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

UnitedHealth Group Incorporated (NYSE:UNH) shares gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $282.12, but opened at $265.70. UnitedHealth Group shares last traded at $270.63, with a volume of 12,078,849 shares traded.

The healthcare conglomerate reported $4.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.16 by ($1.08). UnitedHealth Group had a net margin of 5.39% and a return on equity of 26.29%. 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 earnings per share. The company’s revenue was up 12.9% on a year-over-year basis.

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. This represents a $8.84 dividend on an annualized basis and a yield of 3.39%. This is an increase from UnitedHealth Group’s previous quarterly dividend of $2.10. The ex-dividend date of this dividend was Monday, June 16th. UnitedHealth Group’s payout ratio is presently 37.02%.

Analyst Ratings Changes

A number of research firms have weighed in on UNH. Bank of America decreased their price objective on UnitedHealth Group from $350.00 to $300.00 and set a “neutral” rating on the stock in a report on Tuesday. TD Cowen downgraded UnitedHealth Group from a “buy” rating to a “hold” rating and set a $308.00 price objective on the stock. in a report on Monday, May 19th. Morgan Stanley reduced their target price on UnitedHealth Group from $563.00 to $374.00 and set an “overweight” rating on the stock in a report on Wednesday, May 14th. KeyCorp reduced their target price on UnitedHealth Group from $450.00 to $400.00 and set an “overweight” rating on the stock in a report on Monday, June 2nd. Finally, Wells Fargo & Company reduced their target price on UnitedHealth Group from $351.00 to $306.00 and set an “overweight” rating on the stock in a report on Friday, July 25th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and fifteen have assigned a buy rating to the company’s stock. According to MarketBeat, UnitedHealth Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $389.90.

Insider Activity

In other news, Director Timothy Patrick Flynn acquired 1,533 shares of the stock in a transaction that occurred on Wednesday, May 14th. The stock was acquired at an average price of $320.80 per share, for a total transaction of $491,786.40. Following the transaction, the director directly owned 6,033 shares in the company, valued at approximately $1,935,386.40. This represents a 34.07% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Kristen Gil acquired 3,700 shares of the stock in a transaction that occurred on Thursday, May 15th. The stock was purchased at an average price of $271.17 per share, with a total value of $1,003,329.00. Following the transaction, the director owned 3,818 shares in the company, valued at $1,035,327.06. This represents a 3,135.59% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 109,408 shares of company stock worth $31,607,768. 0.28% of the stock is owned by company insiders.

Hedge Funds Weigh In On UnitedHealth Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UNH. Financial Management Professionals Inc. boosted its stake in shares of UnitedHealth Group by 0.8% during the 1st quarter. Financial Management Professionals Inc. now owns 2,224 shares of the healthcare conglomerate’s stock worth $1,165,000 after buying an additional 17 shares during the last quarter. Global Wealth Strategies & Associates grew its position in UnitedHealth Group by 28.6% during the first quarter. Global Wealth Strategies & Associates now owns 90 shares of the healthcare conglomerate’s stock worth $47,000 after buying an additional 20 shares in the last quarter. Kolinsky Wealth Management LLC increased its stake in UnitedHealth Group by 1.0% in the fourth quarter. Kolinsky Wealth Management LLC now owns 2,135 shares of the healthcare conglomerate’s stock valued at $1,080,000 after acquiring an additional 21 shares during the last quarter. Retirement Planning Group LLC increased its stake in UnitedHealth Group by 5.1% in the first quarter. Retirement Planning Group LLC now owns 430 shares of the healthcare conglomerate’s stock valued at $225,000 after acquiring an additional 21 shares during the last quarter. Finally, Net Worth Advisory Group increased its stake in UnitedHealth Group by 0.6% in the first quarter. Net Worth Advisory Group now owns 3,642 shares of the healthcare conglomerate’s stock valued at $1,907,000 after acquiring an additional 21 shares during the last quarter. 87.86% of the stock is owned by institutional investors and hedge funds.

UnitedHealth Group Price Performance

The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 0.71. The firm has a market capitalization of $236.62 billion, a P/E ratio of 10.92, a PEG ratio of 1.40 and a beta of 0.45. The business’s 50 day moving average is $299.69 and its 200-day moving average is $421.43.

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.