We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UnitedHealth (UNH), Amedisys Clear Merger Hurdle With Asset Sale
Read MoreHide Full Article
UnitedHealth Group Incorporated (UNH - Free Report) and Amedisys, Inc.’s (AMED - Free Report) $3.3 billion merger is set to close in the second half of 2024, with Amedisys becoming a wholly-owned subsidiary of UnitedHealth. Both companies are divesting certain care centers to VitalCaring Group’s affiliate VCG Luna, to satisfy federal antitrust regulators.
This move, announced recently by Amedisys in a filing with the U.S. Securities & Exchange Commission, is expected to streamline the merger process and maintain compliance with regulatory requirements.
By selling these assets, the companies aim to avoid potential monopoly issues and ensure a smoother merger process. As stated in the filing, the finalization of the divestment agreement hinges on the successful completion of the UnitedHealth deal.
Further financial details of the move are yet to be disclosed. UNH business Optum submitted a full-cash proposal to combine with Amedisys in June 2023. Optum’s expertise in value-based care and Amedisys’ care and quality innovation within the home were expected to drive better health outcomes at lower costs and improve patient care continuity.
Optum has made some significant acquisitions over the years to strengthen its market position and boost its capabilities. In February 2023, it closed a massive $5.4 billion acquisition of LHC Group.
The Optum business is crucial for the company’s diversification strategy. The technology-enabled health services business contributed more than 24% of UNH’s revenues in 2023. The unit is on track to achieve 5 million patients served in value-based care by 2024-end.
Price Performance
UnitedHealth shares have gained 6.6% in the past year compared with the industry’s 5.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Elevance Health’s current-year earnings implies a 12.4% increase from the year-ago reported figure. ELV beat earnings estimates in each of the last four quarters, with an average surprise of 2.8%. The consensus mark for its current-year revenues is pegged at $171.8 billion, which indicates a 0.9% year-over-year increase.
The Zacks Consensus Estimate for Aura Biosciences’ current-year earnings suggests a 6.7% year-over-year improvement. It has witnessed two upward estimate revisions over the past 60 days against no movement in the opposite direction. AURA beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 1.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
UnitedHealth (UNH), Amedisys Clear Merger Hurdle With Asset Sale
UnitedHealth Group Incorporated (UNH - Free Report) and Amedisys, Inc.’s (AMED - Free Report) $3.3 billion merger is set to close in the second half of 2024, with Amedisys becoming a wholly-owned subsidiary of UnitedHealth. Both companies are divesting certain care centers to VitalCaring Group’s affiliate VCG Luna, to satisfy federal antitrust regulators.
This move, announced recently by Amedisys in a filing with the U.S. Securities & Exchange Commission, is expected to streamline the merger process and maintain compliance with regulatory requirements.
By selling these assets, the companies aim to avoid potential monopoly issues and ensure a smoother merger process. As stated in the filing, the finalization of the divestment agreement hinges on the successful completion of the UnitedHealth deal.
Further financial details of the move are yet to be disclosed. UNH business Optum submitted a full-cash proposal to combine with Amedisys in June 2023. Optum’s expertise in value-based care and Amedisys’ care and quality innovation within the home were expected to drive better health outcomes at lower costs and improve patient care continuity.
Optum has made some significant acquisitions over the years to strengthen its market position and boost its capabilities. In February 2023, it closed a massive $5.4 billion acquisition of LHC Group.
The Optum business is crucial for the company’s diversification strategy. The technology-enabled health services business contributed more than 24% of UNH’s revenues in 2023. The unit is on track to achieve 5 million patients served in value-based care by 2024-end.
Price Performance
UnitedHealth shares have gained 6.6% in the past year compared with the industry’s 5.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold).
Investors interested in the broader Medical space may look at some better-ranked players like Elevance Health, Inc. (ELV - Free Report) and Aura Biosciences, Inc. (AURA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Elevance Health’s current-year earnings implies a 12.4% increase from the year-ago reported figure. ELV beat earnings estimates in each of the last four quarters, with an average surprise of 2.8%. The consensus mark for its current-year revenues is pegged at $171.8 billion, which indicates a 0.9% year-over-year increase.
The Zacks Consensus Estimate for Aura Biosciences’ current-year earnings suggests a 6.7% year-over-year improvement. It has witnessed two upward estimate revisions over the past 60 days against no movement in the opposite direction. AURA beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 1.6%.