New York, Feb 2, 2026, 19:54 EST — After-hours
- Shares of UnitedHealth slipped 0.4% in after-hours trading, closing at $285.59.
- Truist Securities and JPMorgan Chase & Co. cut their price targets but maintained bullish ratings
- Medicare Advantage payment policy is shaping up as the next major swing factor, with U.S. regulators set to finalize 2027 rates by April 6
UnitedHealth shares slipped 0.4% in after-hours trading Monday, closing at $285.59, weighed down by new price-target downgrades that sparked investor caution following a volatile period for the insurer.
The shifts mattered less for their immediate impact on one-day trading and more for the message they sent: Wall Street remains uncertain about the company’s 2026 reset, struggling to pin down the numbers. The stock has been jittery, reacting to every policy hint as if it could drop at any moment.
Price targets reflect brokers’ forecasts for where a stock might land over about the next year. When multiple cuts come through together, it often signals analysts expect earnings to take a hit — or they’re just dialing back on what they think the shares are worth.
Truist’s David MacDonald cut his price target to $370 from $410 but maintained a Buy rating. He told clients the firm is “adjusting its estimates after the company’s Q4 results and 2026 guidance.” (TipRanks)
JPMorgan lowered its price target to $389 from $425 but kept an Overweight rating, MT Newswires reported. (MarketScreener)
Despite the cuts, both price targets remain far above the current stock price. That gap highlights the split among investors: some view it as an undervalued blue chip, while others focus on the complexities linked to government payments and fluctuating medical costs.
UnitedHealth reported January 27 that its 2025 revenue climbed 12% to $447.6 billion. For 2026, it projects revenue exceeding $439.0 billion and adjusted earnings above $17.75 per share. CEO Stephen Hemsley described the company as having “finished 2025 as a much stronger company.” (UnitedHealth Group)
Most of the near-term friction centers on Medicare Advantage, the private Medicare option managed by insurers under government contracts. The Centers for Medicare & Medicaid Services released its 2027 Advance Notice, forecasting a net average payment hike of just 0.09%. Public comments are due by Feb. 25, with the final rates set to be announced no later than April 6. (Centers for Medicare & Medicaid Services)
The Medicare Advantage update shook other managed-care stocks last week, notably Humana and CVS Health, as investors scrambled to gauge how the revised rate calculations might tighten margins. (Reuters)
One risk still looms over the tape: if final Medicare Advantage rates remain constrained and medical-cost “utilization” — the frequency with which members seek care — stays high, insurers could face claim payouts that exceed their pricing. That scenario usually surfaces first through guidance cuts and increased reserve requirements. (MarketWatch)
Tuesday’s session will focus on whether the stock can find footing amid a fresh wave of research notes and any shifts in managed-care sentiment. The next major event to watch is the April 6 Medicare Advantage rate announcement deadline from CMS. (Centers for Medicare & Medicaid Services)
