Traders Purchase High Volume of UnitedHealth Group Call Options (NYSE:UNH)

Key Points

• Traders have significantly increased their investment in UnitedHealth Group, purchasing 363,909 call options, reflecting a 14% rise from the average daily volume.
• Institutional investors now own 87.86% of UnitedHealth Group's stock, with several firms, including LFA Lugano Financial Advisors and Bayforest Capital Ltd, acquiring new positions or increasing their stakes recently.
• UnitedHealth Group announced a quarterly dividend of $2.21 per share, with an annualized dividend yield of 2.5%, signaling ongoing financial support for shareholders despite recent earnings misses.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report) was the recipient of some unusual options trading on Tuesday. Stock traders acquired 363,909 call options on the stock. Thisisanincreaseof14% compared to the average daily volume of 317,922 call options.

Institutional Investors Weigh In On UnitedHealth Group

A number of institutional investors have recently modified their holdings of the business. LFA Lugano Financial Advisors SA acquired a new position in shares of UnitedHealth Group in the second quarter valued at approximately $25,000. Bayforest Capital Ltd increased its stake in shares of 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 buying an additional 48 shares during the period. Sagard Holdings Management Inc. bought a new stake in UnitedHealth Group in the second quarter valued at approximately $29,000. Islay Capital Management LLC bought a new stake in UnitedHealth Group in the second quarter valued at approximately $31,000. Finally, Clal Insurance Enterprises Holdings Ltd boosted its holdings 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 buying an additional 50 shares in the last quarter. Institutional investors own 87.86% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on UNH shares. UBS Group restated a "buy" rating on shares of UnitedHealth Group in a report on Thursday, July 17th. Robert W. Baird reaffirmed an "underperform" rating and set a $198.00 price target (down from $312.00) on shares of UnitedHealth Group in a research note on Thursday, July 31st. 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. Wolfe Research reduced their price objective on UnitedHealth Group from $501.00 to $390.00 and set an "outperform" rating for the company in a research note on Tuesday, May 20th. Finally, Wall Street Zen lowered UnitedHealth Group from a "buy" rating to a "hold" rating in a research note on Saturday, May 24th. Sixteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $355.77.

UnitedHealth Group Stock Up 8.7%

UNH stock traded up $27.96 during mid-day trading on Tuesday, hitting $348.21. 27,333,583 shares of the company were exchanged, compared to its average volume of 12,888,981. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.85 and a current ratio of 0.85. The firm has a market cap of $315.36 billion, a P/E ratio of 15.11, a P/E/G ratio of 2.04 and a beta of 0.45. The firm's 50 day simple moving average is $288.96 and its 200 day simple moving average is $371.54. UnitedHealth Group has a 1-year low of $234.60 and a 1-year high of $630.73.

UnitedHealth Group (NYSE:UNH - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share (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 during the quarter, compared to analyst estimates of $111.75 billion. During the same quarter last year, the business earned $6.80 earnings per share. UnitedHealth Group's revenue for the quarter was up 12.9% on a year-over-year basis. UnitedHealth Group has set its FY 2025 guidance at 16.000- EPS. On average, sell-side analysts predict that UnitedHealth Group will post 29.54 EPS for the current fiscal year.

UnitedHealth Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Monday, September 15th will be given a $2.21 dividend. This represents a $8.84 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, September 15th. UnitedHealth Group's payout ratio is presently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.