UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report)'s share price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $282.12, but opened at $265.70. UnitedHealth Group shares last traded at $270.63, with a volume of 12,078,849 shares changing hands.
The healthcare conglomerate reported $4.08 EPS for the quarter, missing the consensus estimate of $5.16 by ($1.08). UnitedHealth Group had a net margin of 5.39% and a return on equity of 26.29%. The firm's revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter last year, the business posted $6.80 EPS.
UnitedHealth Group Increases Dividend
The business also recently announced a quarterly dividend, which was paid on Tuesday, June 24th. Stockholders of record on Monday, June 16th were given a $2.21 dividend. This is a positive change from UnitedHealth Group's previous quarterly dividend of $2.10. The ex-dividend date was Monday, June 16th. This represents a $8.84 annualized dividend and a dividend yield of 3.27%. UnitedHealth Group's dividend payout ratio (DPR) is 37.02%.
Analysts Set New Price Targets
UNH has been the topic of several research analyst reports. Wolfe Research dropped their target price on shares of UnitedHealth Group from $501.00 to $390.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 20th. Wells Fargo & Company lowered their price target on shares of UnitedHealth Group from $351.00 to $306.00 and set an "overweight" rating on the stock in a research report on Friday. JPMorgan Chase & Co. boosted their price target on shares of UnitedHealth Group from $405.00 to $418.00 and gave the stock an "overweight" rating in a research report on Friday, June 20th. HSBC restated a "reduce" rating and set a $270.00 price target (down from $490.00) on shares of UnitedHealth Group in a research report on Wednesday, May 21st. Finally, Baird R W lowered shares of UnitedHealth Group from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 11th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and fifteen have given a buy rating to the stock. Based on data from MarketBeat, UnitedHealth Group currently has an average rating of "Moderate Buy" and an average target price of $392.29.
Get Our Latest Analysis on UNH
Insiders Place Their Bets
In other UnitedHealth Group news, CEO Stephen J. Hemsley purchased 86,700 shares of UnitedHealth Group stock in a transaction that occurred on Friday, May 16th. The stock was purchased at an average price of $288.57 per share, for a total transaction of $25,019,019.00. Following the transaction, the chief executive officer directly owned 679,493 shares in the company, valued at $196,081,295.01. This trade represents a 14.63% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Kristen Gil purchased 3,700 shares of UnitedHealth Group stock in a transaction that occurred on Thursday, May 15th. The stock was acquired at an average price of $271.17 per share, with a total value of $1,003,329.00. Following the transaction, the director owned 3,818 shares in the company, valued at $1,035,327.06. The trade was a 3,135.59% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 109,408 shares of company stock worth $31,607,768. 0.28% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On UnitedHealth Group
A number of large investors have recently made changes to their positions in the stock. Marshall & Sterling Wealth Advisors Inc. acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $26,000. Hurley Capital LLC acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $28,000. Bayforest Capital Ltd grew its stake in UnitedHealth Group by 685.7% in the 1st quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate's stock valued at $29,000 after acquiring an additional 48 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $30,000. Finally, Clal Insurance Enterprises Holdings Ltd grew its stake in UnitedHealth Group by 416.7% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 62 shares of the healthcare conglomerate's stock valued at $32,000 after acquiring an additional 50 shares during the last quarter. Hedge funds and other institutional investors own 87.86% of the company's stock.
UnitedHealth Group Price Performance
The company has a market capitalization of $244.96 billion, a price-to-earnings ratio of 11.33, a PEG ratio of 1.39 and a beta of 0.45. The company's 50 day simple moving average is $300.91 and its 200-day simple moving average is $422.56. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.71.
About UnitedHealth Group
(
Get Free Report)
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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