UnitedHealth Group agreed to acquire healthcare technology company Change Healthcare in a deal that values the latter at more than $13 billion.
As part of the deal, UnitedHealth will pay $25.75 a share in cash, which implies a 41% premium over Change Healthcare stock’s closing price Tuesday of $18.24. The valuation includes more than $5 billion of Change Healthcare debt. The deal is expected to close in the second half of 2021.
The acquisition will see Change Healthcare combining with UnitedHealth’s OptumInsight unit to offer data analytics, software and other services to the health-care industry.
According to the two companies, the deal will help simplify services around medical care and lower costs.
Private-equity funds affiliated with Blackstone Group that own about 20% of Change Healthcare’s common stock have agreed to vote in favor of the deal. The deal is expected to increase UnitedHealth’s adjusted per-share earnings by 50 cents in 2022, the companies said.
The 50-day moving average for UNH moved below the 200-day moving average on January 31, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Momentum Indicator moved below the 0 level on February 07, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on UNH as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for UNH turned negative on February 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
UNH moved below its 50-day moving average on February 14, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UNH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
UNH broke above its upper Bollinger Band on January 13, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for UNH crossed bullishly above the 50-day moving average on February 05, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UNH advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 231 cases where UNH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: UNH's P/B Ratio (5.086) is slightly higher than the industry average of (3.063). P/E Ratio (20.524) is within average values for comparable stocks, (17.509). UNH's Projected Growth (PEG Ratio) (1.382) is slightly higher than the industry average of (1.089). Dividend Yield (0.015) settles around the average of (0.020) among similar stocks. UNH's P/S Ratio (1.236) is slightly higher than the industry average of (0.684).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. UNH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of hospital and medical service plans
Industry ManagedHealthCare