Zacks Research Issues Optimistic Estimate for UNH Earnings

Key Points

• Zacks Research raised its Q1 2027 EPS estimate for UnitedHealth Group to $6.87 from $6.77, while the consensus full-year earnings estimate stands at $18.29 per share.
• Recent results were stronger than expected, with UnitedHealth reporting $7.23 EPS and $111.65 billion in revenue last quarter, both ahead of analyst forecasts. Management also maintained FY 2026 guidance at 18.250 EPS.
• Sentiment has been pressured by Berkshire Hathaway’s exit from the stock, which Reuters said helped drive a drop in shares and added to investor concern despite broader analyst support and a consensus “Moderate Buy” rating.

UnitedHealth Group Incorporated (NYSE:UNH - Free Report) - Zacks Research increased their Q1 2027 earnings estimates for shares of UnitedHealth Group in a research report issued on Monday, May 18th. Zacks Research analyst Team now expects that the healthcare conglomerate will earn $6.87 per share for the quarter, up from their prior forecast of $6.77. The consensus estimate for UnitedHealth Group's current full-year earnings is $18.29 per share.

UNH has been the subject of a number of other research reports. HSBC upgraded shares of UnitedHealth Group from a "reduce" rating to a "hold" rating and set a $300.00 price objective for the company in a report on Tuesday, April 7th. Jefferies Financial Group raised their price target on shares of UnitedHealth Group from $340.00 to $373.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Barclays increased their price objective on UnitedHealth Group from $327.00 to $373.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Piper Sandler reaffirmed an "overweight" rating on shares of UnitedHealth Group in a research note on Tuesday, January 27th. Finally, UBS Group decreased their target price on shares of UnitedHealth Group from $430.00 to $410.00 and set a "buy" rating for the company in a research report on Wednesday, January 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $381.83.

UnitedHealth Group Price Performance

Shares of UNH opened at $390.44 on Tuesday. The stock has a market cap of $354.57 billion, a PE ratio of 29.49, a PEG ratio of 1.70 and a beta of 0.64. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.69. The business has a 50-day simple moving average of $318.85 and a two-hundred day simple moving average of $318.35. UnitedHealth Group has a 12-month low of $234.60 and a 12-month high of $404.15.

UnitedHealth Group (NYSE:UNH - Get Free Report) last posted its earnings results on Tuesday, April 21st. The healthcare conglomerate reported $7.23 earnings per share for the quarter, topping analysts' consensus estimates of $6.76 by $0.47. UnitedHealth Group had a net margin of 2.68% and a return on equity of 14.65%. The firm had revenue of $111.65 billion for the quarter, compared to analysts' expectations of $109.84 billion. During the same quarter in the previous year, the firm posted $7.20 earnings per share. The company's revenue was up 2.0% on a year-over-year basis. UnitedHealth Group has set its FY 2026 guidance at 18.250- EPS.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sarver Vrooman Wealth Advisors bought a new position in shares of UnitedHealth Group in the 4th quarter worth $25,000. Beacon Financial Strategies CORP acquired a new position in UnitedHealth Group during the fourth quarter worth $26,000. Anfield Capital Management LLC increased its position in shares of UnitedHealth Group by 220.0% during the fourth quarter. Anfield Capital Management LLC now owns 80 shares of the healthcare conglomerate's stock worth $26,000 after acquiring an additional 55 shares in the last quarter. Joseph Group Capital Management acquired a new stake in shares of UnitedHealth Group in the 4th quarter worth about $27,000. Finally, Nalls Sherbakoff Group LLC acquired a new position in UnitedHealth Group during the 4th quarter valued at about $27,000. Institutional investors own 87.86% of the company's stock.

Insider Buying and Selling

In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 800 shares of UnitedHealth Group stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $355.00, for a total value of $284,000.00. Following the completion of the sale, the chief executive officer directly owned 17,805 shares of the company's stock, valued at approximately $6,320,775. The trade was a 4.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.28% of the company's stock.

UnitedHealth Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Monday, March 9th were given a dividend of $2.21 per share. This represents a $8.84 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Monday, March 9th. UnitedHealth Group's payout ratio is presently 66.77%.

Key UnitedHealth Group News

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

• Positive Sentiment: UnitedHealth’s recent quarterly results beat expectations on both earnings and revenue, and management raised guidance, reinforcing the view that the business is still improving operationally.
• Positive Sentiment: The healthcare sector was stronger on Monday afternoon, offering some support to UNH relative to the broader market. Sector Update: Healthcare Stocks Advance Monday Afternoon
• Neutral Sentiment: A new healthcare policy proposal would expand HSAs and increase price transparency, which could affect insurers like UNH over time, but it is not an immediate earnings driver. New Bill: Representative Eric Burlison introduces H.R. 8324: Great American Healthcare Plan
• Negative Sentiment: Berkshire Hathaway disclosed that it sold its entire UnitedHealth position, and Reuters reported the stock fell after the exit became public, weighing on investor sentiment. UnitedHealth falls after Berkshire sells stake in health insurer
• Negative Sentiment: Commentary across Reuters, Barron’s, Investopedia, and other outlets focused on Berkshire’s exit, increasing concern that a respected long-term investor no longer sees as much upside in UNH.

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.

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