UnitedHealth Group (NYSE:UNH) Trading 12.8% Higher - Here's Why

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%.

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

Analyst Ratings Changes

Several equities analysts have recently commented on UNH shares. HSBC reaffirmed a "reduce" rating and issued a $270.00 target price (down previously from $490.00) on shares of UnitedHealth Group in a research report on Wednesday, May 21st. Raymond James Financial downgraded UnitedHealth Group from a "strong-buy" rating to a "market perform" rating in a report on Wednesday, May 14th. Royal Bank Of Canada decreased their target price on shares of UnitedHealth Group from $355.00 to $286.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 30th. Robert W. Baird reiterated an "underperform" rating and issued a $198.00 price target (down from $312.00) on shares of UnitedHealth Group in a research note on Thursday, July 31st. Finally, Wolfe Research cut their target price on UnitedHealth Group from $501.00 to $390.00 and set an "outperform" rating for the company in a research report on Tuesday, May 20th. Fifteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $367.71.

UnitedHealth Group Trading Down 1.5%

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 stock has a market capitalization of $275.12 billion, a PE ratio of 13.16, a price-to-earnings-growth ratio of 1.99 and a beta of 0.43. The firm 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 EPS for the quarter, missing the consensus estimate of $4.45 by ($0.37). The firm had revenue of $111.62 billion during the quarter, compared to analysts' expectations of $111.75 billion. UnitedHealth Group had a net margin of 5.04% and a return on equity of 23.32%. UnitedHealth Group's revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $6.80 EPS. UnitedHealth Group has set its FY 2025 guidance at 16.000- EPS. As a group, equities analysts forecast that UnitedHealth Group Incorporated will post 29.54 EPS for the current fiscal year.

UnitedHealth Group Dividend Announcement

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

Insider Transactions at UnitedHealth Group

In other news, CEO Patrick Hugh Conway sold 589 shares of the stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $305.00, for a total value of $179,645.00. Following the sale, the chief executive officer directly owned 10,398 shares of the company's stock, valued at approximately $3,171,390. This represents a 5.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.28% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. LFA Lugano Financial Advisors SA bought a new stake in UnitedHealth Group during the second quarter worth about $25,000. Marshall & Sterling Wealth Advisors Inc. bought a new position in UnitedHealth Group during the fourth quarter valued at approximately $26,000. Bayforest Capital Ltd lifted its holdings 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 worth $29,000 after acquiring an additional 48 shares during the last quarter. Sagard Holdings Management Inc. bought a new position in shares of UnitedHealth Group during the 2nd quarter valued at $29,000. Finally, Islay Capital Management LLC purchased a new stake in UnitedHealth Group during the second quarter valued at about $31,000. Hedge funds and other 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.