KeyCorp Issues Pessimistic Forecast for UnitedHealth Group (NYSE:UNH) Stock Price

Key Points

• KeyCorp has lowered its price target for UnitedHealth Group from $400.00 to $350.00, maintaining an "overweight" rating, which suggests a potential upside of 35.39% from current levels.
• Other analysts, including Wells Fargo and Piper Sandler, have also reduced their price targets, with the average rating being a "Moderate Buy" and an average price target of $382.24.
• UnitedHealth Group reported a miss in quarterly earnings with an EPS of $4.08, falling short of the $5.16 consensus estimate, despite a 12.9% year-over-year revenue increase.

UnitedHealth Group (NYSE:UNH - Free Report) had its price target trimmed by KeyCorp from $400.00 to $350.00 in a research note published on Wednesday,Benzinga reports. The firm currently has an overweight rating on the healthcare conglomerate's stock.

UNH has been the topic of several other reports. Truist Financial decreased their target price on shares of UnitedHealth Group from $360.00 to $345.00 and set a "buy" rating on the stock in a research report on Wednesday, July 16th. Erste Group Bank lowered shares of UnitedHealth Group from a "strong-buy" rating to a "hold" rating in a report on Wednesday, April 30th. TD Cowen lowered shares of UnitedHealth Group from a "buy" rating to a "hold" rating and set a $308.00 price target on the stock. in a report on Monday, May 19th. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of UnitedHealth Group from $521.00 to $362.00 and set a "buy" rating on the stock in a research note on Wednesday, May 14th. Finally, Barclays reiterated an "overweight" rating on shares of UnitedHealth Group in a research note on Thursday, July 17th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and fifteen have issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $378.95.

UnitedHealth Group Price Performance

Shares of NYSE:UNH traded up $5.36 on Wednesday, reaching $266.43. 22,302,965 shares of the company were exchanged, compared to its average volume of 13,886,933. 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 company has a 50-day moving average of $298.96 and a 200-day moving average of $420.36. UnitedHealth Group has a 1-year low of $248.88 and a 1-year high of $630.73. The firm has a market cap of $241.69 billion, a price-to-earnings ratio of 11.54, a price-to-earnings-growth ratio of 1.37 and a beta of 0.45.

UnitedHealth Group (NYSE:UNH - Get Free Report) last posted its earnings results on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share for the quarter, missing the consensus estimate of $5.16 by ($1.08). 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 quarter last year, the business posted $6.80 earnings per share. The business's revenue was up 12.9% compared to the same quarter last year. Equities analysts forecast that UnitedHealth Group will post 29.54 earnings per share for the current fiscal year.

UnitedHealth Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 24th. Shareholders of record on Monday, June 16th were issued a dividend of $2.21 per share. This represents a $8.84 annualized dividend and a yield of 3.32%. The ex-dividend date was Monday, June 16th. This is an increase from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's payout ratio is presently 37.02%.

Insider Activity

In related news, Director Timothy Patrick Flynn bought 1,533 shares of the firm's stock in a transaction on Wednesday, May 14th. The stock was purchased at an average price of $320.80 per share, with a total value of $491,786.40. Following the completion of the transaction, the director directly owned 6,033 shares of the company's stock, valued at $1,935,386.40. This trade represents a 34.07% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Kristen Gil bought 3,700 shares of the firm's stock in a transaction on Thursday, May 15th. The shares were bought at an average cost of $271.17 per share, with a total value of $1,003,329.00. Following the transaction, the director directly owned 3,818 shares of the company's stock, 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. In the last quarter, insiders have acquired 109,408 shares of company stock worth $31,607,768. 0.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. KPP Advisory Services LLC lifted its holdings in shares of UnitedHealth Group by 37.9% during the second quarter. KPP Advisory Services LLC now owns 5,300 shares of the healthcare conglomerate's stock worth $1,654,000 after buying an additional 1,458 shares during the last quarter. First Citizens Bank & Trust Co. raised its stake in shares of UnitedHealth Group by 17.7% in the second quarter. First Citizens Bank & Trust Co. now owns 47,616 shares of the healthcare conglomerate's stock valued at $14,855,000 after purchasing an additional 7,173 shares in the last quarter. Connors Investor Services Inc. raised its stake in shares of UnitedHealth Group by 227.3% in the second quarter. Connors Investor Services Inc. now owns 25,673 shares of the healthcare conglomerate's stock valued at $8,009,000 after purchasing an additional 17,829 shares in the last quarter. Warther Private Wealth LLC acquired a new position in shares of UnitedHealth Group in the second quarter valued at $32,007,000. Finally, Castle Wealth Management LLC raised its stake in shares of UnitedHealth Group by 85.2% in the second quarter. Castle Wealth Management LLC now owns 4,005 shares of the healthcare conglomerate's stock valued at $1,249,000 after purchasing an additional 1,842 shares in the last quarter. 87.86% of the stock is currently owned by institutional investors and hedge funds.

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.