Zacks Research Has Negative Forecast for UNH FY2027 Earnings

Key Points

• Zacks Research has lowered its FY2027 earnings per share (EPS) estimate for UnitedHealth Group from $21.36 to $21.27, while the current consensus for FY2023 is $29.54 per share.
• Multiple analysts have revised their ratings and target prices for UnitedHealth Group, with Oppenheimer lowering its target from $400 to $325 and Robert W. Baird reducing its target from $312 to $198.
• UnitedHealth Group recently announced a quarterly dividend of $2.21, which equates to an annualized dividend of $8.84 and a yield of 2.9%.

UnitedHealth Group Incorporated (NYSE:UNH - Free Report) - Analysts at Zacks Research reduced their FY2027 earnings estimates for UnitedHealth Group in a research note issued to investors on Wednesday, August 20th. Zacks Research analyst Team now expects that the healthcare conglomerate will earn $21.27 per share for the year, down from their prior estimate of $21.36. The consensus estimate for UnitedHealth Group's current full-year earnings is $29.54 per share.

UnitedHealth Group (NYSE:UNH - Get Free Report) last announced its earnings results on Tuesday, July 29th. The healthcare conglomerate reported $4.08 EPS for the quarter, missing analysts' consensus estimates of $4.45 by ($0.37). UnitedHealth Group had a net margin of 5.04% and a return on equity of 23.32%. The business had revenue of $111.62 billion during the quarter, compared to analysts' expectations of $111.75 billion. During the same period in the previous year, the company posted $6.80 earnings per share. UnitedHealth Group's quarterly revenue was up 12.9% on a year-over-year basis. UnitedHealth Group has set its FY 2025 guidance at 16.000- EPS.

Other equities research analysts have also recently issued reports about the stock. Robert W. Baird reaffirmed an "underperform" rating and issued a $198.00 target price (down from $312.00) on shares of UnitedHealth Group in a report on Thursday, July 31st. Wall Street Zen cut shares of UnitedHealth Group from a "buy" rating to a "hold" rating in a report on Saturday, May 24th. Deutsche Bank Aktiengesellschaft cut their price target on shares of UnitedHealth Group from $521.00 to $362.00 and set a "buy" rating for the company in a report on Wednesday, May 14th. KeyCorp cut their price target on shares of UnitedHealth Group from $400.00 to $350.00 and set an "overweight" rating for the company in a report on Wednesday, July 30th. Finally, TD Securities reaffirmed a "hold" rating and issued a $308.00 target price (down from $520.00) on shares of UnitedHealth Group in a report on Monday, May 19th. Fifteen investment analysts have rated the stock with a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $365.38.

UnitedHealth Group Stock Performance

Shares of NYSE:UNH traded up $3.7480 on Friday, reaching $307.0980. The company's stock had a trading volume of 14,867,565 shares, compared to its average volume of 23,516,492. The stock's 50-day moving average is $288.39 and its two-hundred day moving average is $388.53. UnitedHealth Group has a 52-week low of $234.60 and a 52-week high of $630.73. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.85 and a quick ratio of 0.85. The stock has a market capitalization of $278.13 billion, a P/E ratio of 13.31, a PEG ratio of 1.98 and a beta of 0.43.

Institutional Trading of UnitedHealth Group

Several large investors have recently modified their holdings of the business. TT Capital Management LLC acquired a new stake in shares of UnitedHealth Group in the second quarter valued at approximately $489,000. Stance Capital LLC acquired a new stake in UnitedHealth Group during the second quarter worth approximately $1,297,000. Pathway Financial Advisers LLC boosted its position in UnitedHealth Group by 6.8% during the second quarter. Pathway Financial Advisers LLC now owns 7,221 shares of the healthcare conglomerate's stock worth $2,253,000 after acquiring an additional 457 shares during the last quarter. North Dallas Bank & Trust Co. acquired a new stake in UnitedHealth Group during the second quarter worth approximately $1,329,000. Finally, Forefront Wealth Partners LLC boosted its position in UnitedHealth Group by 6.3% during the second quarter. Forefront Wealth Partners LLC now owns 1,114 shares of the healthcare conglomerate's stock worth $348,000 after acquiring an additional 66 shares during the last quarter. 87.86% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at UnitedHealth Group

In other news, CEO Patrick Hugh Conway sold 589 shares of the stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $305.00, for a total value of $179,645.00. Following the sale, the chief executive officer directly owned 10,398 shares in the company, valued at $3,171,390. This represents a 5.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.28% of the stock is owned by corporate insiders.

UnitedHealth Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Monday, September 15th will be given a $2.21 dividend. The ex-dividend date is Monday, September 15th. This represents a $8.84 annualized dividend and a dividend yield of 2.9%. UnitedHealth Group's dividend payout ratio is currently 38.30%.

UnitedHealth Group Company Profile

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage.