What Happened?
Shares of healthcare tech company Privia Health Group (NASDAQ:PRVA) fell 6.5% in the morning session after concerns swept the healthcare provider sector as industry giant UnitedHealth Group warned of lower revenue.
UnitedHealth announced that its revenue was set to fall in 2026 as it pushed forward with a major restructuring. The company aimed to restore profitability following a period of elevated medical costs. This cautious outlook worried investors, especially as U.S. regulators proposed flat Medicare Advantage payment rates, which increased pressure across the sector. UnitedHealth's stock fell sharply on the guidance, creating a ripple effect that impacted peers like Privia Health.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Privia Health? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Privia Health’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 6.4% on the news that the company announced its Accountable Care Organizations (ACOs) achieved $233.1 million in Medicare shared savings for 2024, a 32% year-over-year increase.
This strong performance, which significantly outpaces industry benchmarks, prompted the company to raise its full-year 2025 Adjusted EBITDA guidance to a range of $113 million to $116 million. An Accountable Care Organization is a group of healthcare providers who work together to provide coordinated, high-quality care to their Medicare patients. The positive results also drew a favorable reaction from Wall Street. Analysts at JMP Securities raised their price target on the stock to $30 from $29, maintaining a Market Outperform rating and citing the impressive savings growth.
Privia Health is down 3.6% since the beginning of the year, and at $22.62 per share, it is trading 14.3% below its 52-week high of $26.40 from October 2025. Investors who bought $1,000 worth of Privia Health’s shares at the IPO in April 2021 would now be looking at an investment worth $651.02.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.