Short Interest in UnitedHealth Group Incorporated (NYSE:UNH) Rises By 176.9%

Key Points

• The short interest in UnitedHealth Group (NYSE:UNH) rose by 176.9% in July, reaching 12,710,000 shares, which is about 1.4% of the company's total shares.
• Despite reporting earnings per share of $4.08 for the last quarter, UnitedHealth missed analysts' estimates by $0.37 and had a revenue of $111.62 billion, slightly below expectations.
• UnitedHealth Group has recently increased its quarterly dividend to $2.21 per share, raising the annualized yield to 3.7%.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report) was the recipient of a significant increase in short interest during the month of July. As of July 15th, there was short interest totaling 12,710,000 shares, anincreaseof176.9% from the June 30th total of 4,590,000 shares. Approximately1.4% of the company's shares are sold short. Based on an average trading volume of 17,890,000 shares, the short-interest ratio is presently 0.7 days. Based on an average trading volume of 17,890,000 shares, the short-interest ratio is presently 0.7 days. Approximately1.4% of the company's shares are sold short.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. UBS Group reiterated a "buy" rating on shares of UnitedHealth Group in a report on Thursday, July 17th. JPMorgan Chase & Co. lifted their price objective on shares of UnitedHealth Group from $405.00 to $418.00 and gave the stock an "overweight" rating in a research note on Friday, June 20th. Baird R W cut shares of UnitedHealth Group from a "hold" rating to a "strong sell" rating in a research note on Thursday. HSBC reaffirmed a "reduce" rating and set a $270.00 price target (down from $490.00) on shares of UnitedHealth Group in a research note on Wednesday, May 21st. Finally, Barclays reaffirmed an "overweight" rating on shares of UnitedHealth Group in a research note on Thursday, July 17th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $373.52.

Insider Activity

In other news, Director Kristen Gil purchased 3,700 shares of the business's stock in a transaction dated Thursday, May 15th. The shares were purchased at an average price of $271.17 per share, for a total transaction of $1,003,329.00. Following the completion of the acquisition, the director directly owned 3,818 shares in the company, valued at $1,035,327.06. This represents a 3,135.59% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Patrick Hugh Conway sold 589 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $305.00, for a total transaction of $179,645.00. Following the completion of the sale, the chief executive officer owned 10,398 shares in the company, valued at $3,171,390. This represents a 5.36% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders purchased 109,408 shares of company stock valued at $31,607,768. 0.28% of the stock is owned by corporate insiders.

Institutional Trading of UnitedHealth Group

Hedge funds have recently added to or reduced their stakes in the company. Financial Management Professionals Inc. raised its position in UnitedHealth Group by 0.8% during the first quarter. Financial Management Professionals Inc. now owns 2,224 shares of the healthcare conglomerate's stock worth $1,165,000 after acquiring an additional 17 shares during the period. Global Wealth Strategies & Associates raised its position in shares of UnitedHealth Group by 28.6% in the first quarter. Global Wealth Strategies & Associates now owns 90 shares of the healthcare conglomerate's stock valued at $47,000 after buying an additional 20 shares during the last quarter. Kolinsky Wealth Management LLC raised its position in shares of UnitedHealth Group by 1.0% in the fourth quarter. Kolinsky Wealth Management LLC now owns 2,135 shares of the healthcare conglomerate's stock valued at $1,080,000 after buying an additional 21 shares during the last quarter. Retirement Planning Group LLC raised its position in shares of UnitedHealth Group by 5.1% in the first quarter. Retirement Planning Group LLC now owns 430 shares of the healthcare conglomerate's stock valued at $225,000 after buying an additional 21 shares during the last quarter. Finally, Net Worth Advisory Group increased its position in UnitedHealth Group by 0.6% during the first quarter. Net Worth Advisory Group now owns 3,642 shares of the healthcare conglomerate's stock worth $1,907,000 after purchasing an additional 21 shares during the last quarter. 87.86% of the stock is owned by hedge funds and other institutional investors.

UnitedHealth Group Stock Down 4.9%

NYSE:UNH opened at $237.40 on Monday. The company has a market cap of $215.36 billion, a PE ratio of 10.29, a P/E/G ratio of 1.50 and a beta of 0.43. UnitedHealth Group has a twelve month low of $234.60 and a twelve month high of $630.73. 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's 50 day moving average is $296.86 and its two-hundred day moving average is $414.69.

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

UnitedHealth Group Increases Dividend

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

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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