Kingdon Capital Management L.L.C. Buys New Stake in UnitedHealth Group Incorporated $UNH

Key Points

• Kingdon Capital Management invested $10.61 million in UnitedHealth Group, purchasing 20,262 shares that now represent 1.1% of its investment portfolio.
• UnitedHealth Group reported a missed earnings estimate for Q2, posting $4.08 EPS compared to the consensus of $4.45, while revenue increased by 12.9% year-over-year.
• The company announced a quarterly dividend of $2.21 per share, yielding 2.9%, set for payment on September 23rd to investors of record on September 15th.

Kingdon Capital Management L.L.C. purchased a new position in shares of UnitedHealth Group Incorporated (NYSE:UNH - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 20,262 shares of the healthcare conglomerate's stock, valued at approximately $10,612,000. UnitedHealth Group comprises 1.1% of Kingdon Capital Management L.L.C.'s investment portfolio, making the stock its 20th largest holding.

Several other large investors also recently modified their holdings of UNH. Bayforest Capital Ltd increased its stake in shares of UnitedHealth Group by 685.7% during the 1st quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate's stock worth $29,000 after purchasing an additional 48 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of UnitedHealth Group by 416.7% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 62 shares of the healthcare conglomerate's stock worth $32,000 after purchasing an additional 50 shares during the last quarter. Kapitalo Investimentos Ltda bought a new position in UnitedHealth Group in the 4th quarter worth approximately $41,000. Copia Wealth Management bought a new position in UnitedHealth Group in the 4th quarter worth approximately $42,000. Finally, IAG Wealth Partners LLC bought a new position in UnitedHealth Group in the 1st quarter worth approximately $42,000. Hedge funds and other institutional investors own 87.86% of the company's stock.

UnitedHealth Group Stock Performance

UNH stock traded up $7.48 during midday trading on Friday, reaching $309.77. 12,018,847 shares of the company's stock traded hands, compared to its average volume of 18,891,168. UnitedHealth Group Incorporated has a 52-week low of $234.60 and a 52-week high of $630.73. The stock has a market cap of $280.55 billion, a P/E ratio of 13.42, a PEG ratio of 2.00 and a beta of 0.44. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.73. The stock's 50-day moving average is $288.16 and its 200 day moving average is $379.63.

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

UnitedHealth Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Monday, September 15th will be paid a $2.21 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $8.84 dividend on an annualized basis and a dividend yield of 2.9%. UnitedHealth Group's dividend payout ratio is 38.30%.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Raymond James Financial cut shares of UnitedHealth Group from a "strong-buy" rating to a "market perform" rating in a research report on Wednesday, May 14th. Mizuho dropped their target price on shares of UnitedHealth Group from $515.00 to $350.00 and set an "outperform" rating on the stock in a research note on Friday, May 16th. Bank of America upped their target price on shares of UnitedHealth Group from $290.00 to $325.00 and gave the stock a "neutral" rating in a research note on Monday, August 18th. Hsbc Global Res downgraded shares of UnitedHealth Group from a "hold" rating to a "moderate sell" rating in a research report on Wednesday, May 21st. Finally, Oppenheimer lowered their price objective on shares of UnitedHealth Group from $400.00 to $325.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 30th. Fifteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, UnitedHealth Group presently has a consensus rating of "Moderate Buy" and a consensus target price of $353.00.

Insider Activity

In other news, CEO Patrick Hugh Conway sold 589 shares of the stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $305.00, for a total value of $179,645.00. Following the completion of the sale, the chief executive officer directly owned 10,398 shares of the company's stock, valued at $3,171,390. This represents a 5.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.28% of the stock is currently owned by company 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.