UnitedHealth Group (NYSE:UNH) Posts Quarterly Earnings Results, Misses Expectations By $1.08 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) announced its earnings results on Tuesday. The healthcare conglomerate reported $4.08 EPS for the quarter, missing the consensus estimate of $5.16 by ($1.08), Zacks reports. UnitedHealth Group had a net margin of 5.39% and a return on equity of 26.29%. During the same quarter in the previous year, the company posted $6.80 earnings per share. UnitedHealth Group's quarterly revenue was up 12.9% compared to the same quarter last year. UnitedHealth Group updated its FY 2025 guidance to 16.000- EPS.

UnitedHealth Group Stock Down 5.1%

Shares of NYSE UNH opened at $267.85 on Tuesday. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 0.71. UnitedHealth Group has a 52 week low of $248.88 and a 52 week high of $630.73. The firm's fifty day moving average is $300.91 and its 200 day moving average is $422.56. The company has a market cap of $242.98 billion, a price-to-earnings ratio of 11.19, a PEG ratio of 1.39 and a beta of 0.45.

UnitedHealth Group Increases Dividend

The firm also recently declared 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. The ex-dividend date of this dividend was Monday, June 16th. This is an increase from UnitedHealth Group's previous quarterly dividend of $2.10. This represents a $8.84 annualized dividend and a dividend yield of 3.30%. UnitedHealth Group's dividend payout ratio (DPR) is 37.02%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on UNH shares. Raymond James Financial downgraded shares of UnitedHealth Group from a "strong-buy" rating to a "market perform" rating in a report on Wednesday, May 14th. Robert W. Baird downgraded shares of UnitedHealth Group from an "outperform" rating to a "neutral" rating and set a $312.00 price objective for the company. in a report on Wednesday, June 11th. Argus lowered shares of UnitedHealth Group from a "buy" rating to a "hold" rating in a research report on Monday, April 21st. Truist Financial cut their target price on shares of UnitedHealth Group from $360.00 to $345.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Finally, Deutsche Bank Aktiengesellschaft cut their target price on shares of UnitedHealth Group from $521.00 to $362.00 and set a "buy" rating for the company in a research report on Wednesday, May 14th. One research analyst has rated the stock with a sell rating, nine have given a hold rating and fifteen have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $392.29.

Insider Buying and Selling

In other UnitedHealth Group news, Director Timothy Patrick Flynn bought 1,533 shares of the company's stock in a transaction dated Wednesday, May 14th. The shares were purchased at an average price of $320.80 per share, for a total transaction of $491,786.40. Following the acquisition, the director owned 6,033 shares in the company, valued at approximately $1,935,386.40. This represents a 34.07% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO John F. Rex purchased 17,175 shares of the stock in a transaction dated Friday, May 16th. The stock was bought at an average cost of $291.12 per share, with a total value of $4,999,986.00. Following the transaction, the chief financial officer owned 203,796 shares in the company, valued at $59,329,091.52. The trade was a 9.20% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders bought 109,408 shares of company stock valued at $31,607,768 over the last quarter. Company insiders own 0.28% of the company's stock.

Hedge Funds Weigh In On UnitedHealth Group

An institutional investor recently raised its position in UnitedHealth Group stock. Revolve Wealth Partners LLC boosted its holdings in UnitedHealth Group Incorporated (NYSE:UNH - Free Report) by 137.1% in the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 4,019 shares of the healthcare conglomerate's stock after buying an additional 2,324 shares during the quarter. Revolve Wealth Partners LLC's holdings in UnitedHealth Group were worth $2,033,000 at the end of the most recent quarter. Hedge funds and other institutional investors own 87.86% of the company's stock.

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.

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.