UnitedHealth(UNH, $347.00) to buy Change Healthcare in $13 billion deal
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.
UNH sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for UNH moved above the 200-day moving average on July 26, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
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Notable companies
The most notable companies in this group are Unitedhealth Group (NYSE:UNH), Elevance Health (NYSE:ELV), Cigna Group (The) (NYSE:CI), CVS HEALTH Corp (NYSE:CVS), Humana (NYSE:HUM), Centene Corp (NYSE:CNC).
Industry description
Managed healthcare industry focuses on providing health/medical and disability insurance plans, generally intended to reduce the cost of for-profit health care. The insurance products might be provided through employer-paid (fully or partly) insurance and benefit programs, or through Medicare/Medicaid. Some of the largest providers of managed health care include Aetna, Humana Inc., and Cigna, and UnitedHealthcare.
Market Cap
The average market capitalization across the Managed Health Care Industry is 68.32B. The market cap for tickers in the group ranges from 3.42M to 451.47B. UNH holds the highest valuation in this group at 451.47B. The lowest valued company is HRAA at 3.42M.
High and low price notable news
The average weekly price growth across all stocks in the Managed Health Care Industry was 4%. For the same Industry, the average monthly price growth was 6%, and the average quarterly price growth was 10%. NEUE experienced the highest price growth at 16%, while ALHC experienced the biggest fall at -6%.
Volume
The average weekly volume growth across all stocks in the Managed Health Care Industry was -11%. For the same stocks of the Industry, the average monthly volume growth was 18% and the average quarterly volume growth was -23%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 41
P/E Growth Rating: 69
Price Growth Rating: 47
SMR Rating: 84
Profit Risk Rating: 65
Seasonality Score: -41 (-100 ... +100)