New York, Feb 6, 2026, 05:34 EST — Premarket
- UnitedHealth slipped 2.7% in premarket trading following Mizuho’s downgrade of its price target to $350
- Insurers remain under scrutiny amid Medicare Advantage payment forecasts and new PBM regulations
- Investors are focused on the CMS comment deadline set for Feb. 25 and the 2027 rate decision, expected by April 6
Shares of UnitedHealth Group Incorporated (UNH) dropped 2.7% to $268.55 in premarket trading Friday, following Thursday’s close near $276.04.
The shift highlights how fast Wall Street is revising valuations for managed-care insurers as Washington reexamines Medicare Advantage—the privately operated Medicare option for seniors and people with disabilities. CMS has suggested a net average payment increase of just 0.09% for 2027, well below what investors anticipated. (CMS)
UnitedHealth is also facing regulatory scrutiny linked to pharmacy benefit managers, the intermediaries that determine drug coverage and pricing. This week, the FTC reached a settlement with Cigna’s Express Scripts over insulin pricing. However, lawsuits against UnitedHealth’s Optum unit and CVS Caremark are still in progress, Reuters reported. (Reuters)
Mizuho cut its price target on UnitedHealth to $350 from $430, maintaining an “outperform” rating. The move follows the company’s Q4 report, which suggested a delayed earnings rebound. (TipRanks)
Before the bell, other major managed-care stocks showed mixed moves. Humana edged up roughly 0.8%, CVS Health climbed about 1.4%, but Elevance Health dropped nearly 2.4% in early trading.
UnitedHealthcare and the Health Action Council dropped a new report this week revealing a rise in claims from younger workers and a jump in “major health events,” which they define as yearly claims topping $100,000. Craig Kurtzweil, UnitedHealthcare’s chief data and analytics officer for Employer & Individual, emphasized that these patterns underscore why employers need sharper, more actionable insights to spot emerging risks and care gaps. Patty Starr, president and CEO of the Health Action Council, added that employers are “seeing health issues show up earlier and feeling the cost impact sooner.” (UnitedHealth Group)
UnitedHealth projected last month that its 2026 revenue would top $439 billion, with adjusted earnings surpassing $17.75 per share as it updated its outlook for the coming year. (Business Wire)
The near-term outlook hinges on government rulings and ongoing litigation, beyond just quarterly results. UnitedHealth confirmed it is cooperating with criminal and civil inquiries linked to a Department of Justice probe into parts of its Medicare operations. (UnitedHealth Group)
The downside risk for bulls is clear: tighter Medicare Advantage rates combined with rising medical usage are squeezing margins just as regulators ramp up pressure on reimbursement and PBM practices. This combination could push estimates and price targets down further, despite insurers’ efforts to reprice plans.
Investors are now focused on the CMS 2027 Medicare Advantage proposals, with comments expected by Feb. 25. The final 2027 rate announcement is set for no later than April 6 — key dates that could shift the outlook for the entire sector. (AAMC)
