UnitedHealth Shares Present Opportunity Amid Strategic Shift

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After a challenging period that saw its stock price decline by more than 40% since the start of the year, UnitedHealth Group is showing signs of stabilization. As the company’s shares trade ex-dividend today, a combination of strategic portfolio moves and solid operational performance is drawing renewed attention from market analysts.

The healthcare giant’s underlying business strength remains intact, as demonstrated by its third-quarter 2025 results. Revenue climbed 12.2% to $113.16 billion. Adjusted earnings per share came in at $2.92, surpassing analyst expectations.

A key metric, the Medical Care Ratio, provided a positive surprise. This measure of medical costs relative to premium income was 89.9%, an improvement over the feared 90.7%. This indicates the company is managing rising healthcare expenses more effectively than anticipated. In response to the robust quarter, management raised its full-year earnings guidance to at least $16.25 per share.

A Strategic Billion-Dollar Exit

A significant development boosting investor sentiment is UnitedHealth’s decisive portfolio simplification. The company has reached an agreement to sell its remaining South American operation, Banmedica, to private equity firm Patria Investments. The transaction is valued at approximately $1 billion.

This move completes the group’s exit from the Latin American market. Observers interpret this as a clear strategic pivot, allowing the firm to sharpen its focus on its core, profitable U.S. operations. The sale not only strengthens the balance sheet but also frees up capital that could be directed toward shareholder returns via dividends and potential share buybacks. Regarding the dividend, shareholders of record as of December 8 are entitled to the quarterly payout of $2.21 per share.

Wall Street Analysts Revise Targets Upward

The recent developments have prompted several prominent research firms to reassess their outlook on the stock, with many lifting their price targets:

• Morgan Stanley increased its target to $395 from $325.
• RBC Capital now sees the stock reaching $408.
• Bernstein raised its target to $440, citing improved pricing discipline within the Medicare Advantage segment.
• Wolfe Research reaffirmed its "Outperform" rating and lifted its target to $375.

The consensus price target among analysts now stands around $385, suggesting substantial potential upside from current trading levels.

The successful divestiture from South America and the upgraded earnings forecast signal a management team intently focused on profitability in its home market. With a dividend yield near 2.7% and a valuation well below its historical peaks, UnitedHealth shares may be worth a fresh look for investors with a long-term horizon.