Jefferies Financial Group Inc. Raises Position in UnitedHealth Group Incorporated (NYSE:UNH)

Key Points

• Jefferies Financial Group Inc. raised its holdings in UnitedHealth Group by 109.7% during the first quarter, now owning 15,119 shares valued at approximately $7.9 million.
• UnitedHealth Group's stock recently dropped 4.9%, closing at $237.40, and reported quarterly earnings of $4.08 per share, missing analysts' estimates.
• The company announced a dividend increase to $2.21 per share, representing a 3.7% yield, up from the previous $2.10, with a payout ratio of 38.3%.

Jefferies Financial Group Inc. raised its holdings in UnitedHealth Group Incorporated (NYSE:UNH - Free Report) by 109.7% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 15,119 shares of the healthcare conglomerate's stock after purchasing an additional 7,910 shares during the quarter. Jefferies Financial Group Inc.'s holdings in UnitedHealth Group were worth $7,919,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also modified their holdings of the business. Marshall & Sterling Wealth Advisors Inc. purchased a new position in UnitedHealth Group in the fourth quarter valued at about $26,000. Hurley Capital LLC purchased a new position in UnitedHealth Group during the fourth quarter worth $28,000. Bayforest Capital Ltd lifted its holdings in UnitedHealth Group by 685.7% in 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 in the last quarter. Aster Capital Management DIFC Ltd acquired a new position in UnitedHealth Group in the 4th quarter valued at $30,000. Finally, IAG Wealth Partners LLC purchased a new position in UnitedHealth Group during the first quarter worth about $42,000. 87.86% of the stock is owned by hedge funds and other institutional investors.

UnitedHealth Group Stock Down 4.9%

Shares of UnitedHealth Group stock opened at $237.40 on Friday. The stock's fifty day moving average is $296.86 and its 200-day moving average is $416.24. The firm has a market capitalization of $215.36 billion, a PE ratio of 10.29, a price-to-earnings-growth ratio of 1.56 and a beta of 0.43. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 0.73. UnitedHealth Group Incorporated has a 12-month low of $234.60 and a 12-month high of $630.73.

UnitedHealth Group (NYSE:UNH - Get Free Report) last posted its quarterly 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). UnitedHealth Group had a return on equity of 23.32% and a net margin of 5.04%. The company had revenue of $111.62 billion during the quarter, compared to analysts' expectations of $111.75 billion. During the same period last year, the company earned $6.80 earnings per share. UnitedHealth Group's revenue for the quarter was up 12.9% compared to the same quarter last year. Equities analysts anticipate that UnitedHealth Group Incorporated will post 29.54 earnings per share for the current year.

UnitedHealth Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 24th. Investors of record on Monday, June 16th were paid a $2.21 dividend. This represents a $8.84 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date was Monday, June 16th. This is a boost from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's dividend payout ratio (DPR) is 38.30%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on UNH shares. Bank of America lowered their price objective on shares of UnitedHealth Group from $350.00 to $300.00 and set a "neutral" rating for the company in a research note on Tuesday. Morgan Stanley dropped their price target on shares of UnitedHealth Group from $563.00 to $374.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 14th. Wall Street Zen lowered shares of UnitedHealth Group from a "buy" rating to a "hold" rating in a research note on Saturday, May 24th. Argus lowered UnitedHealth Group from a "buy" rating to a "hold" rating in a research report on Monday, April 21st. Finally, Mizuho dropped their price target on UnitedHealth Group from $515.00 to $350.00 and set an "outperform" rating on the stock in a research report on Friday, May 16th. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have issued a buy rating to the stock. According to MarketBeat.com, UnitedHealth Group has an average rating of "Hold" and a consensus price target of $373.52.

Insiders Place Their Bets

In other UnitedHealth Group news, CEO Stephen J. Hemsley purchased 86,700 shares of the company's stock in a transaction on Friday, May 16th. The shares were bought at an average cost of $288.57 per share, with a total value of $25,019,019.00. Following the transaction, the chief executive officer directly owned 679,493 shares in the company, valued at approximately $196,081,295.01. This represents a 14.63% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Timothy Patrick Flynn bought 1,533 shares of the firm's stock in a transaction that occurred on Wednesday, May 14th. The shares were purchased at an average cost of $320.80 per share, for a total transaction of $491,786.40. Following the completion of the transaction, the director owned 6,033 shares of the company's stock, valued at $1,935,386.40. This represents a 34.07% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired a total of 109,408 shares of company stock worth $31,607,768 in the last ninety days. 0.28% of the stock is owned by insiders.

About UnitedHealth Group

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.

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