UnitedHealth Group (NYSE:UNH) Shares Up 5.2% on Strong Earnings

UnitedHealth Group Incorporated (NYSE:UNH)’s share price traded up 5.2% on Wednesday following a better than expected earnings announcement. The stock traded as high as $479.75 and last traded at $468.89. 11,816,517 shares changed hands during trading, an increase of 178% from the average session volume of 4,248,641 shares. The stock had previously closed at $445.63.

The healthcare conglomerate reported $6.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.63 by $0.28. UnitedHealth Group had a net margin of 6.02% and a return on equity of 26.39%. The company had revenue of $99.80 billion for the quarter, compared to the consensus estimate of $99.23 billion. During the same quarter in the previous year, the company earned $6.26 EPS. UnitedHealth Group’s quarterly revenue was up 8.6% compared to the same quarter last year.

UnitedHealth Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 19th. Shareholders of record on Monday, March 11th were paid a dividend of $1.88 per share. The ex-dividend date was Friday, March 8th. This represents a $7.52 dividend on an annualized basis and a yield of 1.57%. UnitedHealth Group’s dividend payout ratio (DPR) is presently 31.54%.

Analyst Upgrades and Downgrades

UNH has been the subject of a number of recent research reports. Morgan Stanley decreased their price target on shares of UnitedHealth Group from $618.00 to $584.00 and set an “overweight” rating for the company in a research note on Friday, April 5th. Piper Sandler upped their target price on shares of UnitedHealth Group from $566.00 to $571.00 and gave the stock an “overweight” rating in a research note on Wednesday. Cantor Fitzgerald reiterated an “overweight” rating and issued a $591.00 target price on shares of UnitedHealth Group in a research note on Wednesday, April 10th. HSBC upgraded shares of UnitedHealth Group from a “reduce” rating to a “hold” rating and set a $460.00 target price for the company in a research note on Thursday, April 4th. Finally, Oppenheimer reiterated an “outperform” rating and issued a $610.00 target price on shares of UnitedHealth Group in a research note on Wednesday, January 17th. Three analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, UnitedHealth Group currently has an average rating of “Moderate Buy” and a consensus price target of $569.68.

Insider Buying and Selling at UnitedHealth Group

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

Institutional Investors Weigh In On UnitedHealth Group

A number of institutional investors and hedge funds have recently modified their holdings of UNH. Ascension Capital Advisors Inc. purchased a new stake in UnitedHealth Group in the third quarter valued at approximately $216,000. Bellecapital International Ltd. raised its stake in UnitedHealth Group by 1.4% in the fourth quarter. Bellecapital International Ltd. now owns 13,823 shares of the healthcare conglomerate’s stock valued at $7,277,000 after purchasing an additional 193 shares in the last quarter. Great Valley Advisor Group Inc. grew its position in UnitedHealth Group by 5.8% during the third quarter. Great Valley Advisor Group Inc. now owns 34,297 shares of the healthcare conglomerate’s stock valued at $17,292,000 after acquiring an additional 1,884 shares during the last quarter. Rise Advisors LLC grew its position in UnitedHealth Group by 326.0% during the fourth quarter. Rise Advisors LLC now owns 213 shares of the healthcare conglomerate’s stock valued at $112,000 after acquiring an additional 163 shares during the last quarter. Finally, Gradient Investments LLC grew its position in UnitedHealth Group by 6.3% during the fourth quarter. Gradient Investments LLC now owns 84,278 shares of the healthcare conglomerate’s stock valued at $44,370,000 after acquiring an additional 5,023 shares during the last quarter. 87.86% of the stock is owned by hedge funds and other institutional investors.

UnitedHealth Group Price Performance

The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.62. The business’s 50-day simple moving average is $489.51 and its 200 day simple moving average is $515.38. The firm has a market capitalization of $441.60 billion, a P/E ratio of 20.09, a PEG ratio of 1.22 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.