Wolfe Research Maintains Buy Rating for UnitedHealth with $330 Price Target

Wolfe Research analyst Justin Lake maintains a Buy rating on UnitedHealth with a price target of $330.00, citing the company's strong healthcare segment and increasing demand for its services. The analyst consensus on UnitedHealth is a Moderate Buy with an average price target of $360.04, a 20.91% upside from current levels. Corporate insider sentiment is positive, with an increase in insider buying over the past quarter.

UnitedHealth Group (NYSE: UNH) has been the subject of a mix of analyst ratings and insider buying activity, signaling a potential recovery for the healthcare services giant. Wolfe Research analyst Justin Lake maintains a Buy rating on UnitedHealth with a price target of $330.00, citing the company's strong healthcare segment and increasing demand for its services [1]. The analyst consensus on UnitedHealth is a Moderate Buy with an average price target of $360.04, a 20.91% upside from current levels [2].

Wolfe Research recently lowered its price target for UnitedHealth to $330 from $363 while maintaining an Outperform rating, citing multiple pressures on the company’s 2025 earnings outlook. The research firm revised its 2025 earnings per share estimate for UnitedHealth to $18.00, taking a more conservative view due to industry pressures in Medicaid and health insurance exchanges, along with potential investments in selling, general and administrative expenses under CEO Steve Hemsley [1].

Despite the downward pressure on earnings estimates, the company continues to trade at a P/E ratio of 12.6 and maintains solid revenue growth of 8.06%, indicating strong fundamentals. UnitedHealth is expected to reissue its 2025 earnings guidance and provide commentary on its 2026 earnings trajectory during its second-quarter earnings report scheduled for July 29 [1].

Corporate insider sentiment is positive, with an increase in insider buying over the past quarter. For example, Georgia Congressional Representative Marjorie Taylor Greene bought between $15,000 and $50,000 shares of UNH stock on May 14 and between $1,001 and $15,000 on May 16 [3]. This insider buying activity, coupled with the recent leadership changes, suggests that UnitedHealth Group may be poised for a turnaround.

While the recent analyst ratings and insider buying indicate a positive outlook, investors should remain cautious. The company has faced significant challenges, including a declining stock price, a cybersecurity breach, and a government investigation. Additionally, the Zacks Rank for UnitedHealth has been downgraded to a Strong Sell, indicating a potential near-term price decline [2].

In conclusion, UnitedHealth Group faces both challenges and opportunities. The recent analyst ratings and insider buying activity suggest a potential recovery, but investors should carefully consider the company's earnings pressures and regulatory issues before making investment decisions.

References:
[1] https://www.investing.com/news/analyst-ratings/wolfe-research-cuts-unitedhealth-stock-price-target-to-330-on-2025-earnings-pressure-93CH-4129642
[2] https://finance.yahoo.com/news/unitedhealth-unh-buy-wall-street-133003982.html
[3] https://www.marketbeat.com/originals/do-they-know-something-insiders-and-congress-buy-unitedhealth/