Share price movements
On April 16, UnitedHealth Group (UNH) closed at $220.96, which was 4.01% lower than its previous closing price, 0.09% higher than its 52-week low of $220.77, and 23.26% below its 52-week high of $287.94. The company’s market capitalization is $210.84 billion. UnitedHealth Group’s PE ratio, forward PE ratio, price-to-sales ratio, price-to-book ratio, and price-to-cash ratio are 18.12x, 13.30x, 0.93x, 4.12x, and 19.40x, respectively. The company reported its first-quarter earnings on April 16.
In the first quarter, UnitedHealth Group beat its consensus revenue estimate by $590.15 million and its non-GAAP EPS estimate by $0.13. The company also confirmed its continued progress towards its target of a net promoter score of 70 by fiscal 2025. Despite the performance, the company’s share price fell after CEO David Wichmann criticized Senator Bernie Sanders’ “Medicare for All” proposal.
In the first-quarter earnings conference call, Wichmann claimed that the proposal will be disruptive to the overall healthcare system and will detrimentally impact stakeholders’ relationships. He said that the proposals will lead to an excessive increase in the burden on the US economy by reducing available jobs.
In UnitedHealth Group’s first-quarter earnings conference call, Wichmann proposed collaborative efforts of public and private players, a strong interoperable digital infrastructure, and streamlined regulatory frameworks to achieve universal access.
Analysts’ recommendations and target price
Wall Street analysts expect an upside potential of 34.49% for UnitedHealth Group based on the company’s closing price on April 16. Analysts increased the company’s 12-month consensus target price from $306.39 in February to $307.17 in March. However, analysts reduced the 12-month consensus target price to $297.18 in April. Analysts’ consensus recommendation for the stock is a “buy.”
Among the 24 analysts covering UnitedHealth Group, 11 recommended a “strong buy,” 13 recommended a “buy,” and one recommended a “hold.”