UnitedHealth Group (NYSE:UNH) Trading Up 5% on Earnings Beat

UnitedHealth Group Incorporated (NYSE:UNH) shares were up 5% on Tuesday following a better than expected earnings announcement. The company traded as high as $479.75 and last traded at $467.80. Approximately 5,622,850 shares traded hands during mid-day trading, an increase of 30% from the average daily volume of 4,314,540 shares. The stock had previously closed at $445.63.

The healthcare conglomerate reported $6.91 EPS for the quarter, topping the consensus estimate of $6.54 by $0.37. UnitedHealth Group had a return on equity of 26.39% and a net margin of 6.02%. The company had revenue of $99.80 billion during the quarter, compared to the consensus estimate of $99.23 billion. During the same period last year, the company earned $6.26 EPS. UnitedHealth Group’s revenue for the quarter was up 8.6% on a year-over-year basis.

UnitedHealth Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 19th. Stockholders of record on Monday, March 11th were given a dividend of $1.88 per share. The ex-dividend date of this dividend was Friday, March 8th. This represents a $7.52 annualized dividend and a dividend yield of 1.60%. UnitedHealth Group’s payout ratio is 31.54%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on UNH shares. Wells Fargo & Company lowered their target price on shares of UnitedHealth Group from $600.00 to $525.00 and set an “overweight” rating on the stock in a report on Monday, April 8th. Oppenheimer restated an “outperform” rating and set a $610.00 price objective on shares of UnitedHealth Group in a research report on Wednesday, January 17th. Piper Sandler cut their target price on UnitedHealth Group from $584.00 to $581.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 17th. HSBC raised shares of UnitedHealth Group from a “reduce” rating to a “hold” rating and set a $460.00 price objective for the company in a research note on Thursday, April 4th. Finally, TD Cowen lowered their target price on shares of UnitedHealth Group from $607.00 to $546.00 and set a “buy” rating for the company in a report on Wednesday, April 10th. Three investment analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company’s stock. According to MarketBeat, UnitedHealth Group currently has a consensus rating of “Moderate Buy” and an average price target of $573.80.

Insider Buying and Selling at UnitedHealth Group

In other UnitedHealth Group news, CAO Thomas E. Roos sold 858 shares of UnitedHealth Group stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $525.79, for a total value of $451,127.82. Following the transaction, the chief accounting officer now owns 32,289 shares in the company, valued at $16,977,233.31. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, EVP Erin Mcsweeney sold 1,236 shares of the firm’s stock in a transaction dated Friday, March 8th. The stock was sold at an average price of $483.48, for a total value of $597,581.28. Following the completion of the transaction, the executive vice president now directly owns 9,364 shares in the company, valued at $4,527,306.72. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Thomas E. Roos sold 858 shares of the firm’s stock in a transaction that occurred on Friday, February 23rd. The stock was sold at an average price of $525.79, for a total transaction of $451,127.82. Following the transaction, the chief accounting officer now directly owns 32,289 shares of the company’s stock, valued at $16,977,233.31. The disclosure for this sale can be found here. Insiders own 0.35% of the company’s stock.

Institutional Investors Weigh In On UnitedHealth Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ascension Capital Advisors Inc. purchased a new stake in UnitedHealth Group in the 3rd quarter worth approximately $216,000. Bellecapital International Ltd. grew its position in UnitedHealth Group by 1.4% during the fourth quarter. Bellecapital International Ltd. now owns 13,823 shares of the healthcare conglomerate’s stock valued at $7,277,000 after buying an additional 193 shares during the period. Great Valley Advisor Group Inc. boosted its stake in shares of UnitedHealth Group by 5.8% during the 3rd quarter. Great Valley Advisor Group Inc. now owns 34,297 shares of the healthcare conglomerate’s stock worth $17,292,000 after acquiring an additional 1,884 shares in the last quarter. Rise Advisors LLC boosted its position in UnitedHealth Group by 326.0% during the fourth quarter. Rise Advisors LLC now owns 213 shares of the healthcare conglomerate’s stock worth $112,000 after purchasing an additional 163 shares in the last quarter. Finally, Gradient Investments LLC lifted its position in shares of UnitedHealth Group by 6.3% during the 4th quarter. Gradient Investments LLC now owns 84,278 shares of the healthcare conglomerate’s stock valued at $44,370,000 after buying an additional 5,023 shares in 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 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 0.62. The stock’s 50-day simple moving average is $491.15 and its two-hundred day simple moving average is $515.88. The company has a market capitalization of $434.33 billion, a price-to-earnings ratio of 19.62, a PEG ratio of 1.20 and a beta of 0.54.

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.