UnitedHealth Group (NYSE:UNH) Shares Up 5.2% After Earnings Beat

UnitedHealth Group Incorporated (NYSE:UNH)’s stock price was up 5.2% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $479.75 and last traded at $468.89. Approximately 11,816,517 shares were traded during mid-day trading, an increase of 178% from the average daily volume of 4,248,641 shares. The stock had previously closed at $445.63.

The healthcare conglomerate reported $6.91 earnings per share for the quarter, beating analysts’ consensus estimates of $6.63 by $0.28. The business had revenue of $99.80 billion during the quarter, compared to analyst estimates of $99.23 billion. UnitedHealth Group had a net margin of 4.05% and a return on equity of 26.50%. The business’s revenue was up 8.6% on a year-over-year basis. During the same period last year, the business earned $6.26 EPS.

UnitedHealth Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 19th. Shareholders of record on Monday, March 11th were issued a dividend of $1.88 per share. This represents a $7.52 annualized dividend and a yield of 1.52%. The ex-dividend date of this dividend was Friday, March 8th. UnitedHealth Group’s dividend payout ratio is currently 45.97%.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Bank of America reissued a “buy” rating and set a $675.00 price objective on shares of UnitedHealth Group in a report on Thursday, March 7th. Cantor Fitzgerald reissued an “overweight” rating and set a $591.00 price objective on shares of UnitedHealth Group in a report on Wednesday, April 10th. 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 report on Thursday, April 4th. Stephens restated an “overweight” rating and issued a $605.00 price target on shares of UnitedHealth Group in a research report on Thursday, February 8th. Finally, Barclays raised their price target on shares of UnitedHealth Group from $534.00 to $560.00 and gave the stock an “overweight” rating in a research report on Wednesday. Four equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $569.68.

Insider Activity at UnitedHealth Group

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

Institutional Trading of UnitedHealth Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Kraft Davis & Associates LLC boosted its holdings in shares of UnitedHealth Group by 3.4% in the third quarter. Kraft Davis & Associates LLC now owns 577 shares of the healthcare conglomerate’s stock worth $294,000 after buying an additional 19 shares during the period. Iron Horse Wealth Management LLC raised its holdings in shares of UnitedHealth Group by 1.6% during the third quarter. Iron Horse Wealth Management LLC now owns 1,217 shares of the healthcare conglomerate’s stock valued at $614,000 after acquiring an additional 19 shares during the period. Secure Asset Management LLC raised its holdings in shares of UnitedHealth Group by 0.8% during the third quarter. Secure Asset Management LLC now owns 2,456 shares of the healthcare conglomerate’s stock valued at $1,238,000 after acquiring an additional 19 shares during the period. Bensler LLC raised its holdings in shares of UnitedHealth Group by 0.3% during the third quarter. Bensler LLC now owns 7,293 shares of the healthcare conglomerate’s stock valued at $3,677,000 after acquiring an additional 19 shares during the period. Finally, Texas Capital Bancshares Inc TX raised its holdings in shares of UnitedHealth Group by 1.1% during the third quarter. Texas Capital Bancshares Inc TX now owns 1,695 shares of the healthcare conglomerate’s stock valued at $855,000 after acquiring an additional 19 shares during the period. 87.86% of the stock is owned by institutional investors and hedge funds.

UnitedHealth Group Price Performance

The stock’s fifty day moving average price is $488.97 and its 200-day moving average price is $515.22. The firm has a market cap of $454.66 billion, a price-to-earnings ratio of 30.14, a price-to-earnings-growth ratio of 1.28 and a beta of 0.54. The company has a debt-to-equity ratio of 0.69, a current ratio of 0.85 and a quick ratio of 0.79.

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.