New York, Feb 2, 2026, 11:26 EST — Regular session
- UnitedHealth shares climbed roughly 1% by midday, defying a weaker trend in the managed-care sector.
- Truist and JPMorgan lowered their price targets but stayed bullish on the stock.
- Medicare Advantage payment rates and 2026 cost trends continue to be the main focus for investors.
UnitedHealth Group shares rose $2.82, roughly 1%, closing at $289.75 on Monday. The stock bounced back after slipping early in after-hours trading, fluctuating between $282.36 and $290.37 throughout the session.
This move is significant since UnitedHealth now serves as a barometer for U.S. managed-care risk following last week’s steep repricing. Traders are closely watching to see if a trickle of target cuts will snowball into wider downgrades, or if the selling pressure has already exhausted itself.
On Monday, fresh analyst updates highlighted a clear divide. Truist dropped its price target to $370 from $410 but maintained a “buy” rating. At the same time, JPMorgan lowered its target to $389 from $425 and stuck with an “overweight” rating, according to reports. For context, a price target reflects where an analyst expects a stock to trade over the coming year, while “overweight” implies the shares are likely to outperform the market or their sector. (MarketScreener)
UnitedHealth bucked the trend as most of its big rivals dipped. Humana dropped roughly 2%, Elevance slid around 1%, and Cigna fell close to 1%, with CVS holding steady.
The bigger headache remains Washington. On Jan. 26, the U.S. government suggested raising 2027 Medicare Advantage payments by just 0.09% on average — well under Wall Street’s forecasts — triggering a sharp sell-off in the sector. Medicare Advantage is essentially Medicare’s private-plan option. (Reuters)
Then guidance landed. On Jan. 27, UnitedHealth projected 2026 adjusted profit just above estimates, yet shares dipped as investors mulled over reimbursement pressures and rising medical costs tied to government-backed plans. (Reuters)
UnitedHealth’s immediate focus isn’t just this quarter but the trajectory of its costs. The key driver for the sector remains medical-cost trends—how quickly claims are climbing. If those expenses prove “sticky,” they could overshadow any positive chatter around pricing or scale.
Policy risk cuts both ways here. Medicare Advantage rates are proposed but can shift before final approval. Insurers and industry groups are pushing back, warning that benefits could shrink if payments don’t keep pace with rising care costs. (Financial Times)
The downside is clear: if reimbursement remains tight while utilization stays elevated, margins will come under pressure and the earnings reset will persist. That’s when “buy” ratings begin to feel conditional, and the next wave of target cuts could hit harder.
Investors now turn to April, the month when final Medicare Advantage rates will be announced. Changes in those rates—and insurers’ reactions on pricing and membership—could drive the next move for the sector. (Reuters)
