UnitedHealth Group (NYSE:UNH) Shares Gap Up – Here’s Why

Shares of UnitedHealth Group Incorporated (NYSE:UNH) gapped up before the market opened on Friday . The stock had previously closed at $271.49, but opened at $301.71. UnitedHealth Group shares last traded at $302.86, with a volume of 22,593,588 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have commented on UNH shares. Piper Sandler cut their target price on UnitedHealth Group from $353.00 to $317.00 and set an “overweight” rating on the stock in a report on Wednesday, July 30th. Oppenheimer cut their target price on UnitedHealth Group from $400.00 to $325.00 and set an “outperform” rating on the stock in a report on Wednesday, July 30th. Bank of America cut their target price on UnitedHealth Group from $350.00 to $300.00 and set a “neutral” rating on the stock in a report on Tuesday, July 29th. HSBC reaffirmed a “reduce” rating and set a $270.00 target price (down from $490.00) on shares of UnitedHealth Group in a report on Wednesday, May 21st. Finally, Morgan Stanley cut 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. Three investment analysts have rated the stock with a sell rating, seven have given a hold rating and fifteen have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $366.52.

UnitedHealth Group Stock Performance

The stock has a market capitalization of $275.34 billion, a P/E ratio of 13.17, a price-to-earnings-growth ratio of 1.96 and a beta of 0.43. The company has a 50 day simple moving average of $288.91 and a 200-day simple moving average of $396.85. 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 (NYSE:UNH) last posted its earnings results 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 return on equity of 23.32% and a net margin of 5.04%. The company had revenue of $111.62 billion for the quarter, compared to analysts’ expectations of $111.75 billion. During the same quarter in the prior year, the company earned $6.80 EPS. The company’s revenue was up 12.9% on a year-over-year basis. On average, equities analysts forecast that UnitedHealth Group Incorporated will post 29.54 EPS for the current year.

UnitedHealth Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Monday, September 15th will be paid a dividend of $2.21 per share. This represents a $8.84 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Monday, September 15th. UnitedHealth Group’s dividend payout ratio (DPR) is 38.30%.

Insider Activity

In other UnitedHealth Group news, CEO Patrick Hugh Conway sold 589 shares of UnitedHealth Group stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $305.00, for a total transaction of $179,645.00. Following the sale, the chief executive officer directly owned 10,398 shares of the company’s stock, valued at approximately $3,171,390. The trade was a 5.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.28% of the stock is owned by insiders.

Hedge Funds Weigh In On UnitedHealth Group

Several large investors have recently made changes to their positions in the business. LFA Lugano Financial Advisors SA bought a new stake in shares of UnitedHealth Group during the 2nd quarter valued at $25,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of UnitedHealth Group during the 4th quarter valued at $26,000. Bayforest Capital Ltd grew its position 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 valued at $29,000 after acquiring an additional 48 shares during the period. Sagard Holdings Management Inc. bought a new position in UnitedHealth Group in the 2nd quarter worth $29,000. Finally, Islay Capital Management LLC bought a new position in UnitedHealth Group in the 2nd quarter worth $31,000. 87.86% of the stock is currently owned by hedge funds and other institutional investors.

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.