Dodge & Cox Reduces Holdings in UnitedHealth Group Incorporated $UNH

Key Points

• Dodge & Cox has reduced its stake in UnitedHealth Group by 1.8%, now holding 4,020,368 shares valued at approximately $2.1 billion.
• Recent analyst reports have lowered their ratings on UnitedHealth Group, with several firms downgrading from "buy" to "hold" or "sell" positions.
• The company announced a quarterly dividend of $2.21, reflecting an annualized yield of 2.9%, with a payout ratio of 38.3%.

Dodge & Cox cut its stake in UnitedHealth Group Incorporated (NYSE:UNH - Free Report) by 1.8% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 4,020,368 shares of the healthcare conglomerate's stock after selling 72,860 shares during the period. Dodge & Cox owned about 0.44% of UnitedHealth Group worth $2,105,668,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in UnitedHealth Group in the fourth quarter valued at $26,000. Bayforest Capital Ltd increased its stake in UnitedHealth Group by 685.7% in the first 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. Clal Insurance Enterprises Holdings Ltd increased its stake in UnitedHealth Group by 416.7% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 62 shares of the healthcare conglomerate's stock valued at $32,000 after purchasing an additional 50 shares during the period. IAG Wealth Partners LLC acquired a new position in UnitedHealth Group in the first quarter valued at $42,000. Finally, Kapitalo Investimentos Ltda acquired a new position in UnitedHealth Group in the fourth quarter valued at $41,000. 87.86% of the stock is owned by hedge funds and other institutional investors.

UnitedHealth Group Price Performance

UnitedHealth Group stock traded up $3.7480 during mid-day trading on Friday, reaching $307.0980. The company had a trading volume of 14,867,565 shares, compared to its average volume of 23,438,662. UnitedHealth Group Incorporated has a 1 year low of $234.60 and a 1 year 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 capitalization of $278.13 billion, a P/E ratio of 13.31, a P/E/G ratio of 1.98 and a beta of 0.43. The stock's 50-day simple moving average is $288.39 and its 200-day simple moving average is $387.54.

UnitedHealth Group (NYSE:UNH - Get Free Report) last issued its earnings results on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.45 by ($0.37). The company had revenue of $111.62 billion during the quarter, compared to analysts' expectations of $111.75 billion. UnitedHealth Group had a net margin of 5.04% and a return on equity of 23.32%. The company's quarterly revenue was up 12.9% on a year-over-year basis. During the same period last year, the business posted $6.80 earnings per share. UnitedHealth Group has set its FY 2025 guidance at 16.000- EPS. On average, equities analysts predict that UnitedHealth Group Incorporated will post 29.54 EPS for the current year.

UnitedHealth Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Shareholders of record on Monday, September 15th will be issued a dividend of $2.21 per share. This represents a $8.84 annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, September 15th. UnitedHealth Group's dividend payout ratio (DPR) is 38.30%.

Insiders Place Their Bets

In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 589 shares of the firm's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $305.00, for a total transaction of $179,645.00. Following the completion of the transaction, the chief executive officer directly owned 10,398 shares in the company, valued at approximately $3,171,390. This trade represents a 5.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.28% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have commented on UNH shares. Wolfe Research dropped their price objective on shares of UnitedHealth Group from $501.00 to $390.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 20th. Morgan Stanley dropped their price objective on shares of UnitedHealth Group from $342.00 to $325.00 and set an "overweight" rating on the stock in a research note on Wednesday. HSBC reaffirmed a "reduce" rating and issued a $270.00 target price (down previously from $490.00) on shares of UnitedHealth Group in a report on Wednesday, May 21st. TD Securities reaffirmed a "hold" rating and issued a $308.00 target price (down previously from $520.00) on shares of UnitedHealth Group in a report on Monday, May 19th. Finally, Truist Financial lowered their target price on shares of UnitedHealth Group from $360.00 to $345.00 and set a "buy" rating on the stock in a report on Wednesday, July 16th. Fifteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $365.38.

UnitedHealth Group 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.