insurers to reassess pricing, benefits and market participation.
UnitedHealthcare expects 2026 MA enrollment to decline by approximately 1.1 million members, reflecting targeted exits from unprofitable plans. However, Medicare margins are now expected to finish the year above 3%. The improvement reflects tighter benefit design, pricing actions and a more favorable membership mix, while the company expects Medicare medical cost trends to come below the initial estimate of near 10%.
Cost-control initiatives are also becoming an important part of the strategy. Network curation, care management, affordability programs and greater use of value-based care are helping contain medical expenses. Favorable claims experience and a lighter respiratory season have provided additional support. UNH’s consolidated medical care ratio improved to 86.7% in the second quarter from 89.4% a year ago. The company raised its 2026 adjusted EPS outlook to $19.50-$20. For 2027, benefit planning remains centered on current cost trends, with adjustments to benefits and selective market participation aimed at maintaining margin stability.
The strategy could place UnitedHealth on a more sustainable MA growth path, even as near-term enrollment remains under pressure. Improving medical cost trends and a gradual recovery in membership could strengthen the economics of UnitedHealth’s MA business. If these trends persist, UNH could emerge from its current reset with a more profitable MA business and a stronger foundation for long-term growth.
How Are Competitors Faring?Some of UNH’s major competitors in the medical space are Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) .
Humana remains heavily exposed to Medicare Advantage, making medical cost control and benefit optimization critical to its outlook. HUM is focusing on pricing, network management and operating efficiencies to restore margins while navigating membership pressure and elevated utilization across its MA portfolio.
Elevance Health is sharpening its Medicare Advantage strategy by prioritizing profitable growth over broad membership gains. Portfolio repositioning, disciplined plan design and a stronger focus on D-SNP and HMO offerings are improving performance, while care management and favorable claims trends support ELV’s path toward at least a 2% operating margin in 2026.
UnitedHealth’s Price Performance, Valuation & EstimatesShares of UNH have gained 25.2% in the past year compared with the industry’s growth of 21.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 17.96, above the industry average of 15.60. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.69 per share, implying 20.4% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Aon projects average U.S. employer health-plan costs to top $19,000 per employee in 2027.Medical use, chronic illness, costly claims and prescription drugs are driving health-care spending higher.WTW sees inflation boosting demand, while UNH and CNC are managing medical costs through pricing & controls. Aon plc (AON - Free Report) recently announced that it expects U.S. employer health-care costs to rise 9.5% in 2027, pushing average plan costs above $19,000 per employee. The forecast, based on its Health Value Initiative database, covers more than 1,100 employers, 7.9 million employees and $135 billion of 2026 health-care spending. Aon expects many companies to take steps to soften that increase.
The pressure is broad. Higher use of medical services, more chronic illness and a growing number of expensive claims are lifting spending. Prescription drugs remain another major driver, especially specialty medicines and GLP-1 therapies, as their use expands into cardiovascular disease, sleep apnea and chronic kidney disease. Aon also pointed to more detailed provider documentation and coding, including technology-assisted coding, as a factor that can raise billed charges in some cases.
Employers are already carrying most of the burden. Their average cost rose 8.8% in 2026 to $14,432 per employee, while employee payroll contributions increased 6.4% to $3,130. Aon says employers now fund about 82% of total plan costs, making health benefits a bigger business-planning issue. The report says 2027 costs would extend a long period of healthcare inflation that employers have faced.
Why This Matters Beyond the Benefits BudgetThe size and persistence of the increase are what make Aon’s findings important. The projected rise would mark a fourth straight year of employer health-cost growth close to double digits. Even after employers changed plan designs and used cost controls, total plan costs increased 8.3% in 2026 to $17,562 per employee. The middle 50% of employers saw increases ranging from 5.5% to 11.5%, showing that the pressure is not confined to a small group.
Employees are feeling it too. Their total health spending is expected to reach $5,297 in 2026, including $3,130 in payroll premiums and $2,167 in out-of-pocket costs. Out-of-pocket spending alone rose 10.2%. Across industries, employer cost increases ranged from 6.5% in health care to 9.8% in finance and insurance.
Another year of steep increases can force companies to rethink benefits, hiring and compensation. Employers may raise contributions, change deductibles, narrow provider networks or lean harder on care-management programs. They also have stronger incentives to scrutinize pharmacy spending, network contracts and high-cost claims. In short, medical inflation is becoming a financial-planning problem, not simply a benefits-department problem. That squeeze can also affect workers’ budgets and spending patterns.
What it Means for Companies Like AON, WTW, UNH & CNCFor AON and Willis Towers Watson Public Limited Company (WTW - Free Report) , rising health costs can create more demand for their services. Employers need help redesigning benefits, comparing networks, managing pharmacy costs and using data to identify spending problems. Aon’s Health Solutions generated $818 million of second-quarter 2026 revenues and 5% organic growth. Its response includes tools such as Network Analyzer, designed to examine network performance, utilization and cost drivers. WTW, which currently has a Zacks Rank #2 (Buy), is seeing the same tailwind: its Health business posted 8% organic growth in the second quarter, and management specifically cited high health-care inflation as a demand driver for its specialty solutions.
The Zacks Consensus Estimate for Willis Towers Watson’s 2026 and 2027 EPS are currently pegged at $19.77 and $22.57, signaling 15.8% and 14.1% year-over-year growth, respectively. Both witnessed nine upward revisions over the past month, against no movement in the opposite direction. WTW beat earnings estimates in each of the past four quarters with an average surprise of 3.9%.
While higher costs can support demand for AON and WTW’s services, the equation is different for health insurers. UnitedHealth Group Incorporated (UNH - Free Report) has already said commercial medical costs remain stubbornly high and above expectations. When UnitedHealthcare bears the claims risk, faster utilization and drug inflation can push up the medical care ratio unless premiums keep pace. The company is responding through benefit design, care-management models, network curation and selective market participation.
Also, UNH has an important cushion: its self-funded commercial business is much larger than its risk-based business. It ended the second quarter with around 22.3 million commercial fee-based members versus only 7.7 million commercial risk members. Meanwhile, improving cost trends and management actions helped lower UNH’s medical care ratio to 86.7% in the second quarter from 89.4% a year ago.
UnitedHealth currently sports a Zacks Rank #1 (Strong Buy). The consensus estimate for its 2026 and 2027 EPS are currently pegged at $19.69 and $22.43, indicating 20.4% and 13.9% year-over-year increases, respectively. Both estimates have seen two upward revisions over the past month, with no cuts.UNH beat earnings estimates in each of the past four quarters with an average surprise of 12.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The impact is different for insurers with less exposure to employer-sponsored commercial plans and greater dependence on government programs.
Centene Corporation (CNC - Free Report) is one such company with less direct exposure to employer-sponsored coverage because its commercial business is primarily concentrated in the ACA Marketplace. Still, many of the same medical-cost pressures apply. Centene nevertheless improved its second-quarter commercial health-benefits ratio to 79.2% from 90.6% a year ago, helped by better pricing and risk transfer. Management is already taking a state-by-state approach to 2027 Marketplace pricing, with margin restoration remaining the priority rather than pursuing membership growth at any cost. Its Medicaid HBR was 93.9% in the second quarter, with management citing progress in medical-cost management.
Centene also currently sports a Zacks Rank #1. The consensus mark for its 2026 and 2027 EPS is currently pegged at $4.89 and $5.35, indicating 135.1% and 9.4% year-over-year jumps, respectively. These estimates witnessed nine upward revisions each over the past month, against no downward movement. CNC beat earnings estimates in each of the past four quarters, with an average surprise of 151.3%.
Final WordsOverall, persistent health-care inflation should continue to support demand for cost-management, benefits consulting and data-driven solutions, benefiting firms such as WTW. At the same time, health insurers will need disciplined pricing, tighter medical-cost controls and careful market participation to protect margins. UNH and CNC are already showing signs of improvement in managing medical expenses and pricing their businesses appropriately. Against this backdrop, WTW, UNH and CNC remain attractive names to add to your portfolio, with all three currently carrying favorable ratings.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Mercury General Corporation (MCY - Free Report) : This automobile-focused property and casualty insurer from the United States has seen the Zacks Consensus Estimate for its current year earnings increasing 12% over the last 60 days.
Assembly Biosciences, Inc. (ASMB - Free Report) : This clinical-stage biotechnology company has seen the Zacks Consensus Estimate for its current year earnings increasing 20% over the last 60 days.
Onto Innovation Inc. (ONTO - Free Report) : This manufacturer of process control tools for optical metrology has seen the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.
Bassett Furniture Industries, Incorporated (BSET - Free Report) : This home furnishings company has seen the Zacks Consensus Estimate for its current year earnings increasing 7.2% over the last 60 days.
UnitedHealth Group Incorporated (UNH - Free Report) : This healthcare company has seen the Zacks Consensus Estimate for its current year earnings increasing 7.5% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bank of New York Mellon Corp boosted its holdings in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 6.1% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 10,704,994 shares of the healthcare conglomerate’s stock after buying an additional 616,723 shares during the period. UnitedHealth Group makes up about 0.7% of Bank of New York Mellon Corp’s investment portfolio, making the stock its 22nd biggest position. Bank of New York Mellon Corp owned approximately 1.18% of UnitedHealth Group worth $4,449,317,000 at the end of the most recent quarter.
Several other institutional investors also recently modified their holdings of the stock. LFG Wealth Partners LLC boosted its stake in UnitedHealth Group by 3.3% during the 2nd quarter. LFG Wealth Partners LLC now owns 853 shares of the healthcare conglomerate’s stock worth $355,000 after acquiring an additional 27 shares during the last quarter. Synergy Financial Group LTD increased its holdings in UnitedHealth Group by 3.1% during the 2nd quarter. Synergy Financial Group LTD now owns 887 shares of the healthcare conglomerate’s stock worth $369,000 after purchasing an additional 27 shares in the last quarter. Ares Financial Consulting LLC boosted its position in UnitedHealth Group by 7.2% during the 2nd quarter. Ares Financial Consulting LLC now owns 419 shares of the healthcare conglomerate’s stock worth $174,000 after acquiring an additional 28 shares during the last quarter. Rockland Trust Co. boosted its holdings in UnitedHealth Group by 1.1% during the second quarter. Rockland Trust Co. now owns 2,589 shares of the healthcare conglomerate’s stock worth $1,076,000 after purchasing an additional 29 shares during the last quarter. Finally, Matrix Trust Co grew its holdings in shares of UnitedHealth Group by 24.8% in the 2nd quarter. Matrix Trust Co now owns 146 shares of the healthcare conglomerate’s stock valued at $61,000 after acquiring an additional 29 shares in the last quarter. 87.86% of the stock is currently owned by institutional investors and hedge funds.
Analyst Ratings Changes Several equities research analysts have recently commented on UNH shares. BMO Capital Markets set a $512.00 price objective on UnitedHealth Group in a report on Tuesday, July 21st. Sanford C. Bernstein restated an “outperform” rating on shares of UnitedHealth Group in a report on Tuesday, July 21st. DA Davidson set a $512.00 price target on shares of UnitedHealth Group in a research report on Tuesday, July 21st. Truist Financial raised their price objective on UnitedHealth Group from $440.00 to $480.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Finally, Royal Bank Of Canada boosted their target price on shares of UnitedHealth Group from $463.00 to $478.00 and gave the company an “outperform” rating in a research report on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, UnitedHealth Group currently has an average rating of “Moderate Buy” and an average price target of $455.92.
Get Our Latest Report on UNH UnitedHealth Group Stock Performance UnitedHealth Group stock opened at $388.03 on Thursday. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.78 and a quick ratio of 0.78. UnitedHealth Group Incorporated has a 1 year low of $255.96 and a 1 year high of $461.62. The company has a market capitalization of $348.29 billion, a P/E ratio of 24.97, a P/E/G ratio of 1.37 and a beta of 0.62. The business has a 50 day moving average of $414.75 and a 200-day moving average of $355.03.
UnitedHealth Group (NYSE:UNH – Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.94 by $1.44. The firm had revenue of $112.03 billion during the quarter, compared to analysts’ expectations of $110.81 billion. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The business’s revenue was up .4% on a year-over-year basis. During the same period last year, the company earned $4.08 earnings per share. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. On average, equities research analysts predict that UnitedHealth Group Incorporated will post 19.69 earnings per share for the current year.
UnitedHealth Group Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be given a dividend of $2.32 per share. This represents a $9.28 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Monday, September 14th. UnitedHealth Group’s dividend payout ratio (DPR) is presently 59.72%.
Insider Buying and Selling at UnitedHealth Group In other news, CEO Patrick Hugh Conway sold 500 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $410.00, for a total value of $205,000.00. Following the completion of the transaction, the chief executive officer directly owned 16,497 shares of the company’s stock, valued at $6,763,770. This represents a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.19% of the stock is owned by insiders.
UnitedHealth Group News Summary Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: Analysts raised earnings forecasts. Zacks Research increased its estimates for Q1 2027 EPS to $7.12, Q2 2027 EPS to $6.35, fiscal 2027 EPS to $22.28 and fiscal 2028 EPS to $25.74. Zacks maintained a “Strong-Buy” rating, signaling expectations for continued earnings recovery. Zacks Research earnings estimates Positive Sentiment: Valuation and operating trends could support a recovery. A Zacks analysis said improving medical costs, higher earnings estimates and shareholder capital returns make UnitedHealth appear reasonably valued at approximately 18.39 times forward earnings, although regulatory risks remain. UnitedHealth valuation analysis Positive Sentiment: The dividend remains a support for income-focused investors. UnitedHealth authorized a dividend while facing governance litigation, reinforcing its capital-return appeal, though the payout does not remove the company’s broader legal risks. UnitedHealth dividend authorization (Free Report)
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.
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Alberta Investment Management Corp purchased a new position in UnitedHealth Group Incorporated (NYSE: UNH) during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 42,400 shares of the healthcare conglomerate's stock, valued at approximately $17,623,000. Several other hedge funds also recently bought
Key Takeaways UnitedHealth's medical care ratio improved, easing pressure from elevated healthcare utilization.EPS estimates for 2026 and 2027 rose five times in the past month, with no downward revisions.UNH's capital returns remain strong, with dividend yield above the industry level. UnitedHealth Group Incorporated (UNH - Free Report) , one of the nation’s leading healthcare plan providers, is currently trading at 18.39X forward 12-month earnings, below its five-year median P/E of 19.14X. While this suggests a modest discount to its historical valuation, the stock still trades above the Zacks Medical – HMOs industry average of 16X, indicating that investors continue to pay a premium for UnitedHealth’s scale, diversified operations and earnings potential. The stock currently carries a Value Score of B.
That raises an important question: Does UNH deserve that premium as it works through medical costs, regulatory pressure and shifting market conditions? Humana Inc. (HUM - Free Report) and Elevance Health, Inc. (ELV - Free Report) trade at 29.59X and 13.97X forward earnings, respectively, highlighting the wide valuation gap within the managed care group.
Image Source: Zacks Investment Research
UNH Is Having a Good YearUnitedHealth shares have gained 19.3% year to date, ahead of the S&P 500’s 12.6% advance but slightly behind the industry’s 20.3% increase. Performance among major peers has been mixed. Humana has surged 49.1%, while Elevance has gained 13.6%.
YTD Price Performance – UNH, HUM, ELV, Industry & S&P 500 Image Source: Zacks Investment Research
Despite the rally, Wall Street sees more room to run. The average analyst price target stands at $481.52, implying about a 21.7% upside from current levels. Targets range from $380 to $529, showing differing views on its recovery.
Lower MCR Offers a Key ReliefOne of the biggest reasons investors are warming to the stock is the improvement in medical costs. UnitedHealth’s adjusted medical care ratio improved to 86.7% in the second quarter of 2026 from 89.4% a year earlier. Medical costs also declined to $75.4 billion from $78.6 billion.
The improvement is important as elevated utilization, particularly among Medicare Advantage members, has pressured margins across the managed care industry over the last few years. Better pricing, disciplined benefit design and cost management suggest those pressures may be easing for UNH. Investors now want to see whether lower medical costs can be sustained and support earnings growth through 2027 and beyond.
Estimate Revisions Are Trending HigherThe Zacks Consensus Estimate for 2026 EPS is now pegged at $19.69, indicating 20.4% year-over-year growth. Analysts have raised the estimate five times over the past month, with no downward revisions. The consensus estimate for revenues is pegged at $446.85 billion, implying a 0.2% decline from a year ago.
For 2027, EPS is now projected to grow to $22.42, marking a 13.8% improvement. It has also seen five upward estimate revisions in the past month, against no downward movements. Revenues are pegged at $457.52 billion, indicating 2.4% growth from a year ago.
The company has also beaten earnings estimates in each of the past four quarters, delivering an average surprise of 12.1%.
Growth Drivers Remain IntactUnitedHealth still has several advantages working in its favor. Its scale, broad healthcare platform and large data resources give it a strong position across insurance, pharmacy services and healthcare delivery. An aging population, higher chronic disease rates and rising demand for healthcare should provide long-term support for the business.
Optum remains an important part of that story, helping diversify earnings beyond the insurance operation. The company is also changing its pharmacy benefit manager model toward a more transparent, fee-based structure. If executed well, the shift could strengthen Optum’s competitive position while addressing concerns about traditional PBM practices.
Capital Returns Add to the AppealUnitedHealth also continues to generate significant cash and return it to shareholders. The company returned more than $13 billion through dividends and share repurchases in 2025. Through mid-July 2026, it had repurchased $4 billion of stock and remained on track to buy back at least $5 billion for the year. It also paid $4.1 billion in dividends during the first half of 2026.
The stock’s 2.36% dividend yield is above the industry average of 2.02%, adding to its appeal as the recovery develops.
Risks to Keep an Eye OnThe turnaround is not without risks. Regulatory scrutiny remains a major concern, with investigations involving Medicare billing practices and parts of the Optum business potentially increasing compliance costs and headline pressure. Also, the Internal Revenue Service is scrutinizing UnitedHealth’s internal transactions involving UnitedHealthcare and Optum over potential tax savings, adding regulatory risk and uncertainty over possible additional taxes or penalties.
Although medical costs improved during the second quarter, it remains another key variable. If utilization, especially in Medicare Advantage, rises faster than pricing can offset it, margin improvement could stall.
Membership trends also deserve attention. UnitedHealth expects total medical membership to fall to 46.945-47.495 million in 2026 from nearly 49.760 million in 2025. Growth in commercial fee-based membership may offset some of that decline, but the shift remains an important part of the outlook.
The Bottom LineUnitedHealth’s improving medical care ratio, upward earnings estimate revisions and strong capital returns point to a healthier outlook after a challenging period. While regulatory scrutiny, membership declines and the risk of renewed medical cost pressure remain concerns, the company’s improving operations under CEO Stephen J. Hemsley and long-term growth drivers provide a solid foundation for recovery.
With shares trading below their five-year median P/E and Wall Street seeing further upside, the risk-reward profile remains favorable. UnitedHealth currently carries a Zacks Rank #2 (Buy), supporting a constructive view of the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Centric Wealth Management grew its position in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 80.1% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 39,178 shares of the healthcare conglomerate’s stock after acquiring an additional 17,425 shares during the period. UnitedHealth Group accounts for 2.3% of Centric Wealth Management’s portfolio, making the stock its 9th largest holding. Centric Wealth Management’s holdings in UnitedHealth Group were worth $15,166,000 at the end of the most recent quarter.
Several other institutional investors have also recently bought and sold shares of the business. Norges Bank acquired a new position in UnitedHealth Group during the 4th quarter worth about $4,376,167,000. T. Rowe Price Investment Management Inc. raised its stake in shares of UnitedHealth Group by 141.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 4,109,029 shares of the healthcare conglomerate’s stock worth $1,356,432,000 after acquiring an additional 2,410,128 shares during the last quarter. Cardano Risk Management B.V. increased its holdings in shares of UnitedHealth Group by 864.4% in the fourth quarter. Cardano Risk Management B.V. now owns 2,523,700 shares of the healthcare conglomerate’s stock valued at $833,099,000 after purchasing an additional 2,262,006 shares in the last quarter. Bank of America Corp DE increased its stake in shares of UnitedHealth Group by 21.8% in the 1st quarter. Bank of America Corp DE now owns 11,713,684 shares of the healthcare conglomerate’s stock valued at $3,169,606,000 after buying an additional 2,097,859 shares during the period. Finally, Hsbc Holdings PLC boosted its holdings in UnitedHealth Group by 87.5% in the fourth quarter. Hsbc Holdings PLC now owns 3,916,041 shares of the healthcare conglomerate’s stock valued at $1,294,367,000 after acquiring an additional 1,826,948 shares during the last quarter. Institutional investors own 87.86% of the company’s stock.
Insider Transactions at UnitedHealth Group In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 500 shares of UnitedHealth Group stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $410.00, for a total value of $205,000.00. Following the sale, the chief executive officer owned 16,497 shares of the company’s stock, valued at $6,763,770. This trade represents a 2.94% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 0.19% of the company’s stock.
UnitedHealth Group Trading Down 0.4% NYSE UNH opened at $394.16 on Wednesday. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.78 and a quick ratio of 0.78. The stock’s 50-day moving average is $415.15 and its 200-day moving average is $354.35. UnitedHealth Group Incorporated has a one year low of $255.96 and a one year high of $461.62. The firm has a market cap of $353.79 billion, a P/E ratio of 25.36, a P/E/G ratio of 1.40 and a beta of 0.62. UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The business had revenue of $112.03 billion during the quarter, compared to analysts’ expectations of $110.81 billion. During the same period in the prior year, the business earned $4.08 EPS. UnitedHealth Group’s revenue for the quarter was up .4% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Sell-side analysts anticipate that UnitedHealth Group Incorporated will post 19.69 earnings per share for the current fiscal year.
UnitedHealth Group Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Monday, September 14th will be given a $2.32 dividend. This represents a $9.28 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Monday, September 14th. UnitedHealth Group’s payout ratio is currently 59.72%.
Key Headlines Impacting UnitedHealth Group Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: Wall Street analysts remain broadly optimistic on UnitedHealth (UNH), with the average brokerage recommendation indicating a favorable view. However, analyst ratings can be subject to overly positive bias. Wall Street Bulls Look Optimistic About UnitedHealth Positive Sentiment: UnitedHealth authorized a dividend, reinforcing shareholder returns and potentially supporting investor confidence while the company faces broader governance scrutiny. UnitedHealth Authorizes Dividend Amid Governance Lawsuit Neutral Sentiment: The reported guilty plea by Luigi Mangione in the federal case involving the killing of former UnitedHealthcare CEO Brian Thompson could provide additional legal clarity, but the direct effect on UnitedHealth’s operations and valuation appears limited. Luigi Mangione Reportedly Set to Plead Guilty Neutral Sentiment: An analysis argues that much of UnitedHealth’s expected margin recovery may already be reflected in the stock, making future revenue and membership growth important tests for further upside. UnitedHealth Margin Recovery Is Priced In Negative Sentiment: A shareholder lawsuit alleges that UnitedHealth executives ignored governance and cybersecurity weaknesses, discontinued an internal Medicare billing audit and failed to address risks preceding the Change Healthcare cyberattack. The allegations could increase litigation, regulatory and reputational risks. Investor Suit Says UnitedHealth Ignored Governance and Cybersecurity Gaps Negative Sentiment: A related derivative suit reportedly says patients won about 90% of appeals against coverage denials generated by an artificial-intelligence system and alleges executives knew about the issue. If substantiated, the claims could bring additional compliance costs, damages and scrutiny. UNH Patients Win 90 Percent of AI Denial Appeals Wall Street Analysts Forecast Growth A number of research firms have commented on UNH. Wells Fargo & Company lifted their target price on shares of UnitedHealth Group from $397.00 to $485.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Wall Street Zen raised UnitedHealth Group from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Cantor Fitzgerald reissued an “overweight” rating on shares of UnitedHealth Group in a research note on Thursday, June 11th. UBS Group boosted their target price on UnitedHealth Group from $460.00 to $490.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. Finally, DA Davidson set a $512.00 price objective on shares of UnitedHealth Group in a report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, UnitedHealth Group has an average rating of “Moderate Buy” and a consensus target price of $455.92.
View Our Latest Stock Analysis on UNH
UnitedHealth Group Profile (Free Report)
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.
See Also Five stocks we like better than UnitedHealth Group The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH – Free Report).
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--(BUSINESS WIRE)--UnitedHealthcare has expanded access to its child and family behavioral coaching program to approximately 13 million eligible members, increasing availability of early behavioral health support for children, teens and caregivers through its commercial plans. The coaching program is intended to help support families with low-severity behavioral health concerns, with a focus on early intervention and education. The expansion follows increased interest from employers and familie.
New investors who are just starting out and building up their portfolios might feel overwhelmed with what to invest in these days. Many stocks are soaring due to artificial intelligence and other tech-related opportunities. Meanwhile, valuations are high across the stock market as a whole, and some stocks may not be appealing despite their strong performances.
Three dividend stocks, however, that can be excellent options that offer an appealing mix of value, stability, and high yields are ExxonMobil (XOM +1.62%), UnitedHealth Group (UNH +0.75%), and Verizon Communications (VZ +1.20%). Here's why these can be ideal investments for new investors.
Image source: Getty Images.
ExxonMobilInvesting in a top oil and gas giant such as ExxonMobil is a great move for investors for a few reasons. First and foremost, it's a fairly stable investment, as the company's dominant position in the industry ensures that it may not only succeed under adverse market conditions but also thrive when oil prices are high, as they are now. The company's vast portfolio of assets and financial strength make it a fantastic long-term investment.
Another great reason is its dividend, which currently yields 2.6%. That's above the S&P 500 average of 1%, but it's admittedly a bit lower than usual for Exxon. The main reason it isn't higher, however, is because the stock has been doing so well -- it's up 34% since the start of the year. The company has also been raising its dividend payments for decades, giving investors ample reason to simply buy and hold.
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Lastly, there's the inflation angle. For investors worried about inflation and seeking a potential hedge, investing in Exxon can be a good move, as it'll benefit from rising oil prices. That's why, overall, this can be a no-brainer option for new investors beginning to build their portfolios and seeking a top dividend stock, as Exxon checks many boxes.
UnitedHealth GroupAnother quality dividend stock for new investors to consider is UnitedHealth Group. This is a top health insurance company in the country, and thus, demand for its services is likely to remain high for the foreseeable future. Healthcare is a necessity consumers can't do without, and UnitedHealth can grow due to population growth and rising rates.
It's a behemoth in the industry, raking in $450 billion in revenue over the past year. While its profits may not seem significant relative to that, totaling $14 billion, this is still a highly profitable company overall. And those strong profits enable UnitedHealth to offer a great, growing dividend. Currently, the stock pays 2.4%. Over the past five years, the company has also increased its dividend by 60%.
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As with Exxon, UnitedHealth's yield would be even higher if not for its solid gains this year, as it's up around 20% thus far in 2026. For long-term investors, however, now can be as good a time as any to buy the stock, as it can be an excellent pillar for any portfolio.
Verizon CommunicationsThe final stock on this list is Verizon Communications. It's in a third sector, which will give investors a balanced mix of stocks. And the sector that Verizon dominates in, telecom, is a fairly attractive one for dividend investors due to its stability. While it may not be healthcare, these days, mobile phones and internet access are necessities for customers, so it will also generate a fairly consistent stream of income.
Verizon generates just modest single-digit growth, but its business is rock-solid and fairly stable. With a payout ratio of around 70%, it also has plenty of room to continue raising its dividend, as it has in the past. Verizon has boosted its payout for an impressive 20 consecutive years. At 5.9%, it's easily the highest yield on this list, and with more dividend increases likely to come in the future, this makes for another terrific stock to buy right now.
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Shares of Verizon are up 18% this year, but they still look fairly undervalued, trading at less than 10 times the company's expected future earnings (based on analyst estimates). This is a good dividend investment and an excellent value buy.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about UnitedHealth Group (UNH - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
UnitedHealth currently has an average brokerage recommendation (ABR) of 1.39, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.39 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 20 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 74.1% and 11.1% of all recommendations.
Brokerage Recommendation Trends for UNH
Check price target & stock forecast for UnitedHealth here>>>
While the ABR calls for buying UnitedHealth, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in UNH?Looking at the earnings estimate revisions for UnitedHealth, the Zacks Consensus Estimate for the current year has increased 7.1% over the past month to $19.69.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for UnitedHealth. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for UnitedHealth may serve as a useful guide for investors.
Aviso Wealth Management grew its position in UnitedHealth Group Incorporated (NYSE: UNH) by 85.4% during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 3,209 shares of the healthcare conglomerate's stock after buying an additional 1,478 shares during the period. Aviso Wealth Management's holdings in
Caitong International Asset Management Co. Ltd purchased a new stake in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 2,284 shares of the healthcare conglomerate’s stock, valued at approximately $949,000.
Several other institutional investors also recently modified their holdings of UNH. Vanguard Group Inc. boosted its stake in UnitedHealth Group by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 91,600,260 shares of the healthcare conglomerate’s stock worth $30,238,162,000 after buying an additional 995,210 shares in the last quarter. State Street Corp lifted its holdings in shares of UnitedHealth Group by 2.5% during the 4th quarter. State Street Corp now owns 45,232,170 shares of the healthcare conglomerate’s stock worth $14,931,592,000 after acquiring an additional 1,119,834 shares during the period. Capital World Investors boosted its position in shares of UnitedHealth Group by 3.8% during the 4th quarter. Capital World Investors now owns 22,591,042 shares of the healthcare conglomerate’s stock valued at $7,457,723,000 after acquiring an additional 824,120 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in UnitedHealth Group by 3.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 18,829,054 shares of the healthcare conglomerate’s stock worth $6,215,660,000 after purchasing an additional 680,077 shares in the last quarter. Finally, Capital International Investors boosted its holdings in UnitedHealth Group by 6.6% during the fourth quarter. Capital International Investors now owns 18,655,111 shares of the healthcare conglomerate’s stock valued at $6,158,734,000 after purchasing an additional 1,155,162 shares in the last quarter. Institutional investors and hedge funds own 87.86% of the company’s stock.
UnitedHealth Group Price Performance Shares of UNH stock opened at $401.52 on Monday. The firm’s 50 day moving average price is $415.74 and its two-hundred day moving average price is $352.85. The stock has a market cap of $360.40 billion, a PE ratio of 25.84, a PEG ratio of 1.40 and a beta of 0.62. UnitedHealth Group Incorporated has a 52-week low of $255.96 and a 52-week high of $461.62. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.78 and a current ratio of 0.78.
UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share for the quarter, beating analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The company had revenue of $112.03 billion for the quarter, compared to the consensus estimate of $110.81 billion. During the same quarter in the prior year, the business posted $4.08 EPS. The firm’s quarterly revenue was up .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. As a group, analysts forecast that UnitedHealth Group Incorporated will post 19.69 EPS for the current year.
UnitedHealth Group Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Monday, September 14th will be given a dividend of $2.32 per share. This represents a $9.28 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Monday, September 14th. UnitedHealth Group’s payout ratio is presently 59.72%.
Insider Buying and Selling at UnitedHealth Group In related news, CEO Patrick Hugh Conway sold 500 shares of UnitedHealth Group stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total transaction of $205,000.00. Following the transaction, the chief executive officer owned 16,497 shares of the company’s stock, valued at $6,763,770. This trade represents a 2.94% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.19% of the stock is owned by corporate insiders.
Wall Street Analysts Forecast Growth UNH has been the subject of several analyst reports. Robert W. Baird upgraded UnitedHealth Group from an “underperform” rating to a “neutral” rating and raised their target price for the stock from $287.00 to $453.00 in a research report on Thursday, July 16th. Argus raised UnitedHealth Group from a “hold” rating to a “buy” rating and set a $400.00 price objective for the company in a report on Wednesday, April 22nd. DA Davidson set a $512.00 target price on shares of UnitedHealth Group in a research report on Tuesday, July 21st. Royal Bank Of Canada upped their price objective on shares of UnitedHealth Group from $463.00 to $478.00 and gave the stock an “outperform” rating in a research note on Friday, July 17th. Finally, Erste Group Bank upgraded shares of UnitedHealth Group from a “hold” rating to a “buy” rating in a research note on Monday, April 27th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $455.92.
Check Out Our Latest Research Report on UnitedHealth Group
About UnitedHealth Group (Free Report)
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.
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Fox Run Management L.L.C. bought a new position in UnitedHealth Group Incorporated (NYSE: UNH) in the second quarter, according to its most recent filing with the SEC. The firm bought 1,999 shares of the healthcare conglomerate's stock, valued at approximately $831,000. A number of other hedge funds and other institutional investors have also
Boomfish Wealth Group LLC reduced its stake in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 17.4% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 6,125 shares of the healthcare conglomerate’s stock after selling 1,292 shares during the period. Boomfish Wealth Group LLC’s holdings in UnitedHealth Group were worth $2,546,000 at the end of the most recent quarter.
A number of other institutional investors have also made changes to their positions in UNH. Brighton Jones LLC grew its holdings in UnitedHealth Group by 176.2% during the fourth quarter. Brighton Jones LLC now owns 44,249 shares of the healthcare conglomerate’s stock valued at $22,384,000 after purchasing an additional 28,231 shares during the last quarter. Revolve Wealth Partners LLC grew its stake in UnitedHealth Group by 137.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 4,019 shares of the healthcare conglomerate’s stock valued at $2,033,000 after buying an additional 2,324 shares during the last quarter. CMT Capital Markets Trading GmbH bought a new position in UnitedHealth Group in the 2nd quarter worth $340,000. Flow Traders U.S. LLC acquired a new stake in shares of UnitedHealth Group in the second quarter valued at about $356,000. Finally, Jump Financial LLC acquired a new position in shares of UnitedHealth Group during the 2nd quarter worth about $377,000. 87.86% of the stock is owned by institutional investors.
Insider Activity at UnitedHealth Group In other news, CEO Patrick Hugh Conway sold 500 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total value of $205,000.00. Following the sale, the chief executive officer owned 16,497 shares of the company’s stock, valued at approximately $6,763,770. This represents a 2.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.19% of the company’s stock.
UnitedHealth Group Price Performance NYSE:UNH opened at $401.52 on Friday. The company has a market capitalization of $360.41 billion, a price-to-earnings ratio of 25.84, a PEG ratio of 1.40 and a beta of 0.62. The company has a 50-day moving average of $415.74 and a 200-day moving average of $352.85. UnitedHealth Group Incorporated has a 52 week low of $255.96 and a 52 week high of $461.62. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.80 and a current ratio of 0.78.
UnitedHealth Group (NYSE:UNH – Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, topping analysts’ consensus estimates of $4.94 by $1.44. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The firm had revenue of $112.03 billion during the quarter, compared to analysts’ expectations of $110.81 billion. During the same quarter last year, the company earned $4.08 earnings per share. The company’s revenue for the quarter was up .4% compared to the same quarter last year. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. As a group, equities research analysts anticipate that UnitedHealth Group Incorporated will post 19.69 earnings per share for the current fiscal year.
UnitedHealth Group Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Monday, September 14th will be issued a dividend of $2.32 per share. The ex-dividend date of this dividend is Monday, September 14th. This represents a $9.28 dividend on an annualized basis and a dividend yield of 2.3%. UnitedHealth Group’s dividend payout ratio (DPR) is presently 59.72%.
Analysts Set New Price Targets UNH has been the topic of several recent analyst reports. Truist Financial lifted their price target on UnitedHealth Group from $440.00 to $480.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. DA Davidson set a $512.00 target price on shares of UnitedHealth Group in a research note on Tuesday, July 21st. Morgan Stanley raised their price target on shares of UnitedHealth Group from $468.00 to $529.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Zacks Research raised shares of UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 13th. Finally, HC Wainwright set a $492.00 target price on UnitedHealth Group in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, UnitedHealth Group currently has a consensus rating of “Moderate Buy” and an average price target of $455.92.
Check Out Our Latest Research Report on UNH
UnitedHealth Group Profile (Free Report)
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.
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In the 2003 movie Bruce Almighty, a TV reporter named Bruce Nolan (played by Jim Carrey) asks God for a sign. Within seconds, a truck with a danger sign on the back passes him. Bruce, however, was completely oblivious to it.
Many investors could be similarly overlooking a warning sign that the market is flashing right now. Consumer sentiment hit a record low in May 2026 of 44.8, according to the University of Michigan Survey of Consumers. While the consumer sentiment index improved in June and July to 55.2, it's still well below the historical average.
Counterintuitively, though, low consumer sentiment may not be a cause for alarm. Savvy investors know that this could present a great opportunity to buy stocks -- especially certain ones.
Image source: Getty Images.
A bullish warning?
When consumers have negative views of the economy, it's usually a clear indication that something's wrong. The main problem right now is resurging inflation, driven largely by higher oil prices caused by the Iran war.
Americans aren't very optimistic about the near term. The University of Michigan's July survey found that consumers expect inflation of 4.2% in the year ahead. That level is higher than the latest Consumer Price Index (CPI) of 3.4%.
Does low consumer sentiment signal a sinking stock market? Surprisingly, the answer is "no." The U.S. Index of Consumer Sentiment has fallen below 60 fewer than 10 times since 1952. In most of those cases, the S&P 500 (^GSPC -0.17%) jumped by a double-digit percentage over the next 12 months.
There's a simple reason why a low Consumer Sentiment Index is usually a bullish sign: It's a lagging indicator. When consumers become especially pessimistic, they've already felt economic pain. However, as the old saying goes, "It's always darkest just before the dawn."
What are the best stocks to buy with the prevailing market dynamics? Because consumer sentiment could remain low for a while, it's best to choose stocks that hold up well during periods of negative consumer sentiment. But you also want stocks that should benefit from an overall market recovery.
Amazon (AMZN -0.94%) checks off both boxes. Profitero+ has ranked Amazon as the lowest-priced retailer for nine consecutive years. Consumers know they can buy products at attractive prices on Amazon's e-commerce platform.
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Of course, Amazon is as much an artificial intelligence (AI) stock as it is an e-commerce stock. Amazon Web Services (AWS) is the world's largest cloud services platform and continues to enjoy a strong tailwind with the surging adoption of AI. Importantly, this momentum should be sustained regardless of what happens with consumer spending.
The Coca-Cola Company (KO +0.33%) successfully weathered every consumer sentiment trough since the University of Michigan began conducting its survey. Coca-Cola's customers are loyal and buy the company's beverages even when economic conditions are unfavorable.
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Investors receive a nice extra from Coca-Cola in the form of its dividend. The beverage giant is a member of the Dividend Kings, an elite group of companies that have increased their dividends for at least 50 consecutive years. Coke's streak of dividend hikes currently stands at 64 years.
I'd also put UnitedHealth Group (UNH +0.67%) high on the list of stocks to buy with consumer sentiment in the dumpster. The healthcare leader is largely insulated from a downturn in consumer spending because people still need health insurance.
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UnitedHealth Group is also an appealing comeback story. Although the healthcare stock is still down more than 30% below its all-time peak, shares have soared in 2026 as UnitedHealth's bottom line has improved.
A key caveat
Low consumer sentiment doesn't guarantee an imminent stock market rally. And there have been a couple of times in the past when the market declined after the Consumer Sentiment Index dipped below 60.
Stocks of Amazon, Coca-Cola, and UnitedHealth Group could also be affected by other factors. For example, a slowdown in AI adoption could derail Amazon's growth. Coca-Cola's sales could be negatively affected if millions of Americans stopped going to restaurants to save money. UnitedHealth faces regulatory risks, especially with its Medicare plans.
That said, dismal consumer sentiment is usually a positive indicator for investors looking ahead to the next 12 months. These three stocks should be well-positioned to benefit from a market rally, but they're in better shape than most if the economy is turbulent.
Ballast Inc. raised its position in UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 11.4% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 17,484 shares of the healthcare conglomerate’s stock after purchasing an additional 1,791 shares during the quarter. UnitedHealth Group comprises 1.4% of Ballast Inc.’s investment portfolio, making the stock its 16th biggest position. Ballast Inc.’s holdings in UnitedHealth Group were worth $7,267,000 at the end of the most recent quarter.
A number of other large investors have also recently added to or reduced their stakes in the business. Vaughan David Investments LLC IL raised its holdings in shares of UnitedHealth Group by 2.7% in the 4th quarter. Vaughan David Investments LLC IL now owns 150,773 shares of the healthcare conglomerate’s stock worth $49,772,000 after purchasing an additional 3,934 shares during the period. Fideuram Intesa Sanpaolo Private Banking S.P.A. lifted its holdings in shares of UnitedHealth Group by 1,287.2% in the 1st quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. now owns 60,022 shares of the healthcare conglomerate’s stock worth $16,241,000 after acquiring an additional 55,695 shares during the last quarter. PBCay One RSC Ltd bought a new position in shares of UnitedHealth Group in the first quarter worth approximately $14,343,000. Vanguard Group Inc. increased its holdings in UnitedHealth Group by 1.1% during the 4th quarter. Vanguard Group Inc. now owns 91,600,260 shares of the healthcare conglomerate’s stock valued at $30,238,162,000 after purchasing an additional 995,210 shares during the period. Finally, Sumitomo Mitsui Financial Group Inc. boosted its stake in shares of UnitedHealth Group by 8.7% during the 4th quarter. Sumitomo Mitsui Financial Group Inc. now owns 102,260 shares of the healthcare conglomerate’s stock valued at $33,757,000 after purchasing an additional 8,226 shares in the last quarter. 87.86% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity In other news, CEO Patrick Hugh Conway sold 500 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $410.00, for a total transaction of $205,000.00. Following the completion of the transaction, the chief executive officer directly owned 16,497 shares in the company, valued at approximately $6,763,770. This represents a 2.94% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.19% of the stock is owned by company insiders.
UnitedHealth Group Price Performance NYSE UNH opened at $405.73 on Thursday. The company has a quick ratio of 0.80, a current ratio of 0.78 and a debt-to-equity ratio of 0.66. The firm has a market capitalization of $368.46 billion, a P/E ratio of 26.11, a PEG ratio of 1.40 and a beta of 0.62. The company has a 50-day moving average price of $415.68 and a 200-day moving average price of $352.20. UnitedHealth Group Incorporated has a 52 week low of $255.96 and a 52 week high of $461.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 EPS for the quarter, topping the consensus estimate of $4.94 by $1.44. The firm had revenue of $112.03 billion for the quarter, compared to the consensus estimate of $110.81 billion. UnitedHealth Group had a return on equity of 16.53% and a net margin of 3.14%.The business’s revenue for the quarter was up .4% compared to the same quarter last year. During the same quarter last year, the company earned $4.08 earnings per share. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. Equities research analysts anticipate that UnitedHealth Group Incorporated will post 19.69 earnings per share for the current year.
UnitedHealth Group Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Monday, September 14th will be issued a dividend of $2.32 per share. This represents a $9.28 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, September 14th. UnitedHealth Group’s dividend payout ratio is 59.72%.
UnitedHealth Group News Summary Here are the key news stories impacting UnitedHealth Group this week:
Positive Sentiment: UnitedHealth’s medical-cost trends are improving, supporting an earnings recovery. Medicare Advantage costs are reportedly running below the company’s prior assumptions, while 2026 Medicare margins are expected to exceed 3%. The company has also raised its UnitedHealthcare operating-earnings outlook to at least $12 billion and maintained adjusted 2026 EPS guidance of $19.50–$20.00. UnitedHealth’s Medicare Recovery Is Accelerating Positive Sentiment: The board authorized a quarterly dividend of $2.32 per share, payable September 22 to shareholders of record September 14. The dividend reinforces UNH’s income appeal and signals continued confidence in cash generation. UnitedHealth Group Board Authorizes Payment of Quarterly Dividend Positive Sentiment: Analyst sentiment remains broadly favorable, with a recent survey showing a median price target of $434.50 and several targets above $460. Investors may view the stock’s valuation as attractive if the earnings recovery continues. Neutral Sentiment: The recovery is not yet fully secured. Rising commercial medical costs and pricing decisions for 2027 could pressure earnings, while UnitedHealth’s operating margin remains below its historical level and management has described commercial-business repair as a multiyear process. Is UnitedHealth’s Margin Going Back to What It Was? Negative Sentiment: Mark Cuban urged institutional investors to pressure or divest from major health insurers unless they take action to reduce healthcare costs. The comments add to public and political scrutiny of insurers, potentially increasing reputational and regulatory pressure on UNH. Mark Cuban Urges Investors to Pressure Health Insurers Negative Sentiment: Ongoing discussion of potential state restrictions on UnitedHealth’s pharmacy-benefit-manager and retail operations, along with concerns about Medicare funding and utilization, remains a downside risk. A recent sale of shares by an Optum executive may also weigh modestly on sentiment. Wall Street Analyst Weigh In A number of research firms have weighed in on UNH. Truist Financial upped their target price on UnitedHealth Group from $440.00 to $480.00 and gave the stock a “buy” rating in a report on Tuesday, July 14th. JPMorgan Chase & Co. lifted their price target on UnitedHealth Group from $466.00 to $516.00 and gave the company an “overweight” rating in a research report on Tuesday, July 21st. Wells Fargo & Company raised their price objective on UnitedHealth Group from $397.00 to $485.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. KeyCorp upped their target price on shares of UnitedHealth Group from $400.00 to $475.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Finally, DA Davidson set a $512.00 price objective on shares of UnitedHealth Group in a research note on Tuesday, July 21st. Two research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $455.92.
View Our Latest Research Report on UNH
About UnitedHealth Group (Free Report)
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.
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Key Takeaways UNH's MCR fell to 86.7%, helping operating earnings rise 55% and lifting 2026 EPS guidance.Lower Medicare costs and value-based care are supporting UNH's cost-control efforts.$860 million in favorable development and rising commercial costs could challenge the recovery. UnitedHealth Group Incorporated’s (UNH - Free Report) second-quarter results show that its earnings performance is improving. The medical care ratio (MCR) fell to 86.7% from 89.4% a year ago, meaning the company spent less of its premium revenues on medical care and retained more for profits. This helped operating earnings rise 55%. UNH also raised its 2026 adjusted EPS guidance, reflecting confidence in its earnings recovery.
The trend is encouraging, particularly in Medicare. Medical costs are running below UNH’s original expectations, aided by better benefit planning, care management and changes in provider networks. OptumHealth is also making progress as it focuses more on value-based care and controls unnecessary medical spending. These trends suggest that the company’s cost-control efforts are beginning to show results.
Still, the 86.7% MCR may not fully reflect UNH’s underlying medical-cost trend. The quarter included $860 million of favorable prior-period medical development. At the same time, commercial medical costs are increasing at a rate exceeding 11%, caused by higher provider billing and coding intensity and specialty drug costs. This could keep pressure on commercial margins for longer.
UNH’s earnings rebound looks encouraging, but its durability remains the key issue. The company’s 2027 pricing and benefit decisions will be an important test. If the company can maintain pricing growth in line with rising medical costs, margin expansion could drive further earnings growth. Otherwise, sustained medical-cost pressure may constrain future earnings growth.
How Are UNH's Peers Positioned?UnitedHealth isn't alone; peers from the Medical space, including Elevance Health, Inc. (ELV - Free Report) and CVS Health Corporation (CVS - Free Report) , are also navigating changing medical cost trends.
Elevance Health’s second-quarter benefit expense ratio was 89.7%, up 80 basis points year over year, mainly due to higher medical costs in its government businesses. Still, ELV raised its 2026 adjusted EPS guidance to at least $27. This shows Elevance is using pricing and cost controls to protect margins.
CVS Health is showing encouraging cost-control trends. Its Aetna business benefited from lower medical costs in the second quarter, helping the company deliver strong earnings beat and raise its 2026 adjusted EPS guidance to $7.90-$8.10. However, CVS faces uncertainty heading into 2027 due to ongoing PBM and 340B-related pressures.
UNH’sPrice Performance, Valuation & EstimatesShares of UnitedHealth have risen 47.9% in the past 12 months compared with the industry’s 41% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, UNH trades at a forward price-to-earnings ratio of 18.83X compared with the industry average of 16.48X. UNH carries a Value Scoreof B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.69 per share, implying a 20.4% increase from the year-ago period’s level.
Image Source: Zacks Investment Research
UNH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
--(BUSINESS WIRE)--The UnitedHealth Group (NYSE: UNH) board of directors has authorized payment of a cash dividend of $2.32 per share, to be paid on September 22, 2026, to all shareholders of record of UNH common stock as of the close of business September 14, 2026. About UnitedHealth Group UnitedHealth Group (NYSE: UNH) is a healthcare and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and comp.
Bay Colony Advisory Group Inc d b a Bay Colony Advisors cut its holdings in shares of UnitedHealth Group Incorporated (NYSE:UNH – Free Report) by 64.9% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 1,646 shares of the healthcare conglomerate’s stock after selling 3,037 shares during the period. Bay Colony Advisory Group Inc d b a Bay Colony Advisors’ holdings in UnitedHealth Group were worth $684,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also made changes to their positions in UNH. Vanguard Group Inc. grew its position in shares of UnitedHealth Group by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 91,600,260 shares of the healthcare conglomerate’s stock valued at $30,238,162,000 after purchasing an additional 995,210 shares during the period. State Street Corp increased its stake in shares of UnitedHealth Group by 2.5% in the 4th quarter. State Street Corp now owns 45,232,170 shares of the healthcare conglomerate’s stock worth $14,931,592,000 after acquiring an additional 1,119,834 shares during the last quarter. Capital World Investors raised its stake in UnitedHealth Group by 3.8% during the fourth quarter. Capital World Investors now owns 22,591,042 shares of the healthcare conglomerate’s stock worth $7,457,723,000 after purchasing an additional 824,120 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in UnitedHealth Group by 3.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 18,829,054 shares of the healthcare conglomerate’s stock valued at $6,215,660,000 after acquiring an additional 680,077 shares during the last quarter. Finally, Capital International Investors lifted its stake in shares of UnitedHealth Group by 6.6% in the 4th quarter. Capital International Investors now owns 18,655,111 shares of the healthcare conglomerate’s stock valued at $6,158,734,000 after purchasing an additional 1,155,162 shares during the last quarter. 87.86% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades UNH has been the topic of several recent analyst reports. HC Wainwright set a $492.00 price objective on shares of UnitedHealth Group in a report on Wednesday, May 27th. Zacks Research upgraded UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. DA Davidson set a $512.00 target price on UnitedHealth Group in a report on Tuesday, July 21st. Robert W. Baird upgraded shares of UnitedHealth Group from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $287.00 to $453.00 in a research note on Thursday, July 16th. Finally, Royal Bank Of Canada upped their target price on shares of UnitedHealth Group from $463.00 to $478.00 and gave the stock an “outperform” rating in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, UnitedHealth Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $455.92.
Get Our Latest Stock Analysis on UnitedHealth Group
Insider Buying and Selling at UnitedHealth Group In other news, CEO Patrick Hugh Conway sold 500 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $410.00, for a total transaction of $205,000.00. Following the transaction, the chief executive officer directly owned 16,497 shares in the company, valued at $6,763,770. The trade was a 2.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.19% of the stock is currently owned by insiders.
UnitedHealth Group Trading Down 1.8% NYSE:UNH opened at $401.56 on Wednesday. The company has a market capitalization of $364.67 billion, a PE ratio of 25.84, a P/E/G ratio of 1.42 and a beta of 0.62. The stock’s 50 day moving average price is $415.13 and its 200 day moving average price is $351.84. The company has a quick ratio of 0.80, a current ratio of 0.78 and a debt-to-equity ratio of 0.66. UnitedHealth Group Incorporated has a 52-week low of $253.67 and a 52-week high of $461.62.
UnitedHealth Group (NYSE:UNH – Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The healthcare conglomerate reported $6.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.94 by $1.44. UnitedHealth Group had a net margin of 3.14% and a return on equity of 16.53%. The company had revenue of $112.03 billion for the quarter, compared to the consensus estimate of $110.81 billion. During the same period last year, the firm posted $4.08 EPS. UnitedHealth Group’s revenue for the quarter was up .4% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 19.500-20.000 EPS. On average, research analysts anticipate that UnitedHealth Group Incorporated will post 19.69 EPS for the current year.
UnitedHealth Group Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Monday, June 15th were given a $2.32 dividend. This is a positive change from UnitedHealth Group’s previous quarterly dividend of $2.21. The ex-dividend date was Monday, June 15th. This represents a $9.28 dividend on an annualized basis and a yield of 2.3%. UnitedHealth Group’s payout ratio is 59.72%.
UnitedHealth Group Profile (Free Report)
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.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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