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Timothy Flynn, a director at UnitedHealth Group Inc. (NYSE:UNH), purchased 1,533 shares of the company’s common stock on May 14, totaling approximately $491,786. The shares were acquired at a price of $320.80 each. This insider purchase comes as UNH stock has declined significantly, down about 46% over the past year. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value model. Following this transaction, Flynn holds a total of 6,033 shares indirectly, by trust. The healthcare giant maintains strong fundamentals with a P/E ratio of 11.4x and has consistently raised its dividend for 15 consecutive years, currently yielding 3.1%. Want deeper insights? InvestingPro offers 15+ additional premium tips and a comprehensive Pro Research Report for UNH, helping investors make more informed decisions.
In other recent news, UnitedHealth Group’s earnings and revenue figures have been a focal point for analysts. Raymond (NSE:RYMD) James has adjusted its future earnings per share (EPS) estimates downward, citing concerns over the quality and recurrence of earnings, particularly after excluding $4 billion in one-time gains from 2024. The revised estimates project an adjusted EPS of $20 for 2025 and $23 for 2026. Meanwhile, RBC Capital Markets reduced its price target for UnitedHealth to $355, while maintaining an Outperform rating, due to revised EPS estimates and valuation concerns amid increased Department of Justice (DOJ) activity.
Wolfe Research, however, maintained its $501 price target and Outperform rating, despite the ongoing DOJ investigation into potential Medicare fraud. JPMorgan also revised its price target to $405, reflecting recent leadership changes and the suspension of 2025 guidance. The analyst at JPMorgan projects a 2025 EPS of $22.26 and anticipates a 10% growth in 2026. The DOJ’s investigation, focusing on Medicare Advantage billing practices, has been ongoing since last summer, with specific allegations yet to be disclosed. Despite these challenges, analysts remain cautiously optimistic about UnitedHealth’s long-term prospects.
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