UnitedHealth Group (NYSE:UNH) Trading Up 5% After Strong Earnings

UnitedHealth Group Incorporated (NYSE:UNH)’s share price traded up 5% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $479.75 and last traded at $467.80. 5,622,850 shares were traded during trading, an increase of 30% from the average session volume of 4,314,540 shares. The stock had previously closed at $445.63.

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

UnitedHealth Group Dividend Announcement

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

Analyst Ratings Changes

Several equities research analysts have recently weighed in on UNH shares. Morgan Stanley decreased their price target on UnitedHealth Group from $618.00 to $584.00 and set an “overweight” rating on the stock in a research report on Friday, April 5th. Erste Group Bank reiterated a “hold” rating on shares of UnitedHealth Group in a research report on Wednesday, March 13th. TD Cowen decreased their price objective on shares of UnitedHealth Group from $607.00 to $546.00 and set a “buy” rating on the stock in a research report on Wednesday, April 10th. Stephens restated an “overweight” rating and issued a $605.00 price objective on shares of UnitedHealth Group in a research report on Thursday, February 8th. Finally, HSBC upgraded shares of UnitedHealth Group from a “reduce” rating to a “hold” rating and set a $460.00 price objective on the stock in a research report on Thursday, April 4th. Three equities research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $573.80.

Insider Activity

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

Hedge Funds Weigh In On UnitedHealth Group

A number of institutional investors have recently added to or reduced their stakes in UNH. Moneta Group Investment Advisors LLC raised its holdings in UnitedHealth Group by 100,076.4% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 11,823,820 shares of the healthcare conglomerate’s stock worth $6,268,753,000 after purchasing an additional 11,812,017 shares in the last quarter. Norges Bank bought a new position in shares of UnitedHealth Group during the fourth quarter valued at $5,802,231,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of UnitedHealth Group by 1,682.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,691,542 shares of the healthcare conglomerate’s stock valued at $1,372,606,000 after acquiring an additional 2,540,538 shares in the last quarter. International Assets Investment Management LLC increased its holdings in shares of UnitedHealth Group by 53,573.1% during the fourth quarter. International Assets Investment Management LLC now owns 2,352,490 shares of the healthcare conglomerate’s stock valued at $1,238,515,000 after acquiring an additional 2,348,107 shares in the last quarter. Finally, Barclays PLC increased its holdings in shares of UnitedHealth Group by 143.4% during the second quarter. Barclays PLC now owns 3,494,100 shares of the healthcare conglomerate’s stock valued at $1,679,401,000 after acquiring an additional 2,058,829 shares in the last quarter. Institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Price Performance

The firm has a fifty day moving average price of $490.31 and a two-hundred day moving average price of $515.63. The stock has a market capitalization of $432.51 billion, a P/E ratio of 19.68, a P/E/G ratio of 1.20 and a beta of 0.54. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.62.

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.