UnitedHealth Group (NYSE:UNH) Shares Gap Up After Earnings Beat

UnitedHealth Group Incorporated (NYSE:UNH) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $445.63, but opened at $476.77. UnitedHealth Group shares last traded at $475.48, with a volume of 3,304,098 shares.

The healthcare conglomerate reported $6.91 earnings per share for the quarter, topping the consensus estimate of $6.54 by $0.37. The company had revenue of $99.80 billion for the quarter, compared to analysts’ expectations of $99.23 billion. UnitedHealth Group had a return on equity of 26.39% and a net margin of 6.02%. The firm’s revenue for the quarter was up 8.6% on a year-over-year basis. During the same period in the prior year, the firm earned $6.26 earnings per share.

UnitedHealth Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 19th. Stockholders of record on Monday, March 11th were paid a $1.88 dividend. The ex-dividend date was Friday, March 8th. This represents a $7.52 dividend on an annualized basis and a dividend yield of 1.60%. UnitedHealth Group’s dividend payout ratio is currently 31.54%.

Analysts Set New Price Targets

UNH has been the topic of a number of recent research reports. Piper Sandler cut their target price on UnitedHealth Group from $584.00 to $581.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 17th. Barclays began coverage on UnitedHealth Group in a report on Wednesday, March 6th. They issued an “overweight” rating and a $551.00 price objective for the company. Morgan Stanley reduced their price objective on UnitedHealth Group from $618.00 to $584.00 and set an “overweight” rating for the company in a report on Friday, April 5th. Bank of America reiterated a “buy” rating and issued a $675.00 price objective on shares of UnitedHealth Group in a report on Thursday, March 7th. Finally, Oppenheimer reiterated an “outperform” rating and issued a $610.00 price objective on shares of UnitedHealth Group in a report on Wednesday, January 17th. Three research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $573.80.

Insider Activity

In other news, EVP Erin Mcsweeney sold 1,236 shares of UnitedHealth Group stock in a transaction dated Friday, March 8th. The stock was sold at an average price of $483.48, for a total transaction of $597,581.28. Following the transaction, the executive vice president now directly owns 9,364 shares of the company’s stock, valued at approximately $4,527,306.72. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In related news, EVP Erin Mcsweeney sold 1,236 shares of the business’s stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $483.48, for a total value of $597,581.28. Following the transaction, the executive vice president now directly owns 9,364 shares of the company’s stock, valued at approximately $4,527,306.72. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CAO Thomas E. Roos sold 858 shares of the business’s stock in a transaction that occurred on Friday, February 23rd. The stock was sold at an average price of $525.79, for a total value of $451,127.82. Following the completion of the transaction, the chief accounting officer now directly owns 32,289 shares in the company, valued at $16,977,233.31. The disclosure for this sale can be found here. Insiders own 0.35% of the company’s stock.

Institutional Trading of UnitedHealth Group

Large investors have recently added to or reduced their stakes in the company. Kraft Davis & Associates LLC increased its position in shares of UnitedHealth Group by 3.4% during the 3rd quarter. Kraft Davis & Associates LLC now owns 577 shares of the healthcare conglomerate’s stock valued at $294,000 after purchasing an additional 19 shares during the last quarter. Iron Horse Wealth Management LLC boosted its holdings in UnitedHealth Group by 1.6% during the 3rd quarter. Iron Horse Wealth Management LLC now owns 1,217 shares of the healthcare conglomerate’s stock valued at $614,000 after acquiring an additional 19 shares during the period. Secure Asset Management LLC boosted its holdings in UnitedHealth Group by 0.8% during the 3rd quarter. Secure Asset Management LLC now owns 2,456 shares of the healthcare conglomerate’s stock valued at $1,238,000 after acquiring an additional 19 shares during the period. Bensler LLC boosted its holdings in UnitedHealth Group by 0.3% during the 3rd quarter. Bensler LLC now owns 7,293 shares of the healthcare conglomerate’s stock valued at $3,677,000 after acquiring an additional 19 shares during the period. Finally, Texas Capital Bancshares Inc TX boosted its holdings in UnitedHealth Group by 1.1% during the 3rd quarter. Texas Capital Bancshares Inc TX now owns 1,695 shares of the healthcare conglomerate’s stock valued at $855,000 after acquiring an additional 19 shares during the period. Institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Trading Up 5.3 %

The stock has a fifty day moving average of $490.31 and a 200-day moving average of $515.63. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.79 and a current ratio of 0.79. The company has a market cap of $432.51 billion, a PE ratio of 19.68, a PEG ratio of 1.20 and a beta of 0.54.

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.