UnitedHealth drives managed care peers higher after solid Q3 beat

Oct. 14, 2021 9:03 AM ETUnitedHealth Group Incorporated (UNH), ELV, HUM, CNCBy: Dulan Lokuwithana, SA News Editor3 Comments

UnitedHealthcare Indiana Office. UnitedHealth Group Provides Employer, Individual and Family Health Insurance.

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  • Managed care players are trading higher in the pre-market after UnitedHealth (NYSE:UNH), with its Q3 2021 financials, exceeded analyst expectations, and raised 2021 guidance.
  • In early trading, Anthem (NYSE:ANTM), Humana (NYSE:HUM), and Centene (NYSE:CNC) have added ~1.3%, ~1.5%, and ~0.9%, respectively, while UnitedHealth leads the pack with a ~2.6% rise.
  • Commenting on the results, Truist analyst David MacDonald argues that the quarterly beat was driven by the medical-loss ratio in combination with continued strength in UnitedHealthcare and Optum segments and strong membership growth.
  • MacDonald has a Buy rating on the stock, and the price target of $500 per share implies a premium of ~23.9% to the last close.
  • Exceeding the Street forecasts of ~83.6%, the medical care ratio — a measure indicating the medical expenses as a percentage of premium revenues — reached 83.0% for the company from ~82.8% in the previous quarter.
  • Interested in other stocks making sharp moves in the market today? Take a look at Seeking Alpha's Stocks on the Move.
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