UnitedHealth Group (NYSE:UNH) Trading Up 1.6% - Still a Buy?

Key Points

• UnitedHealth Group's stock increased by 1.6% to close at $241.58, although trading volumes were down considerably, indicating potential hesitance among investors.
• Analysts have revised their price targets for UnitedHealth Group significantly, with KeyCorp dropping their target from $400 to $350, reflecting a cautious outlook amidst varied ratings.
• The company recently announced a quarterly dividend increase to $2.21 per share, resulting in an annualized yield of 3.7%, showcasing a commitment to returning value to shareholders despite mixed earnings results.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report) shares rose 1.6% on Monday . The company traded as high as $242.25 and last traded at $241.58. Approximately 6,201,865 shares traded hands during trading, a decline of 48% from the average daily volume of 11,955,976 shares. The stock had previously closed at $237.77.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on UNH. Piper Sandler reduced their price objective on shares of UnitedHealth Group from $353.00 to $317.00 and set an "overweight" rating for the company in a research note on Wednesday, July 30th. Barclays restated an "overweight" rating on shares of UnitedHealth Group in a research report on Thursday, July 17th. KeyCorp lowered their price objective on UnitedHealth Group from $400.00 to $350.00 and set an "overweight" rating for the company in a research report on Wednesday, July 30th. Truist Financial cut their price target on shares of UnitedHealth Group from $360.00 to $345.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. Finally, 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. Three equities 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. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $366.52.

UnitedHealth Group Stock Down 1.1%

The company's 50 day moving average is $293.86 and its 200 day moving average is $410.54. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.73. The company has a market cap of $220.52 billion, a PE ratio of 10.55, a P/E/G ratio of 1.62 and a beta of 0.43.

UnitedHealth Group (NYSE:UNH - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share for the quarter, missing the consensus estimate of $4.45 by ($0.37). UnitedHealth Group had a net margin of 5.04% and a return on equity of 23.32%. The firm had revenue of $111.62 billion for the quarter, compared to analysts' expectations of $111.75 billion. During the same quarter in the previous year, the firm posted $6.80 EPS. The firm's revenue for the quarter was up 12.9% compared to the same quarter last year. As a group, analysts predict that UnitedHealth Group Incorporated will post 29.54 earnings per share for the current fiscal year.

UnitedHealth Group Increases Dividend

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

Insider Buying and Selling

In other news, CFO John F. Rex acquired 17,175 shares of the business's stock in a transaction on Friday, May 16th. The stock was bought at an average cost of $291.12 per share, for a total transaction of $4,999,986.00. Following the purchase, the chief financial officer owned 203,796 shares in the company, valued at approximately $59,329,091.52. This represents a 9.20% 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 Stephen J. Hemsley purchased 86,700 shares of the company's stock in a transaction that occurred on Friday, May 16th. The shares were purchased at an average price of $288.57 per share, with a total value of $25,019,019.00. Following the completion of the transaction, the chief executive officer directly owned 679,493 shares of the company's stock, valued at $196,081,295.01. This represents a 14.63% increase in their position. The disclosure for this purchase can be found here. Insiders have bought 109,408 shares of company stock worth $31,607,768 in the last 90 days. 0.28% of the stock is owned by insiders.

Institutional Trading of UnitedHealth Group

Several large investors have recently added to or reduced their stakes in the stock. LFA Lugano Financial Advisors SA purchased a new position in shares of UnitedHealth Group during the 2nd quarter worth approximately $25,000. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in UnitedHealth Group in the fourth quarter valued at approximately $26,000. Bayforest Capital Ltd grew its holdings in shares of UnitedHealth Group by 685.7% during the first quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate's stock worth $29,000 after buying an additional 48 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new position in UnitedHealth Group during the 4th quarter worth $30,000. Finally, Clal Insurance Enterprises Holdings Ltd grew its stake 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 purchasing an additional 50 shares during the period. 87.86% of the stock is currently owned by hedge funds and other institutional investors.

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.