Traders Buy High Volume of UnitedHealth Group Call Options (NYSE:UNH)

UnitedHealth Group Incorporated (NYSE:UNH) was the recipient of some unusual options trading activity on Friday. Stock investors bought 392,146 call options on the stock. Thisisanincreaseof45% compared to the average daily volume of 270,780 call options.

UnitedHealth Group Price Performance

UnitedHealth Group stock opened at $304.02 on Friday. The stock has a market cap of $275.34 billion, a price-to-earnings ratio of 13.17, a price-to-earnings-growth ratio of 1.75 and a beta of 0.43. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.85 and a quick ratio of 0.85. UnitedHealth Group has a 1 year low of $234.60 and a 1 year high of $630.73. The firm has a 50-day moving average of $288.91 and a two-hundred day moving average of $397.82.

UnitedHealth Group (NYSE:UNH) last released its quarterly earnings data on Tuesday, July 29th. The healthcare conglomerate reported $4.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.45 by ($0.37). UnitedHealth Group had a net margin of 5.04% and a return on equity of 23.32%. The company had revenue of $111.62 billion during the quarter, compared to analysts’ expectations of $111.75 billion. During the same period last year, the firm earned $6.80 earnings per share. UnitedHealth Group’s quarterly revenue was up 12.9% on a year-over-year basis. On average, research analysts forecast that UnitedHealth Group will post 29.54 earnings per share for the current year.

UnitedHealth Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Monday, September 15th will be issued a $2.21 dividend. The ex-dividend date is Monday, September 15th. This represents a $8.84 annualized dividend and a dividend yield of 2.9%. UnitedHealth Group’s payout ratio is currently 38.30%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on UNH shares. UBS Group reissued a “buy” rating on shares of UnitedHealth Group in a research note on Thursday, July 17th. Robert W. Baird restated an “underperform” rating and issued a $198.00 price objective (down previously from $312.00) on shares of UnitedHealth Group in a report on Thursday, July 31st. Wall Street Zen cut shares of UnitedHealth Group from a “buy” rating to a “hold” rating in a report on Saturday, May 24th. JPMorgan Chase & Co. cut their price target on shares of UnitedHealth Group from $418.00 to $310.00 and set an “overweight” rating on the stock in a report on Wednesday, August 6th. Finally, Royal Bank Of Canada dropped their target price on shares of UnitedHealth Group from $355.00 to $286.00 and set an “outperform” rating on the stock in a report on Wednesday, July 30th. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and fifteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $366.52.

Insider Activity at UnitedHealth Group

In other news, CEO Patrick Hugh Conway sold 589 shares of the company’s stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $305.00, for a total transaction of $179,645.00. Following the completion of the transaction, the chief executive officer directly owned 10,398 shares of the company’s stock, valued at approximately $3,171,390. This represents a 5.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.28% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Marshall & Sterling Wealth Advisors Inc. bought a new position in shares of UnitedHealth Group during the 4th quarter worth approximately $26,000. Bayforest Capital Ltd raised its stake in shares of UnitedHealth Group by 685.7% during the 1st quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate’s stock worth $29,000 after acquiring an additional 48 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd increased its stake in UnitedHealth Group by 416.7% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 62 shares of the healthcare conglomerate’s stock valued at $32,000 after purchasing an additional 50 shares in the last quarter. IAG Wealth Partners LLC acquired a new position in UnitedHealth Group during the 1st quarter valued at approximately $42,000. Finally, LFA Lugano Financial Advisors SA acquired a new position in UnitedHealth Group during the 2nd quarter valued at approximately $25,000. Institutional investors own 87.86% of the company’s stock.

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.