UnitedHealth Group (NYSE:UNH) Trading Up 12.8% - Still a Buy?

Key Points

• UnitedHealth Group's stock surged 12.8% on recent trading, reaching a high of $306.18, with trading volume increasing by 173% compared to the average.
• Wall Street analysts have mixed opinions on the stock, with three sell ratings, seven hold ratings, and fifteen buy ratings, resulting in an average consensus target price of $366.52.
• The company announced a quarterly dividend of $2.21 per share, representing an annual yield of 2.9%, with a payout ratio of 38.30%.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report) shares rose 12.8% on Friday . The stock traded as high as $305.83 and last traded at $306.18. Approximately 33,713,594 shares changed hands during trading, an increase of 173% from the average daily volume of 12,342,854 shares. The stock had previously closed at $271.49.

Wall Street Analysts Forecast Growth

UNH has been the topic of several research reports. TD Cowen cut 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. KeyCorp dropped their target price on UnitedHealth Group from $400.00 to $350.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 30th. UBS Group reaffirmed a "buy" rating on shares of UnitedHealth Group in a report on Thursday, July 17th. Wells Fargo & Company dropped their price objective on shares of UnitedHealth Group from $306.00 to $267.00 and set an "overweight" rating on the stock in a report on Monday, August 4th. Finally, Oppenheimer dropped their price target on shares of UnitedHealth Group from $400.00 to $325.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 30th. Three analysts have rated the stock with a sell rating, seven have given a hold rating and fifteen have given a buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $366.52.

UnitedHealth Group Trading Up 14.0%

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 company has a market cap of $280.21 billion, a P/E ratio of 13.40, a P/E/G ratio of 1.75 and a beta of 0.43. The business's 50-day moving average price is $288.90 and its 200 day moving average price is $399.47.

UnitedHealth Group (NYSE:UNH - Get Free Report) last announced 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 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 business's quarterly revenue was up 12.9% on a year-over-year basis. During the same period in the previous year, the firm posted $6.80 EPS. As a group, analysts expect that UnitedHealth Group Incorporated will post 29.54 earnings per share for the current year.

UnitedHealth Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 23rd. Investors of record on Monday, September 15th will be given 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 dividend payout ratio is currently 38.30%.

Insider Activity at UnitedHealth Group

In other news, CEO Patrick Hugh Conway sold 589 shares of the stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $305.00, for a total value 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. This represents a 5.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.28% of the company's stock.

Hedge Funds Weigh In On UnitedHealth Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. LFA Lugano Financial Advisors SA bought a new stake in UnitedHealth Group in the second quarter worth approximately $25,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of UnitedHealth Group in the 4th quarter valued at $26,000. Bayforest Capital Ltd increased its stake in shares of 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 in the last quarter. Sagard Holdings Management Inc. bought a new stake in UnitedHealth Group in the second quarter valued at $29,000. Finally, Islay Capital Management LLC bought a new stake in UnitedHealth Group in the second quarter valued at $31,000. 87.86% of the stock is owned by institutional investors and hedge funds.

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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