Charles Schwab Investment Management Inc. Acquires 847,054 Shares of UnitedHealth Group Incorporated (NYSE:UNH)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in UnitedHealth Group by 13.6%, acquiring an additional 847,054 shares, bringing their total ownership to approximately 7.07 million shares valued at $3.70 billion.
• UnitedHealth Group reported a quarterly earnings per share of $4.08, which fell short of analysts' estimates of $4.45, while their revenue grew by 12.9% year-over-year.
• The company has announced a quarterly dividend increase to $2.21 per share, reflecting a yield of 3.6%, with a payout ratio of 38.30%.

Charles Schwab Investment Management Inc. increased its position in shares of UnitedHealth Group Incorporated (NYSE:UNH - Free Report) by 13.6% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 7,070,385 shares of the healthcare conglomerate's stock after buying an additional 847,054 shares during the period. Charles Schwab Investment Management Inc. owned about 0.78% of UnitedHealth Group worth $3,702,736,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Marshall & Sterling Wealth Advisors Inc. bought a new position in UnitedHealth Group in the fourth quarter worth about $26,000. Bayforest Capital Ltd boosted its position in UnitedHealth Group by 685.7% during the 1st quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate's stock valued at $29,000 after purchasing an additional 48 shares during the period. Aster Capital Management DIFC Ltd acquired a new stake in UnitedHealth Group in the fourth quarter worth $30,000. Kapitalo Investimentos Ltda acquired a new position in shares of UnitedHealth Group during the fourth quarter valued at $41,000. Finally, Copia Wealth Management acquired a new stake in shares of UnitedHealth Group in the 4th quarter worth about $42,000. 87.86% of the stock is owned by hedge funds and other institutional investors.

UnitedHealth Group Price Performance

Shares of UNH stock traded down $1.37 during trading hours on Thursday, reaching $244.42. 11,331,473 shares of the company were exchanged, compared to its average volume of 18,403,832. The stock's fifty day moving average is $292.78 and its two-hundred day moving average is $408.71. UnitedHealth Group Incorporated has a fifty-two week low of $234.60 and a fifty-two week high of $630.73. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.85 and a quick ratio of 0.85. The company has a market cap of $221.72 billion, a price-to-earnings ratio of 10.59, a P/E/G ratio of 1.59 and a beta of 0.43.

UnitedHealth Group (NYSE:UNH - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share for the quarter, missing the consensus estimate of $4.45 by ($0.37). UnitedHealth Group had a return on equity of 23.32% and a net margin of 5.04%. The firm had revenue of $111.62 billion for the quarter, compared to the consensus estimate of $111.75 billion. During the same period in the prior year, the firm posted $6.80 earnings per share. The business's revenue for the quarter was up 12.9% compared to the same quarter last year. Sell-side analysts forecast that UnitedHealth Group Incorporated will post 29.54 earnings per share for the current fiscal year.

UnitedHealth Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 24th. Investors of record on Monday, June 16th were paid a dividend of $2.21 per share. This represents a $8.84 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend was Monday, June 16th. This is a positive change from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's payout ratio is 38.30%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on UNH shares. Wells Fargo & Company reduced their price target on UnitedHealth Group from $306.00 to $267.00 and set an "overweight" rating for the company in a research report on Monday. Robert W. Baird reissued an "underperform" rating and set a $198.00 target price (down previously from $312.00) on shares of UnitedHealth Group in a research note on Thursday, July 31st. Erste Group Bank cut shares of UnitedHealth Group from a "strong-buy" rating to a "hold" rating in a report on Wednesday, April 30th. Oppenheimer dropped their target price on UnitedHealth Group from $400.00 to $325.00 and set an "outperform" rating on the stock in a report on Wednesday, July 30th. Finally, Wall Street Zen cut UnitedHealth Group from a "buy" rating to a "hold" rating in a research report on Saturday, May 24th. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $366.52.

Insider Buying and Selling at UnitedHealth Group

In related news, Director Timothy Patrick Flynn acquired 1,533 shares of the company's stock in a transaction that occurred on Wednesday, May 14th. The shares were acquired at an average cost of $320.80 per share, for a total transaction of $491,786.40. Following the completion of the acquisition, the director directly owned 6,033 shares in the company, valued at approximately $1,935,386.40. The trade was a 34.07% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Kristen Gil purchased 3,700 shares of the company's stock in a transaction on Thursday, May 15th. The stock was purchased at an average cost of $271.17 per share, for a total transaction of $1,003,329.00. Following the purchase, the director directly owned 3,818 shares in the company, valued at approximately $1,035,327.06. This trade represents a 3,135.59% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased 109,408 shares of company stock worth $31,607,768 over the last ninety days. 0.28% of the stock is owned by corporate insiders.

UnitedHealth Group Company Profile

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage.