UnitedHealth Group Incorporated (NYSE:UNH) Sees Large Increase in Short Interest

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 target of a significant increase in short interest in 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. Based on an average daily volume of 17,890,000 shares, the short-interest ratio is presently 0.7 days. Currently,1.4% of the company's shares are short sold. Currently,1.4% of the company's shares are short sold. Based on an average daily volume of 17,890,000 shares, the short-interest ratio is presently 0.7 days.

UnitedHealth Group Stock Performance

Shares of UNH stock traded down $2.79 during mid-day trading on Thursday, hitting $242.99. 6,587,627 shares of the stock were exchanged, compared to its average volume of 12,083,630. The stock's fifty day simple moving average is $293.86 and its two-hundred day simple moving average is $410.54. The stock has a market capitalization of $220.43 billion, a price-to-earnings ratio of 10.53, a P/E/G ratio of 1.62 and a beta of 0.43. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.85 and a current ratio of 0.85. UnitedHealth Group has a 12-month low of $234.60 and a 12-month high of $630.73.

UnitedHealth Group (NYSE:UNH - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.45 by ($0.37). UnitedHealth Group had a return on equity of 23.32% and a net margin of 5.04%. 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 previous year, the business posted $6.80 earnings per share. The company's revenue for the quarter was up 12.9% on a year-over-year basis. On average, analysts forecast that UnitedHealth Group will post 29.54 EPS for the current year.

UnitedHealth Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 24th. Stockholders of record on Monday, June 16th were issued a $2.21 dividend. The ex-dividend date of this dividend was Monday, June 16th. This represents a $8.84 annualized dividend and a dividend yield of 3.6%. This is an increase from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's payout ratio is 38.30%.

Insiders Place Their Bets

In related news, Director Timothy Patrick Flynn bought 1,533 shares of UnitedHealth Group stock in a transaction dated Wednesday, May 14th. The shares were acquired at an average cost of $320.80 per share, with a total value of $491,786.40. Following the completion of the transaction, the director owned 6,033 shares in the company, valued at $1,935,386.40. The trade was a 34.07% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Stephen J. Hemsley acquired 86,700 shares of the stock in a transaction that occurred on Friday, May 16th. The stock was acquired at an average cost of $288.57 per share, with a total value of $25,019,019.00. Following the completion of the purchase, the chief executive officer owned 679,493 shares of the company's stock, valued at $196,081,295.01. This trade represents a 14.63% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders have bought 109,408 shares of company stock valued at $31,607,768. Insiders own 0.28% of the company's stock.

Institutional Trading of UnitedHealth Group

Institutional investors have recently modified their holdings of the business. LFA Lugano Financial Advisors SA acquired a new stake in shares of UnitedHealth Group in the second quarter valued at about $25,000. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in shares of UnitedHealth Group during the 4th quarter worth approximately $26,000. Hurley Capital LLC purchased a new position in UnitedHealth Group in the 4th quarter valued at approximately $28,000. Bayforest Capital Ltd grew its holdings in UnitedHealth Group by 685.7% in the first quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate's stock valued at $29,000 after purchasing an additional 48 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $30,000. 87.86% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have commented on UNH. KeyCorp decreased their price objective on shares of UnitedHealth Group from $400.00 to $350.00 and set an "overweight" rating for the company in a research note on Wednesday, July 30th. Mizuho decreased their price objective on UnitedHealth Group from $515.00 to $350.00 and set an "outperform" rating for the company in a report on Friday, May 16th. Erste Group Bank lowered UnitedHealth Group from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, April 30th. Truist Financial reduced their target price on UnitedHealth Group from $360.00 to $345.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. Finally, Royal Bank Of Canada decreased their target price on shares of UnitedHealth Group from $355.00 to $286.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 30th. Three research analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, UnitedHealth Group presently has an average rating of "Hold" and an average price target of $366.52.

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.