UnitedHealth Group Inc. (UNH) Shares Up 6.7% After Better-Than-Expected Earnings
UnitedHealth Group Inc. (NYSE:UNH) traded up 6.7% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $143.94 and last traded at $143.12, with a volume of 6,506,859 shares changing hands. The stock had previously closed at $134.13.
The healthcare conglomerate reported $2.17 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.08 by $0.09. UnitedHealth Group had a net margin of 3.51% and a return on equity of 19.08%. The company earned $46.30 billion during the quarter. During the same period in the previous year, the company posted $1.77 earnings per share. UnitedHealth Group’s revenue was up 11.6% compared to the same quarter last year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 20th. Shareholders of record on Friday, September 9th were issued a dividend of $0.625 per share. The ex-dividend date was Tuesday, September 6th. This represents a $2.50 annualized dividend and a yield of 1.86%. UnitedHealth Group’s payout ratio is presently 39.12%.
UNH has been the topic of several recent analyst reports. Leerink Swann restated an “outperform” rating on shares of UnitedHealth Group in a report on Sunday, August 21st. Sanford C. Bernstein restated an “outperform” rating and set a $178.00 price objective on shares of UnitedHealth Group in a report on Tuesday, September 6th. Royal Bank Of Canada boosted their price objective on UnitedHealth Group from $157.00 to $165.00 and gave the stock an “outperform” rating in a report on Wednesday, July 20th. Vetr upgraded UnitedHealth Group from a “buy” rating to a “buy” rating in a report on Friday, October 7th. Finally, Credit Suisse Group AG restated a “buy” rating and set a $148.00 price objective on shares of UnitedHealth Group in a report on Wednesday, June 29th. One equities research analyst has rated the stock with a hold rating, twenty-five have issued a buy rating and one has issued a strong buy rating to the company. The company has an average rating of “Buy” and a consensus target price of $155.35.
In other news, Director Richard T. Burke sold 40,000 shares of the firm’s stock in a transaction on Wednesday, September 7th. The stock was sold at an average price of $135.31, for a total value of $5,412,400.00. Following the completion of the sale, the director now directly owns 2,003,550 shares in the company, valued at $271,100,350.50. The sale was disclosed in a filing with the SEC, which is accessible through this link. 1.65% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in the stock. Emerald Acquisition Ltd. purchased a new position in UnitedHealth Group during the second quarter valued at about $309,266,000. Bank of Montreal Can purchased a new position in UnitedHealth Group during the second quarter valued at about $207,013,000. Dodge & Cox boosted its position in UnitedHealth Group by 9.6% in the first quarter. Dodge & Cox now owns 15,183,189 shares of the healthcare conglomerate’s stock valued at $1,957,113,000 after buying an additional 1,324,136 shares in the last quarter. Boston Partners boosted its position in UnitedHealth Group by 47.6% in the second quarter. Boston Partners now owns 3,531,669 shares of the healthcare conglomerate’s stock valued at $498,672,000 after buying an additional 1,138,808 shares in the last quarter. Finally, Vanguard Group Inc. boosted its position in UnitedHealth Group by 2.0% in the second quarter. Vanguard Group Inc. now owns 57,213,923 shares of the healthcare conglomerate’s stock valued at $8,078,605,000 after buying an additional 1,123,084 shares in the last quarter. Institutional investors own 85.80% of the company’s stock.
The stock’s 50-day moving average is $136.95 and its 200-day moving average is $136.65. The stock has a market cap of $136.40 billion, a price-to-earnings ratio of 22.41 and a beta of 0.57.
About UnitedHealth Group
UnitedHealth Group Incorporated is a diversified healthcare company. The Company operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. The Company conducts its operations through two business platforms: health benefits operating under UnitedHealthcare and health services operating under Optum.
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