UnitedHealth Group (NYSE:UNH) Stock Price Down 1.7% - What's Next?

Key Points

• UnitedHealth Group's share price declined by 1.7%, closing at $246.86 during Wednesday's trading session, with a significant drop in trading volume.
• Analysts have recently downgraded UnitedHealth, with a consensus rating of "Hold" and a price target adjustment down to $371.67, reflecting concerns about its stock performance.
• The company reported $4.08 EPS for the last quarter, missing expectations by $0.37, while revenue of $111.62 billion was slightly below forecasts.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report) shares dropped 1.7% on Wednesday . The company traded as low as $246.28 and last traded at $246.86. Approximately 5,452,228 shares changed hands during mid-day trading, a decline of 55% from the average daily volume of 12,067,847 shares. The stock had previously closed at $251.00.

Analyst Ratings Changes

UNH has been the topic of several recent analyst reports. Mizuho decreased their price objective on shares of UnitedHealth Group from $515.00 to $350.00 and set an "outperform" rating on the stock in a research report on Friday, May 16th. UBS Group restated a "buy" rating on shares of UnitedHealth Group in a research report on Thursday, July 17th. Piper Sandler decreased their price target on shares of UnitedHealth Group from $353.00 to $317.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 30th. Raymond James Financial lowered UnitedHealth Group from a "strong-buy" rating to a "market perform" rating in a report on Wednesday, May 14th. Finally, Wolfe Research decreased their price objective on shares of UnitedHealth Group from $501.00 to $390.00 and set an "outperform" rating for the company in a research note on Tuesday, May 20th. Three investment analysts have rated the stock with a sell rating, seven have given a hold rating and fifteen have assigned a buy rating to the company. Based on data from MarketBeat.com, UnitedHealth Group currently has an average rating of "Hold" and a consensus price target of $366.52.

UnitedHealth Group Stock Down 1.0%

The stock's 50-day moving average price is $293.86 and its 200-day moving average price is $410.54. The stock has a market cap of $220.76 billion, a price-to-earnings ratio of 10.55, a P/E/G ratio of 1.62 and a beta of 0.43. 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 (NYSE:UNH - Get Free Report) last posted its earnings results on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.45 by ($0.37). UnitedHealth Group had a return on equity of 23.32% and a net margin of 5.04%. The firm had revenue of $111.62 billion during the quarter, compared to the consensus estimate of $111.75 billion. During the same quarter in the previous year, the company earned $6.80 EPS. The business's revenue was up 12.9% compared to the same quarter last year. On average, sell-side analysts expect that UnitedHealth Group Incorporated will post 29.54 earnings per share for the current year.

UnitedHealth Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 24th. Shareholders of record on Monday, June 16th were issued a dividend of $2.21 per share. This represents a $8.84 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend was Monday, June 16th. This is a positive change from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's payout ratio is presently 38.30%.

Insider Transactions at UnitedHealth Group

In related news, Director Timothy Patrick Flynn bought 1,533 shares of the business's stock in a transaction that occurred on Wednesday, May 14th. The stock was bought at an average cost of $320.80 per share, for a total transaction of $491,786.40. Following the completion of the transaction, the director owned 6,033 shares of the company's stock, valued at approximately $1,935,386.40. The trade was a 34.07% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Stephen J. Hemsley acquired 86,700 shares of the business's stock in a transaction dated Friday, May 16th. The stock was acquired at an average cost of $288.57 per share, with a total value of $25,019,019.00. Following the purchase, the chief executive officer directly owned 679,493 shares in the company, valued at $196,081,295.01. This represents a 14.63% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders purchased 109,408 shares of company stock valued at $31,607,768. 0.28% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On UnitedHealth Group

Large investors have recently added to or reduced their stakes in the company. LFA Lugano Financial Advisors SA bought a new position in UnitedHealth Group in the second quarter worth about $25,000. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in shares of UnitedHealth Group during the fourth quarter valued at approximately $26,000. Bayforest Capital Ltd raised 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 valued at $29,000 after purchasing an additional 48 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new position in shares of UnitedHealth Group in the fourth quarter worth approximately $30,000. Finally, Clal Insurance Enterprises Holdings Ltd lifted its holdings in UnitedHealth Group by 416.7% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 62 shares of the healthcare conglomerate's stock valued at $32,000 after purchasing an additional 50 shares in the last quarter. Institutional investors own 87.86% of the company's stock.

About UnitedHealth Group

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.