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.