UnitedHealth Group (NYSE:UNH) Trading Up 2.1% - Still a Buy?

Key Points

• UnitedHealth Group's shares increased by 2.1% during mid-day trading, reaching a price of $284.38, though trading volume was down by 45% compared to the average.
• Several analysts have adjusted their price targets for UnitedHealth Group, with estimates ranging from $270.00 to $400.00, resulting in a consensus rating of "Moderate Buy."
• The company recently increased its quarterly dividend to $2.21 per share, representing a 3.12% yield and a payout ratio of 37.02%.
• Insider trading activity includes CFO John F. Rex purchasing 17,175 shares valued at nearly $5 million, indicating confidence in the company's prospects.

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report) shares traded up 2.1% during mid-day trading on Friday . The stock traded as high as $285.88 and last traded at $284.38. 6,189,858 shares changed hands during mid-day trading, a decline of 45% from the average session volume of 11,282,132 shares. The stock had previously closed at $278.58.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. TD Securities reissued a "hold" rating and issued a $308.00 target price (down from $520.00) on shares of UnitedHealth Group in a research report on Monday, May 19th. Wells Fargo & Company cut their price target on shares of UnitedHealth Group from $351.00 to $306.00 and set an "overweight" rating on the stock in a report on Friday. Mizuho dropped 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 note on Friday, May 16th. KeyCorp dropped their price objective on shares of UnitedHealth Group from $450.00 to $400.00 and set an "overweight" rating on the stock in a research note on Monday, June 2nd. Finally, HSBC restated a "reduce" rating and issued a $270.00 price target (down previously from $490.00) on shares of UnitedHealth Group in a research note on Wednesday, May 21st. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and fifteen have given a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $392.29.

UnitedHealth Group Trading Up 1.6%

The company has a fifty day simple moving average of $301.79 and a 200-day simple moving average of $427.21. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.71. The stock has a market cap of $256.88 billion, a price-to-earnings ratio of 11.86, a P/E/G ratio of 1.45 and a beta of 0.45.

UnitedHealth Group Increases Dividend

The business also recently disclosed 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 annualized dividend and a yield of 3.12%. The ex-dividend date was Monday, June 16th. This is an increase from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's payout ratio is presently 37.02%.

Insider Activity at UnitedHealth Group

In other UnitedHealth Group news, CFO John F. Rex bought 17,175 shares of the stock in a transaction on Friday, May 16th. The shares were bought at an average price of $291.12 per share, with a total value of $4,999,986.00. Following the purchase, the chief financial officer directly owned 203,796 shares in the company, valued at $59,329,091.52. The trade was a 9.20% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Patrick Hugh Conway sold 589 shares of UnitedHealth Group 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 transaction, the chief executive officer directly owned 10,398 shares in the company, 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. Over the last quarter, insiders have bought 109,408 shares of company stock worth $31,607,768. Company insiders own 0.28% of the company's stock.

Institutional Investors Weigh In On UnitedHealth Group

Several large investors have recently made changes to their positions in UNH. Financial Management Professionals Inc. boosted its position in UnitedHealth Group by 0.8% during the first quarter. Financial Management Professionals Inc. now owns 2,224 shares of the healthcare conglomerate's stock worth $1,165,000 after purchasing an additional 17 shares during the period. Global Wealth Strategies & Associates boosted its position in UnitedHealth Group by 28.6% during the first quarter. Global Wealth Strategies & Associates now owns 90 shares of the healthcare conglomerate's stock worth $47,000 after purchasing an additional 20 shares during the period. Kolinsky Wealth Management LLC boosted its position in UnitedHealth Group by 1.0% during the fourth quarter. Kolinsky Wealth Management LLC now owns 2,135 shares of the healthcare conglomerate's stock worth $1,080,000 after purchasing an additional 21 shares during the period. Retirement Planning Group LLC boosted its position in UnitedHealth Group by 5.1% during the first quarter. Retirement Planning Group LLC now owns 430 shares of the healthcare conglomerate's stock worth $225,000 after purchasing an additional 21 shares during the period. Finally, Net Worth Advisory Group lifted its holdings in shares of UnitedHealth Group by 0.6% during the first quarter. Net Worth Advisory Group now owns 3,642 shares of the healthcare conglomerate's stock worth $1,907,000 after buying an additional 21 shares during the last quarter. 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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