UnitedHealth Group (NYSE:UNH) Trading Down 19.7% – Here’s Why

UnitedHealth Group Incorporated (NYSE:UNH)’s stock price fell 19.7% during trading on Tuesday . The stock traded as low as $280.40 and last traded at $282.3230. 65,335,287 shares were traded during trading, an increase of 506% from the average session volume of 10,774,231 shares. The stock had previously closed at $351.64.

UnitedHealth Group News Roundup

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

• Positive Sentiment: Company beat Q4 EPS expectations modestly and management says cost-control actions should support profit recovery; this underpins the view that earnings can improve even as revenue is guided lower. UnitedHealth forecasts 2026 profit slightly above estimates (Reuters)
• Positive Sentiment: Capital returns remain a structural support: management plans on continued buybacks and the dividend is viewed as secure, giving some downside cushion for long-term investors. Trump Triggers Buying Opportunity in UnitedHealth Group (MarketBeat)
• Neutral Sentiment: Optum is undergoing a “back to basics” restructuring (market exits, contract changes) — this can reduce near-term revenue but aims to improve long‑term operational focus. For UnitedHealth’s Optum, It’s ‘Back To Basics’ With Smaller Footprint (Forbes)
• Neutral Sentiment: Political/insider-trade scrutiny surfaced after reporting that a congressman sold UNH shares shortly before the Medicare-rate headlines, adding reputational/regulatory noise but not an immediate business hit. Congressman sold UNH stock before Medicare comments (MSN)
• Negative Sentiment: Primary catalyst for the rout: the administration proposed keeping Medicare Advantage payments essentially flat for 2027, far below market expectations — this reduces revenue upside for insurers and is the biggest immediate negative driver. One Stock Is Behind the Dow’s Steep Drop (Investopedia)
• Negative Sentiment: UnitedHealth now expects 2026 revenue to decline (guidance ~ $439B), its first revenue drop in decades — that weaker top‑line outlook prompted heavy selling. UnitedHealth forecasts first revenue drop in nearly four decades (MSN)
• Negative Sentiment: Q4 included a large restructuring charge (~$1.6B) that pulled down reported results and highlights the near-term cost of the turnaround; combined with soft guidance, this amplifies investor concern. UnitedHealth Takes $1.6 Billion Hit To Earnings Amid Restructuring (Forbes)

Wall Street Analysts Forecast Growth

UNH has been the topic of a number of recent research reports. Jefferies Financial Group raised their target price on UnitedHealth Group from $317.00 to $409.00 and gave the company a “buy” rating in a report on Friday, October 17th. Morgan Stanley dropped their price target on shares of UnitedHealth Group from $411.00 to $409.00 and set an “overweight” rating on the stock in a research report on Friday. KeyCorp increased their price objective on shares of UnitedHealth Group from $350.00 to $400.00 and gave the company an “overweight” rating in a research note on Wednesday, October 8th. Mizuho raised their price objective on shares of UnitedHealth Group from $300.00 to $430.00 and gave the stock an “outperform” rating in a report on Thursday, October 9th. Finally, UBS Group lifted their price objective on UnitedHealth Group from $378.00 to $430.00 and gave the stock a “buy” rating in a report on Wednesday, October 29th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $386.33.

UnitedHealth Group Stock Down 19.7%

The company has a market capitalization of $255.74 billion, a P/E ratio of 14.74, a price-to-earnings-growth ratio of 2.15 and a beta of 0.42. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.71. The stock’s fifty day moving average is $332.71 and its 200 day moving average is $323.96.

UnitedHealth Group (NYSE:UNH) last released its quarterly earnings results on Tuesday, January 27th. The healthcare conglomerate reported $2.11 EPS for the quarter, beating 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%.During the same quarter last year, the business posted $6.81 earnings per share. UnitedHealth Group’s quarterly revenue was up 12.3% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 17.750- EPS. Research analysts predict that UnitedHealth Group Incorporated will post 29.54 EPS for the current fiscal year.

UnitedHealth Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, December 16th. Investors of record on Monday, December 8th were paid a $2.21 dividend. This represents a $8.84 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Monday, December 8th. UnitedHealth Group’s dividend payout ratio is presently 46.14%.

Institutional Trading of UnitedHealth Group

A number of hedge funds have recently modified their holdings of the business. Capital World Investors grew its stake in shares of UnitedHealth Group by 18.8% in the 3rd quarter. Capital World Investors now owns 21,766,922 shares of the healthcare conglomerate’s stock worth $7,516,107,000 after buying an additional 3,439,182 shares during the last quarter. Geode Capital Management LLC grew its position in UnitedHealth Group by 3.3% during the 2nd quarter. Geode Capital Management LLC now owns 21,312,182 shares of the healthcare conglomerate’s stock valued at $6,624,411,000 after purchasing an additional 675,075 shares during the last quarter. Capital International Investors raised its holdings in UnitedHealth Group by 11.1% in the third quarter. Capital International Investors now owns 17,499,949 shares of the healthcare conglomerate’s stock worth $6,042,710,000 after buying an additional 1,747,337 shares during the last quarter. Capital Research Global Investors increased its holdings in shares of UnitedHealth Group by 126.9% in the 3rd quarter. Capital Research Global Investors now owns 13,042,049 shares of the healthcare conglomerate’s stock worth $4,503,419,000 after purchasing an additional 7,293,009 shares in the last quarter. Finally, Norges Bank purchased a new stake in UnitedHealth Group during the second quarter valued at approximately $3,837,207,000. Institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Company Profile

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.