UnitedHealth Group (NYSE:UNH) Trading Down 2.3% - Here's Why

Key Points

• UnitedHealth Group's share price fell by 2.3%, trading at $301.26, with a 30% decrease in trading volume compared to the average daily volume.
• Analysts have mixed ratings on UnitedHealth, with several adjusting price targets; for example, Bank of America raised its target to $325.00, while Wells Fargo lowered theirs to $267.00.
• The company recently announced a quarterly dividend of $2.21 per share, reflecting a 2.9% dividend yield, with a payout ratio of 38.30%.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report)'s share price dropped 2.3% during mid-day trading on Tuesday . The stock traded as low as $301.25 and last traded at $301.26. Approximately 8,896,448 shares changed hands during trading, a decline of 30% from the average daily volume of 12,729,303 shares. The stock had previously closed at $308.49.

Wall Street Analysts Forecast Growth

UNH has been the subject of several research reports. Bank of America lifted their price target on UnitedHealth Group from $290.00 to $325.00 and gave the company a "neutral" rating in a report on Monday. Raymond James Financial cut shares of UnitedHealth Group from a "strong-buy" rating to a "market perform" rating in a research note on Wednesday, May 14th. Wells Fargo & Company dropped their price target on UnitedHealth Group from $306.00 to $267.00 and set an "overweight" rating on the stock in a research report on Monday, August 4th. TD Cowen downgraded UnitedHealth Group from a "buy" rating to a "hold" rating and set a $308.00 price target on the stock. in a research report on Monday, May 19th. Finally, JPMorgan Chase & Co. lowered their price objective on UnitedHealth Group from $418.00 to $310.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 6th. Fifteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $367.71.

UnitedHealth Group Stock Performance

The company has a market cap of $275.62 billion, a price-to-earnings ratio of 13.20, a price-to-earnings-growth ratio of 1.96 and a beta of 0.43. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.85 and a quick ratio of 0.85. The stock has a 50-day moving average price of $289.03 and a 200 day moving average price of $394.17.

UnitedHealth Group (NYSE:UNH - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.45 by ($0.37). The firm had revenue of $111.62 billion for 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 quarterly revenue was up 12.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $6.80 earnings per share. UnitedHealth Group has set its FY 2025 guidance at 16.000- EPS. As a group, analysts anticipate that UnitedHealth Group Incorporated will post 29.54 EPS for the current fiscal year.

UnitedHealth Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Monday, September 15th will be paid a dividend of $2.21 per share. This represents a $8.84 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, September 15th. UnitedHealth Group's payout ratio is currently 38.30%.

Insider Activity at UnitedHealth Group

In other news, CEO Patrick Hugh Conway sold 589 shares of UnitedHealth Group 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 completion of the transaction, the chief executive officer directly owned 10,398 shares in the company, valued at approximately $3,171,390. The trade was a 5.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.28% of the company's stock.

Institutional Trading of UnitedHealth Group

Several hedge funds have recently added to or reduced their stakes in the company. Citizens National Bank Trust Department raised its holdings in UnitedHealth Group by 1.0% in the 1st quarter. Citizens National Bank Trust Department now owns 17,886 shares of the healthcare conglomerate's stock valued at $9,368,000 after acquiring an additional 170 shares in the last quarter. Fort Washington Investment Advisors Inc. OH boosted its stake in UnitedHealth Group by 0.3% in the first quarter. Fort Washington Investment Advisors Inc. OH now owns 530,103 shares of the healthcare conglomerate's stock valued at $277,641,000 after buying an additional 1,465 shares in the last quarter. Sherbrooke Park Advisers LLC acquired a new stake in UnitedHealth Group in the fourth quarter valued at about $515,000. Full Sail Capital LLC grew its position in UnitedHealth Group by 2.1% during the 4th quarter. Full Sail Capital LLC now owns 1,612 shares of the healthcare conglomerate's stock worth $815,000 after acquiring an additional 33 shares during the last quarter. Finally, Soros Fund Management LLC bought a new stake in UnitedHealth Group during the 4th quarter worth $39,413,000. 87.86% of the stock is owned by institutional investors and hedge funds.

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.

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