UnitedHealth Group Inc. (NYSE: UNH) shares are trading lower Thursday, after Baird downgraded the stock to Underperform and slashed its price target from $312 to $198.
President Donald Trump has announced a new private health tracking system, aimed at streamlining patient access to health records and wellness monitoring.
Shares of medical device company Penumbra (NYSE:PEN)
jumped 11.8% in the afternoon session after the company reported impressive second-quarter financial results that surpassed analyst expectations and raised its full-year revenue forecast. The company posted revenue of $339.5 million, a 13.4% increase year-over-year, which beat the consensus estimate of $327.77 million. Earnings per share also came in strong at $0.86, topping expectations of $0.83. This growth was primarily fueled by its U.S. Thrombectomy business, which involves procedures to remove blood clots and saw a 22.6% revenue jump. The embolization segment, which deals with blocking blood flow for treatment, also performed well. Bolstered by this strong performance, Penumbra lifted its full-year 2025 revenue guidance, signaling confidence in its continued growth trajectory.
While BofA sees long-term upside for UnitedHealth, it has applied a lower multiple due to near-term uncertainty around Medicare Advantage and OptumHealth margins.
Healthcare company, UnitedHealth Group Inc. (NYSE: UNH), says that it will drop 600,000 Medicare Advantage members and launch a sweeping operational overhaul after being blindsided by $6.5 billion in unanticipated medical costs.
UnitedHealth’s short-term margin challenges are steep, but the company’s strategic leadership changes and long-term earnings forecast suggest a possible rebound by 2026.
A number of stocks fell in the afternoon session after industry bellwether UnitedHealth Group (UNH) slashed its 2025 profit forecast after reporting a significant surge in medical costs, sending shockwaves across the health insurance sector.
A number of stocks fell in the afternoon session after industry bellwether UnitedHealth Group (UNH) slashed its 2025 profit forecast after reporting a significant surge in medical costs, sending shockwaves across the health insurance sector.
A number of stocks fell in the afternoon session after industry bellwether UnitedHealth Group (UNH) slashed its 2025 profit forecast after reporting a significant surge in medical costs, sending shockwaves across the health insurance sector. The core of the issue stems from an “unprecedented medical cost trend environment,” particularly within the Medicare Advantage market, which are privately run versions of the federal health insurance program. UnitedHealth, the largest provider in this space, now expects these costs to rise by 7.5% in 2025, a significant jump from its earlier 5% projection, with the potential to accelerate to almost 10% in 2026. In response, the insurer announced it will drop plans covering over 600,000 people. The company's lowered earnings forecast has raised investor concerns that these surging costs and utilization rates are an industry-wide problem, impacting the profitability of other carriers as well.
Shares of health insurance company UnitedHealth (NYSE:UNH)
fell 4.6% in the morning session after the company reported weaker-than-expected second-quarter earnings and issued a full-year profit outlook that fell significantly short of analyst expectations. The company's adjusted earnings per share for the quarter came in at $4.08, missing Wall Street's consensus of around $4.48. More critically for investors, the company reinstated its full-year guidance after suspending it in May. UnitedHealth projected at least $16 in adjusted earnings per share for 2025, a significant reduction from previous forecasts and far below the more than $20 analysts had anticipated. The primary driver for the poor performance was a surge in medical expenses. This was reflected in the company's medical care ratio, a key metric indicating the portion of premiums spent on care, which rose to 89.4%. UnitedHealth attributed the higher costs to medical trends outpacing pricing and the effects of reductions in Medicare funding.
Shares of genetic testing company Myriad Genetics (NASDAQ:MYGN)
fell 3.8% in the afternoon session after weakness in the healthcare sector became pronounced following a poor sales report from a key competitor. The negative sentiment was partly fueled by health insurance giant UnitedHealth Group, which reported a miss on its second-quarter earnings and issued a profit warning, casting a pall over the entire sector. More directly, NeoGenomics, a company also operating in the cancer diagnostics space, reported that it had missed its second-quarter sales targets. This news, which sent NeoGenomics' stock down significantly, suggested a potentially more challenging market environment for companies involved in oncology diagnostics, a core business for Myriad Genetics.
Shares of medical supply and logistics company Owens & Minor (NYSE:OMI) fell 3.5% in the afternoon session after the broader healthcare sector traded lower as industry heavyweight UnitedHealth Group reported disappointing second-quarter results and a weakened outlook for 2025. The negative sentiment was triggered when UnitedHealth, a giant in the health insurance space, posted second-quarter earnings of $4.08 per share, which fell short of analysts' expectations. The company also issued a cautious profit forecast, citing rising medical expenses. This news created a ripple effect across the industry, pulling down shares of other managed care and healthcare companies. Investors appeared to react to the potential for similar cost pressures and challenges to impact other firms in the sector, leading to a broad-based sell-off.
Join us in exploring the top gainers and losers within the S&P500 index one hour before the close of the markets on Tuesday as we examine the latest happenings in today's session.
