Investors Buy Shares of UnitedHealth Group (UNH) on Weakness
Traders purchased shares of UnitedHealth Group Inc (NYSE:UNH) on weakness during trading hours on Friday. $249.96 million flowed into the stock on the tick-up and $166.26 million flowed out of the stock on the tick-down, for a money net flow of $83.70 million into the stock. Of all stocks tracked, UnitedHealth Group had the 8th highest net in-flow for the day. UnitedHealth Group traded down ($1.37) for the day and closed at $268.28
Several brokerages have weighed in on UNH. Morgan Stanley lifted their target price on UnitedHealth Group from $278.00 to $305.00 and gave the company an “overweight” rating in a research note on Wednesday. Cantor Fitzgerald reaffirmed a “buy” rating and set a $300.00 target price on shares of UnitedHealth Group in a research note on Thursday, August 9th. Leerink Swann reaffirmed an “outperform” rating on shares of UnitedHealth Group in a research note on Wednesday, July 18th. Citigroup lifted their target price on UnitedHealth Group from $275.00 to $288.00 and gave the company a “$255.42” rating in a research note on Wednesday, July 18th. Finally, Royal Bank of Canada lifted their price target on UnitedHealth Group from $282.00 to $284.00 and gave the company a “$255.42” rating in a research report on Wednesday, July 18th. Twenty-two equities research analysts have rated the stock with a buy rating, The company presently has an average rating of “Buy” and a consensus target price of $272.43.
The stock has a market cap of $257.60 billion, a PE ratio of 26.87, a price-to-earnings-growth ratio of 1.59 and a beta of 0.71. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.75 and a quick ratio of 0.75.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 18th. Investors of record on Friday, September 7th will be issued a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a dividend yield of 1.34%. The ex-dividend date of this dividend is Thursday, September 6th. UnitedHealth Group’s payout ratio is 35.75%.
UnitedHealth Group declared that its Board of Directors has initiated a share buyback program on Wednesday, June 6th that authorizes the company to repurchase 100,000,000 outstanding shares. This repurchase authorization authorizes the healthcare conglomerate to repurchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.
In related news, Director William C. Ballard, Jr. sold 10,000 shares of UnitedHealth Group stock in a transaction on Wednesday, August 8th. The stock was sold at an average price of $258.83, for a total value of $2,588,300.00. Following the transaction, the director now directly owns 77,172 shares in the company, valued at approximately $19,974,428.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Larry C. Renfro sold 19,652 shares of UnitedHealth Group stock in a transaction on Friday, June 15th. The stock was sold at an average price of $254.55, for a total value of $5,002,416.60. Following the completion of the transaction, the insider now owns 153,679 shares in the company, valued at $39,118,989.45. The disclosure for this sale can be found here. Insiders sold a total of 60,222 shares of company stock worth $15,526,045 over the last 90 days. Insiders own 0.87% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Welch Group LLC purchased a new position in shares of UnitedHealth Group during the second quarter valued at $106,000. Blue Chip Partners Inc. purchased a new position in shares of UnitedHealth Group during the second quarter valued at $107,000. Bamco Inc. NY purchased a new position in shares of UnitedHealth Group during the first quarter valued at $117,000. Northwest Wealth Management LLC purchased a new position in shares of UnitedHealth Group during the second quarter valued at $117,000. Finally, Fort L.P. purchased a new position in shares of UnitedHealth Group during the second quarter valued at $119,000. Institutional investors and hedge funds own 85.38% of the company’s stock.
About UnitedHealth Group (NYSE:UNH)
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx. 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 for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; and Medicaid plans, Children's Health Insurance Program, and health care programs; and health and dental benefits.
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