UnitedHealth Gets a Price Target Cut, Stock Dips 1.3%

UnitedHealth Gets a Price Target Cut, Stock Dips 1.3%

Snack-Sized Version:

UnitedHealth Group‘s stock dipped 1.3% after Robert W. Baird lowered their price target from $640 to $510. The stock traded as low as $414.32 before closing at $414.33. Other analysts followed suit, with Barclays, RBC, Raymond James, and Morgan Stanley all cutting their price targets on the stock. Despite this, UnitedHealth retains a consensus “Buy” rating and a target of $596.86. Institutional investors own the majority of the stock, with 87.86% held by them. Recent quarterly earnings showed $7.20 EPS, slightly below expectations of $7.29. Despite the dip, UnitedHealth recently paid a dividend of $2.10 per share, reflecting a 2.05% yield. Investors are waiting to see how the stock will rebound.

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UnitedHealth Group’s stock experienced a 1.3% dip following a downgrade from Robert W. Baird, who reduced their price target on the stock from $640 to $510. The shares traded as low as $414.32, marking a notable decline from the previous session. This drop is part of a broader trend, with several other analysts following suit. Barclays also decreased their price target, from $642 to $560, while Royal Bank of Canada set a lower target of $525. Raymond James and Morgan Stanley joined the bandwagon with price target cuts of their own. Despite these reductions, UnitedHealth Group still holds a “Buy” rating with an average target price of $596.86, based on a consensus of analysts.

Institutional investors dominate the company’s stock, holding 87.86% of shares, signaling strong institutional confidence despite the price adjustments. In the most recent quarter, UnitedHealth reported a slight miss on earnings expectations, posting $7.20 per share instead of the expected $7.29. However, revenue was close to expectations, coming in at $109.58 billion. This slight shortfall didn’t deter analysts from maintaining a generally positive outlook for the company. UnitedHealth’s financial health is reflected in a solid return on equity of 26.69%, although its profit margins are relatively modest at 3.60%.

On the bright side, the company continues to reward its shareholders with regular dividends. UnitedHealth recently paid a quarterly dividend of $2.10 per share, which reflects a 2.05% yield. The company’s strong payout ratio of 35.18% suggests that dividends will continue to be a feature for shareholders. Investors remain hopeful that the company will navigate through these analyst revisions and continue delivering long-term value. With a market cap of $372.49 billion and a relatively low beta of 0.61, UnitedHealth Group’s stock remains a key player in the healthcare sector, even as it faces some short-term turbulence.

Author

Rebekah Espino

Rebekah is constantly researching different industries and diving into what is really affecting businesses. From niche industries to large multi nationals, she loves to consume videos, articles and podcast about the latest financial news. She is a daily contributor on the Investing Snacks platform.