UnitedHealth Group (NYSE:UNH) Stock Price Up 1.6% - Time to 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) was up 1.6% during trading on Monday . The stock traded as high as $242.25 and last traded at $241.58. Approximately 6,201,865 shares changed 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.

Analyst Upgrades and Downgrades

Several research analysts have commented on UNH shares. KeyCorp lowered their target price on UnitedHealth Group from $400.00 to $350.00 and set an "overweight" rating for the company in a research note on Wednesday, July 30th. Raymond James Financial downgraded UnitedHealth Group from a "strong-buy" rating to a "market perform" rating in a research note on Wednesday, May 14th. TD Securities reiterated a "hold" rating and issued a $308.00 target price (down from $520.00) on shares of UnitedHealth Group in a report on Monday, May 19th. Royal Bank Of Canada cut their price target on UnitedHealth Group from $355.00 to $286.00 and set an "outperform" rating on the stock in a report on Wednesday, July 30th. Finally, Oppenheimer cut their price target on UnitedHealth Group from $400.00 to $325.00 and set an "outperform" rating on the stock in a report on Wednesday, July 30th. Three research analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have issued a buy rating to the company. Based on data from MarketBeat, UnitedHealth Group has a consensus rating of "Hold" and a consensus target price of $371.67.

UnitedHealth Group Trading Up 1.0%

The firm has a 50 day simple moving average of $296.86 and a 200 day simple moving average of $414.69. 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 $217.84 billion, a P/E ratio of 10.40, a P/E/G ratio of 1.50 and a beta of 0.43.

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

UnitedHealth Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 24th. Stockholders of record on Monday, June 16th were paid a dividend of $2.21 per share. This represents a $8.84 annualized dividend and a dividend yield of 3.7%. This is a boost from UnitedHealth Group's previous quarterly dividend of $2.10. The ex-dividend date of this dividend was Monday, June 16th. UnitedHealth Group's payout ratio is presently 38.30%.

Insider Activity

In other news, CEO Patrick Hugh Conway sold 589 shares of the business's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $305.00, for a total transaction 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO John F. Rex purchased 17,175 shares of UnitedHealth Group stock in a transaction that occurred on Friday, May 16th. The stock was purchased at an average cost of $291.12 per share, for a total transaction of $4,999,986.00. Following the completion of the purchase, the chief financial officer owned 203,796 shares of the company's stock, valued at $59,329,091.52. This trade represents a 9.20% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 109,408 shares of company stock valued at $31,607,768. 0.28% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in shares of UnitedHealth Group by 6.6% in the first quarter. Vanguard Group Inc. now owns 90,729,585 shares of the healthcare conglomerate's stock worth $47,519,620,000 after buying an additional 5,583,343 shares during the period. Wellington Management Group LLP grew its position in shares of UnitedHealth Group by 10.6% during the first quarter. Wellington Management Group LLP now owns 25,847,940 shares of the healthcare conglomerate's stock worth $13,537,859,000 after purchasing an additional 2,486,839 shares in the last quarter. Capital International Investors grew its position in shares of UnitedHealth Group by 6.2% during the fourth quarter. Capital International Investors now owns 15,616,007 shares of the healthcare conglomerate's stock worth $7,899,905,000 after purchasing an additional 906,365 shares in the last quarter. Northern Trust Corp grew its holdings in UnitedHealth Group by 12.5% during the 4th quarter. Northern Trust Corp now owns 9,503,671 shares of the healthcare conglomerate's stock valued at $4,807,527,000 after buying an additional 1,058,488 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of UnitedHealth Group by 36.6% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,592,718 shares of the healthcare conglomerate's stock valued at $4,346,712,000 after acquiring an additional 2,301,010 shares during the last quarter. 87.86% of the stock is owned by 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.

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