UnitedHealth Group (NYSE:UNH) Shares Gap Down After Earnings Miss

UnitedHealth Group Incorporated (NYSE:UNH)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $585.04, but opened at $481.95. UnitedHealth Group shares last traded at $466.92, with a volume of 7,128,580 shares traded.

The healthcare conglomerate reported $7.20 EPS for the quarter, missing the consensus estimate of $7.29 by ($0.09). The business had revenue of $109.58 billion during the quarter, compared to the consensus estimate of $111.56 billion. UnitedHealth Group had a return on equity of 26.69% and a net margin of 3.60%. During the same period in the prior year, the firm earned $6.91 earnings per share.

UnitedHealth Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 18th. Shareholders of record on Monday, March 10th were issued a dividend of $2.10 per share. This represents a $8.40 dividend on an annualized basis and a yield of 1.84%. The ex-dividend date of this dividend was Monday, March 10th. UnitedHealth Group’s payout ratio is 54.19%.

Analyst Upgrades and Downgrades

Several analysts recently commented on UNH shares. Piper Sandler decreased their price target on UnitedHealth Group from $605.00 to $600.00 and set an “overweight” rating on the stock in a research note on Thursday, January 2nd. StockNews.com upgraded shares of UnitedHealth Group from a “hold” rating to a “buy” rating in a research report on Thursday, January 23rd. KeyCorp reaffirmed an “overweight” rating and set a $650.00 price objective on shares of UnitedHealth Group in a report on Friday, January 17th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $700.00 price target on shares of UnitedHealth Group in a report on Friday, January 17th. Finally, Wells Fargo & Company dropped their price objective on shares of UnitedHealth Group from $694.00 to $660.00 and set an “overweight” rating for the company in a research report on Tuesday, January 28th. Twenty-one research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $632.85.

Hedge Funds Weigh In On UnitedHealth Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. NewSquare Capital LLC bought a new position in shares of UnitedHealth Group during the fourth quarter worth about $25,000. Marshall & Sterling Wealth Advisors Inc. acquired a new stake in shares of UnitedHealth Group in the fourth quarter valued at approximately $26,000. Hurley Capital LLC bought a new position in UnitedHealth Group in the fourth quarter valued at $28,000. AlphaMark Advisors LLC bought a new stake in UnitedHealth Group during the 4th quarter worth about $30,000. Finally, Aster Capital Management DIFC Ltd bought a new position in shares of UnitedHealth Group in the 4th quarter valued at about $30,000. 87.86% of the stock is owned by institutional investors and hedge funds.

UnitedHealth Group Stock Down 22.0 %

The firm has a market cap of $417.20 billion, a P/E ratio of 29.43, a price-to-earnings-growth ratio of 1.37 and a beta of 0.61. The firm has a fifty day moving average of $514.51 and a 200-day moving average of $541.53. The company has a quick ratio of 0.91, a current ratio of 0.83 and a debt-to-equity ratio of 0.74.

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.