UnitedHealth Group (NYSE:UNH) Posts Quarterly Earnings Results, Misses Estimates By $0.37 EPS

Key Points

• UnitedHealth Group reported quarterly earnings of $4.08 EPS, missing expectations by $1.08 and down from $6.80 EPS in the same quarter last year.
• The company announced a quarterly dividend increase to $2.21 per share, resulting in an annualized dividend of $8.84 and a yield of 3.30%.
• Shares of UnitedHealth Group fell 5.1% following the earnings report, and analysts have adjusted their ratings, leading to a current consensus of "Moderate Buy."

UnitedHealth Group (NYSE:UNH - Get Free Report) posted its quarterly earnings data on Tuesday. The healthcare conglomerate reported $4.08 earnings per share for the quarter, missing the consensus estimate of $4.45 by ($0.37), Zacks reports. The company had revenue of $111.62 billion for the quarter, compared to analysts' expectations of $111.75 billion. UnitedHealth Group had a net margin of 5.04% and a return on equity of 23.32%. The business's quarterly revenue was up 12.9% compared to the same quarter last year. During the same quarter last year, the business posted $6.80 EPS. UnitedHealth Group updated its FY 2025 guidance to 16.000- EPS.

UnitedHealth Group Stock Performance

NYSE UNH traded down $12.16 on Friday, reaching $237.40. 39,737,459 shares of the stock were exchanged, compared to its average volume of 11,975,644. The firm has a market capitalization of $215.36 billion, a PE ratio of 10.29, a PEG ratio of 1.54 and a beta of 0.45. The company's 50-day simple moving average is $298.02 and its two-hundred day simple moving average is $418.35. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.73. UnitedHealth Group has a one year low of $234.60 and a one year high of $630.73.

UnitedHealth Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 24th. Shareholders of record on Monday, June 16th were paid a dividend of $2.21 per share. This represents a $8.84 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date was Monday, June 16th. This is a positive change from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's dividend payout ratio (DPR) is 37.02%.

Insider Activity at UnitedHealth Group

In other news, Director Kristen Gil purchased 3,700 shares of the company's stock in a transaction that occurred on Thursday, May 15th. The stock was bought at an average cost of $271.17 per share, with a total value of $1,003,329.00. Following the completion of the purchase, the director owned 3,818 shares in the company, valued at approximately $1,035,327.06. This represents a 3,135.59% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Patrick Hugh Conway sold 589 shares of the stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $305.00, for a total value of $179,645.00. Following the transaction, the chief executive officer directly owned 10,398 shares of the company's stock, valued at approximately $3,171,390. The trade was a 5.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders purchased 109,408 shares of company stock valued at $31,607,768 in the last 90 days. 0.28% of the stock is currently owned by insiders.

Institutional Trading of UnitedHealth Group

A hedge fund recently raised its stake in UnitedHealth Group stock. Revolve Wealth Partners LLC lifted its position in UnitedHealth Group Incorporated (NYSE:UNH - Free Report) by 137.1% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,019 shares of the healthcare conglomerate's stock after acquiring an additional 2,324 shares during the quarter. Revolve Wealth Partners LLC's holdings in UnitedHealth Group were worth $2,033,000 as of its most recent SEC filing. 87.86% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on UNH. Piper Sandler lowered their price objective on shares of UnitedHealth Group from $353.00 to $317.00 and set an "overweight" rating for the company in a report on Wednesday. JPMorgan Chase & Co. upped their price target on shares of UnitedHealth Group from $405.00 to $418.00 and gave the company an "overweight" rating in a report on Friday, June 20th. Wolfe Research lowered their price target on shares of UnitedHealth Group from $501.00 to $390.00 and set an "outperform" rating for the company in a report on Tuesday, May 20th. Baird R W lowered shares of UnitedHealth Group from a "hold" rating to a "strong sell" rating in a report on Thursday. Finally, KeyCorp dropped their price target on UnitedHealth Group from $400.00 to $350.00 and set an "overweight" rating for the company in a research note on Wednesday. Three research analysts have rated the stock with a sell rating, seven have issued a hold rating and fifteen have issued a buy rating to the company's stock. Based on data from MarketBeat.com, UnitedHealth Group has a consensus rating of "Hold" and an average target price of $373.52.

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.