Wells Fargo & Company Issues Pessimistic Forecast for UnitedHealth Group (NYSE:UNH) Stock Price

Key Points

• Wells Fargo & Company has lowered the price target for UnitedHealth Group from $306.00 to $267.00, suggesting a potential upside of 10.77% based on the current price.
• Recent ratings by analysts show a shift in sentiment, with three analystsseveral others
• Despite a 12.9% year-over-year revenue increase, UnitedHealth Group missed earnings expectations in its last quarterly report, posting $4.08 EPS against the consensus estimate of $4.45.

UnitedHealth Group (NYSE:UNH - Free Report) had its target price trimmed by Wells Fargo & Company from $306.00 to $267.00 in a report published on Monday morning,Benzinga reports. The brokerage currently has an overweight rating on the healthcare conglomerate's stock.

Other equities research analysts also recently issued reports about the stock. TD Securities reiterated a "hold" rating and issued a $308.00 price target (down from $520.00) on shares of UnitedHealth Group in a research report on Monday, May 19th. Robert W. Baird restated an "underperform" rating and issued a $198.00 price target (down previously from $312.00) on shares of UnitedHealth Group in a research report on Thursday, July 31st. Barclays reissued an "overweight" rating on shares of UnitedHealth Group in a report on Thursday, July 17th. Mizuho reduced their target price on UnitedHealth Group from $515.00 to $350.00 and set an "outperform" rating on the stock in a report on Friday, May 16th. Finally, Wolfe Research decreased their target price on shares of UnitedHealth Group from $501.00 to $390.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 20th. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and fifteen have assigned a buy rating to the company's stock. According to data from MarketBeat.com, UnitedHealth Group has a consensus rating of "Hold" and a consensus price target of $366.52.

UnitedHealth Group Stock Performance

NYSE UNH traded down $2.61 during trading on Monday, reaching $243.17. 7,413,077 shares of the company's stock were exchanged, compared to its average volume of 12,089,318. UnitedHealth Group has a fifty-two week low of $234.60 and a fifty-two week high of $630.73. The business has a 50 day moving average price of $293.86 and a 200-day moving average price of $410.54. 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 market capitalization of $220.59 billion, a P/E ratio of 10.55, a PEG ratio of 1.62 and a beta of 0.43.

UnitedHealth Group (NYSE:UNH - Get Free Report) last issued 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). UnitedHealth Group had a return on equity of 23.32% and a net margin of 5.04%. The firm had revenue of $111.62 billion for the quarter, compared to the consensus estimate of $111.75 billion. During the same quarter in the prior year, the firm earned $6.80 EPS. The company's revenue was up 12.9% on a year-over-year basis. Sell-side analysts forecast that UnitedHealth Group will post 29.54 earnings per share for the current fiscal year.

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. The ex-dividend date of this dividend was Monday, June 16th. This represents a $8.84 dividend on an annualized basis and a yield of 3.6%. This is an increase from UnitedHealth Group's previous quarterly dividend of $2.10. UnitedHealth Group's dividend payout ratio is presently 38.30%.

Insider Buying and Selling

In other UnitedHealth Group news, CFO John F. Rex bought 17,175 shares of the firm's stock in a transaction dated Friday, May 16th. The stock was purchased at an average cost of $291.12 per share, with a total value of $4,999,986.00. Following the transaction, the chief financial officer directly owned 203,796 shares in the company, valued at $59,329,091.52. This trade represents a 9.20% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Stephen J. Hemsley bought 86,700 shares of UnitedHealth Group stock in a transaction dated Friday, May 16th. The shares were bought at an average cost of $288.57 per share, with a total value of $25,019,019.00. Following the completion of the transaction, the chief executive officer directly owned 679,493 shares in the company, valued at approximately $196,081,295.01. This trade represents a 14.63% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders have purchased 109,408 shares of company stock valued at $31,607,768. 0.28% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in UnitedHealth Group by 6.6% during the 1st quarter. Vanguard Group Inc. now owns 90,729,585 shares of the healthcare conglomerate's stock worth $47,519,620,000 after acquiring an additional 5,583,343 shares during the period. Wellington Management Group LLP grew its position in UnitedHealth Group by 10.6% during the first quarter. Wellington Management Group LLP now owns 25,847,940 shares of the healthcare conglomerate's stock worth $13,537,859,000 after buying an additional 2,486,839 shares in the last quarter. Capital International Investors boosted its position in shares of UnitedHealth Group by 6.2% during the 4th quarter. Capital International Investors now owns 15,616,007 shares of the healthcare conglomerate's stock valued at $7,899,905,000 after acquiring an additional 906,365 shares during the last quarter. Northern Trust Corp lifted its position in UnitedHealth Group by 12.5% during the fourth quarter. Northern Trust Corp now owns 9,503,671 shares of the healthcare conglomerate's stock valued at $4,807,527,000 after purchasing an additional 1,058,488 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in UnitedHealth Group by 36.6% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,592,718 shares of the healthcare conglomerate's stock valued at $4,346,712,000 after acquiring an additional 2,301,010 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.