UnitedHealth Group’s (UNH) stock continues to face pressure Monday, sliding 5% in trading as Wall Street revised down its price targets for the stock.
The moves come days after UnitedHealth Group stock faced its worst trading day since 1998.
On Thursday, after reporting first quarter earnings, UnitedHealth dropped more than 24% in trading as a combination of factors, including higher-than-expected utilization of services from customers, forced the company to revise down its 2025 guidance.
The company now expects its 2025 adjusted earnings per share to fall between $26 and $26.50, down from $29.50-$30.
Read more about UnitedHealth’s stock moves and today’s market action.
That has, in turn, caused a negative reaction on Wall Street, with some analysts downgrading the company’s stock Monday.
Raymond James cut the most sharply, with a new price target of $540 per share, down from $635. Oppenheimer, meanwhile, cut from $640 to $600, and KeyBanc cut from $650 to $575.
Mizuho’s healthcare sector expert, Jared Holz, wrote in a note to clients that while UHG’s stock could bounce back over the near-term, it’s “getting difficult to find too much solace in this stock. Has blown up on several occasions over the past couple years alone and is hardly the refuge that it should be given size and (diverse) business model.”
He added that it’s possible the company sees some activist investor interest and calls to change management in the near future, considering the volatility in the past few years.
Despite the downward revisions, the company remains a Buy for many analysts — with 27 out of 29 recommending a buy on the stock, according to Bloomberg.
Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
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