UnitedHealth Group (NYSE:UNH) Shares Gap Down – Should You Sell?

UnitedHealth Group Incorporated (NYSE:UNH)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $351.64, but opened at $293.97. UnitedHealth Group shares last traded at $288.8780, with a volume of 22,890,586 shares trading hands.

Key UnitedHealth Group News

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

• Positive Sentiment: Q4 beat on EPS and segment strength — UnitedHealth slightly beat EPS expectations and Optum Rx was called out as a growth driver, supporting near-term earnings resilience. UnitedHealth Q4 Earnings Beat on Strong Optum Rx, Offers 2026 Outlook
• Positive Sentiment: Capital returns and turnaround narrative — analysts and MarketBeat note buybacks and a secure dividend, framing the pullback as a buying opportunity for long-term investors if management executes the turnaround. Trump Triggers Buying Opportunity in UnitedHealth Group
• Neutral Sentiment: Management stance and full release — company press materials and the earnings call outline progress on cost controls and a modest profit outlook, but include caveats and one-offs that leave guidance mixed. Review the full release and transcript for details. UnitedHealth Group Reports 2025 Results and Issues 2026 Outlook
• Negative Sentiment: Medicare Advantage rate proposal hit — a Trump administration proposal to keep Medicare Advantage payments roughly flat (headline ~0.09%) shocked expectations and pressured UNH and peers, triggering broad selling across insurers. Trump Administration proposes keeping steady Medicare rates paid to insurers, WSJ reports
• Negative Sentiment: Weak 2026 revenue outlook — UNH guided to roughly $439B of revenue for 2026 (implying about a 2% decline year‑over‑year), well below consensus, which is a principal driver of today’s sharp decline. UnitedHealth shares plunge on weak guidance, quarterly revenue miss
• Negative Sentiment: One‑time charges and restructuring — a reported ~$1.6B restructuring hit weighed on Q4 results and raises near-term execution risk as the company right‑sizes operations. UnitedHealth Takes $1.6 Billion Hit To Earnings Amid Restructuring
• Negative Sentiment: Market reaction and sector spillover — the stock’s plunge erased tens of billions in market value and dragged health-care ETFs and the Dow, amplifying volatility and prompting short-term selling pressure. ETFs in focus: UnitedHealth Group selloff ripples across health care funds

Analyst Ratings Changes

Several research firms have commented on UNH. UBS Group increased their price target on shares of UnitedHealth Group from $378.00 to $430.00 and gave the company a “buy” rating in a research report on Wednesday, October 29th. Royal Bank Of Canada boosted their price objective on UnitedHealth Group from $286.00 to $408.00 and gave the company an “outperform” rating in a research report on Wednesday, October 29th. Bank of America boosted their target price on shares of UnitedHealth Group from $350.00 to $390.00 and gave the company a “neutral” rating in a report on Wednesday, October 8th. Sanford C. Bernstein lifted their price objective on UnitedHealth Group from $433.00 to $440.00 and gave the company an “outperform” rating in a research note on Thursday, October 30th. Finally, Barclays boosted their target price on shares of UnitedHealth Group from $386.00 to $391.00 and gave the stock an “overweight” rating in a research note on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $386.33.

UnitedHealth Group Stock Down 19.6%

The firm has a market cap of $256.01 billion, a price-to-earnings ratio of 14.68, a P/E/G ratio of 2.15 and a beta of 0.42. The firm has a 50 day moving average price of $332.71 and a 200-day moving average price of $323.96. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.71.

UnitedHealth Group (NYSE:UNH) last posted its quarterly earnings data on Tuesday, January 27th. The healthcare conglomerate reported $2.11 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.02. UnitedHealth Group had a return on equity of 19.23% and a net margin of 4.04%.The company’s revenue for the quarter was up 12.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $6.81 earnings per share. UnitedHealth Group has set its FY 2026 guidance at 17.750- EPS. On average, equities analysts forecast that UnitedHealth Group Incorporated will post 29.54 EPS for the current year.

UnitedHealth Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Monday, December 8th were issued a $2.21 dividend. This represents a $8.84 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Monday, December 8th. UnitedHealth Group’s dividend payout ratio (DPR) is 46.14%.

Institutional Trading of UnitedHealth Group

Large investors have recently added to or reduced their stakes in the stock. LFA Lugano Financial Advisors SA purchased a new position in shares of UnitedHealth Group during the 2nd quarter valued at $25,000. Beacon Financial Strategies CORP bought a new position in UnitedHealth Group during the fourth quarter valued at approximately $26,000. Holos Integrated Wealth LLC bought a new position in shares of UnitedHealth Group during the 4th quarter valued at $29,000. Sagard Holdings Management Inc. bought a new position in UnitedHealth Group during the second quarter valued at about $29,000. Finally, Foster Dykema Cabot & Partners LLC raised its stake in shares of UnitedHealth Group by 69.4% in the 3rd quarter. Foster Dykema Cabot & Partners LLC now owns 83 shares of the healthcare conglomerate’s stock valued at $29,000 after acquiring an additional 34 shares in the last quarter. 87.86% of the stock is currently owned by institutional investors and hedge funds.

About UnitedHealth Group

UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.

UnitedHealthcare is the company’s benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.