UnitedHealth Group Incorporated $UNH Stock Holdings Increased by Capital World Investors

Key Points

• Capital World Investors increased its UnitedHealth stake by 3.8% in the fourth quarter, adding 824,120 shares and bringing its holding to 22.6 million shares worth about $7.46 billion.
• Other institutional investors also boosted exposure to UNH, with hedge funds and other institutions owning 87.86% of the stock overall, showing continued strong professional interest.
• Analyst sentiment has improved: several firms raised price targets or upgraded the stock, and UnitedHealth also lifted its quarterly dividend by 5% to $2.32 per share.

Capital World Investors lifted its stake in UnitedHealth Group Incorporated (NYSE:UNH - Free Report) by 3.8% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 22,591,042 shares of the healthcare conglomerate's stock after purchasing an additional 824,120 shares during the quarter. UnitedHealth Group accounts for 1.0% of Capital World Investors' portfolio, making the stock its 21st largest position. Capital World Investors owned about 2.49% of UnitedHealth Group worth $7,457,723,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in UNH. Norges Bank purchased a new stake in shares of UnitedHealth Group in the fourth quarter worth approximately $4,376,167,000. Capital Research Global Investors raised its position in UnitedHealth Group by 126.9% during the third quarter. Capital Research Global Investors now owns 13,042,049 shares of the healthcare conglomerate's stock valued at $4,503,419,000 after acquiring an additional 7,293,009 shares in the last quarter. Capital International Investors raised its position in UnitedHealth Group by 11.1% during the third quarter. Capital International Investors now owns 17,499,949 shares of the healthcare conglomerate's stock valued at $6,042,710,000 after acquiring an additional 1,747,337 shares in the last quarter. Lone Pine Capital LLC bought a new position in UnitedHealth Group during the second quarter valued at approximately $528,273,000. Finally, Bank of New York Mellon Corp raised its position in UnitedHealth Group by 18.2% during the fourth quarter. Bank of New York Mellon Corp now owns 9,157,234 shares of the healthcare conglomerate's stock valued at $3,022,894,000 after acquiring an additional 1,407,412 shares in the last quarter. 87.86% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts recently weighed in on UNH shares. Wells Fargo & Company raised their price objective on shares of UnitedHealth Group from $370.00 to $397.00 and gave the company an "overweight" rating in a research report on Wednesday, April 22nd. Bank of America raised shares of UnitedHealth Group from a "neutral" rating to a "buy" rating and raised their price objective for the company from $420.00 to $450.00 in a research report on Thursday. Raymond James Financial upgraded UnitedHealth Group from a "market perform" rating to an "outperform" rating and set a $330.00 price target on the stock in a report on Wednesday, April 1st. Oppenheimer increased their price target on UnitedHealth Group from $385.00 to $405.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. Finally, Weiss Ratings upgraded UnitedHealth Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $404.42.

Insider Activity

In related news, CEO Patrick Hugh Conway sold 800 shares of the firm's stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $355.00, for a total value of $284,000.00. Following the completion of the transaction, the chief executive officer directly owned 17,805 shares of the company's stock, valued at $6,320,775. This trade represents a 4.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.28% of the company's stock.

Key Stories Impacting UnitedHealth Group

Here are the key news stories impacting UnitedHealth Group this week:

• Positive Sentiment: Bank of America upgraded UnitedHealth Group to Buy and raised its price target to $450, citing improving medical cost trends and a better risk/reward setup heading into earnings. Article link
• Positive Sentiment: Morgan Stanley also lifted its price target on UNH to $453 and kept an Overweight rating, reinforcing the view that sentiment is improving. Article link
• Positive Sentiment: UnitedHealth raised its quarterly dividend by 5% to $2.32 per share, extending its long streak of annual dividend increases and signaling financial strength. Article link
• Positive Sentiment: Healthcare stocks, including UnitedHealth, are benefiting from a broader sector rebound as investors seek defensive stability and rotate out of more volatile areas of the market. Article link
• Neutral Sentiment: Recent coverage notes that UNH has already recovered sharply year to date, outpacing the broader market and its industry peer group. Article link
• Negative Sentiment: Some articles continue to highlight ongoing concerns around rising medical costs, managed-care scrutiny, and the stock’s earlier challenges, which could limit upside if operating trends worsen. Article link

UnitedHealth Group Trading Up 1.0%

Shares of UnitedHealth Group stock opened at $400.61 on Friday. The company's fifty day simple moving average is $348.12 and its 200-day simple moving average is $323.59. The company has a market cap of $363.81 billion, a price-to-earnings ratio of 30.26, a PEG ratio of 1.72 and a beta of 0.64. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.69. UnitedHealth Group Incorporated has a 1 year low of $234.60 and a 1 year high of $404.15.

UnitedHealth Group (NYSE:UNH - Get Free Report) last announced its quarterly earnings data on Tuesday, April 21st. The healthcare conglomerate reported $7.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.76 by $0.47. The business had revenue of $111.65 billion for the quarter, compared to the consensus estimate of $109.84 billion. UnitedHealth Group had a net margin of 2.68% and a return on equity of 14.65%. UnitedHealth Group's quarterly revenue was up 2.0% on a year-over-year basis. During the same quarter last year, the company posted $7.20 earnings per share. UnitedHealth Group has set its FY 2026 guidance at 18.250- EPS. As a group, sell-side analysts expect that UnitedHealth Group Incorporated will post 18.32 EPS for the current year.

UnitedHealth Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 23rd. Stockholders of record on Monday, June 15th will be paid a $2.32 dividend. The ex-dividend date is Monday, June 15th. This is a positive change from UnitedHealth Group's previous quarterly dividend of $2.21. This represents a $9.28 annualized dividend and a dividend yield of 2.3%. UnitedHealth Group's dividend payout ratio is 66.77%.

UnitedHealth Group Company Profile

UnitedHealth Group Inc is a diversified health care company headquartered in Minnetonka, Minnesota, that operates two primary business platforms: UnitedHealthcare and Optum. Founded in 1977, the company provides a broad range of health benefits and health care services to individuals, employers, governmental entities and other organizations. Its operations span commercial employer-sponsored plans, individual and Medicare and Medicaid programs, and services for customers and health systems in the United States and selected international markets.

UnitedHealthcare is the company's benefits business, administering health plans and networks, managing provider relationships, and offering coverage products for employers, individuals, and government-sponsored programs.

Want to see what other hedge funds are holding UNH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for UnitedHealth Group Incorporated (NYSE:UNH - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.