UnitedHealth Group (NYSE:UNH) Trading Up 1.3% - Should You Buy?

Key Points

• UnitedHealth Group's stock increased by 1.3% during trading on Monday, reaching a last traded price of $254.07, despite a significant decline in trading volume compared to the average.
• Several research analysts have adjusted their price targets for UnitedHealth Group, with estimates ranging from $198.00 to $362.00, and a consensus rating of "Hold" among analysts.
• The company recently announced an increase in its quarterly dividend to $2.21 per share, reflecting a commitment to returning value to shareholders despite its fluctuating earnings reports.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report)'s share price was up 1.3% during mid-day trading on Monday . The company traded as high as $258.40 and last traded at $254.07. Approximately 4,342,615 shares changed hands during trading, a decline of 64% from the average daily volume of 12,045,063 shares. The stock had previously closed at $250.89.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on UNH shares. TD Securities reiterated a "hold" rating and set a $308.00 target price (down previously from $520.00) on shares of UnitedHealth Group in a research report on Monday, May 19th. Deutsche Bank Aktiengesellschaft dropped their target price on shares of UnitedHealth Group from $521.00 to $362.00 and set a "buy" rating on the stock in a research report on Wednesday, May 14th. Wells Fargo & Company decreased their price target on shares of UnitedHealth Group from $306.00 to $267.00 and set an "overweight" rating for the company in a research note on Monday, August 4th. Oppenheimer decreased their price target on shares of UnitedHealth Group from $400.00 to $325.00 and set an "outperform" rating for the company in a research note on Wednesday, July 30th. Finally, Robert W. Baird restated an "underperform" rating and set a $198.00 price target (down previously from $312.00) on shares of UnitedHealth Group in a research note on Thursday, July 31st. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and fifteen have issued a buy rating to the stock. According to data from MarketBeat, UnitedHealth Group currently has a consensus rating of "Hold" and a consensus target price of $366.52.

UnitedHealth Group Stock Performance

The stock has a market capitalization of $229.14 billion, a PE ratio of 10.96, a P/E/G ratio of 1.62 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 business's fifty day moving average price is $291.78 and its 200-day moving average price is $405.18.

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 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% on a year-over-year basis. During the same quarter last year, the company posted $6.80 earnings per share. As a group, equities research analysts expect that UnitedHealth Group Incorporated will post 29.54 EPS for the current year.

UnitedHealth Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 24th. Shareholders of record on Monday, June 16th were given a dividend of $2.21 per share. This is an increase from UnitedHealth Group's previous quarterly dividend of $2.10. This represents a $8.84 annualized dividend and a yield of 3.5%. The ex-dividend date of this dividend was Monday, June 16th. UnitedHealth Group's payout ratio is 38.30%.

Insider Buying and Selling at UnitedHealth Group

In other UnitedHealth Group news, CFO John F. Rex bought 17,175 shares of the firm's stock in a transaction on Friday, May 16th. The stock was acquired at an average price of $291.12 per share, with a total value of $4,999,986.00. Following the transaction, the chief financial officer owned 203,796 shares in the company, valued at $59,329,091.52. This represents a 9.20% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Patrick Hugh Conway sold 589 shares of the business's stock in a transaction dated 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 of the company's stock, valued at approximately $3,171,390. This trade represents a 5.36% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have bought 109,408 shares of company stock valued at $31,607,768. Company insiders own 0.28% of the company's stock.

Hedge Funds Weigh In On UnitedHealth Group

Hedge funds have recently bought and sold shares of the business. Marshall & Sterling Wealth Advisors Inc. bought a new position in shares of UnitedHealth Group during the 4th quarter valued at approximately $26,000. Bayforest Capital Ltd grew its stake in shares of UnitedHealth Group by 685.7% during 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 during the period. Clal Insurance Enterprises Holdings Ltd grew its stake in shares of UnitedHealth Group by 416.7% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 62 shares of the healthcare conglomerate's stock valued at $32,000 after acquiring an additional 50 shares during the period. IAG Wealth Partners LLC bought a new position in shares of UnitedHealth Group during the 1st quarter valued at approximately $42,000. Finally, LFA Lugano Financial Advisors SA bought a new position in shares of UnitedHealth Group during the 2nd quarter valued at approximately $25,000. Hedge funds and other institutional investors own 87.86% of the company's stock.

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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