UnitedHealth Group (NYSE:UNH) Shares Down 4.6% Following Weak Earnings

UnitedHealth Group Incorporated (NYSE:UNH) shares fell 4.6% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $260.55 and last traded at $269.10. 21,043,308 shares traded hands during trading, an increase of 84% from the average session volume of 11,449,892 shares. The stock had previously closed at $282.12.

The healthcare conglomerate reported $4.08 EPS for the quarter, missing analysts’ consensus estimates 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 previous year, the business posted $6.80 EPS. The business’s quarterly revenue was up 12.9% compared to the same quarter last year.

UnitedHealth Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 24th. Stockholders of record on Monday, June 16th were issued a dividend of $2.21 per share. The ex-dividend date was Monday, June 16th. This represents a $8.84 dividend on an annualized basis and a dividend yield of 3.32%. This is an increase from UnitedHealth Group’s previous quarterly dividend of $2.10. UnitedHealth Group’s dividend payout ratio (DPR) is currently 37.02%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. HSBC reissued a “reduce” rating and set a $270.00 target price (down previously from $490.00) on shares of UnitedHealth Group in a research note on Wednesday, May 21st. Robert W. Baird lowered shares of UnitedHealth Group from an “outperform” rating to a “neutral” rating and set a $312.00 price objective on the stock. in a report on Wednesday, June 11th. Wells Fargo & Company dropped their price target on shares of UnitedHealth Group from $351.00 to $306.00 and set an “overweight” rating for the company in a research report on Friday, July 25th. Erste Group Bank lowered shares of UnitedHealth Group from a “strong-buy” rating to a “hold” rating in a report on Wednesday, April 30th. Finally, Baird R W lowered UnitedHealth Group from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 11th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and fifteen have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $378.95.

Insider Transactions at UnitedHealth Group

In related news, Director Kristen Gil acquired 3,700 shares of the business’s stock in a transaction on Thursday, May 15th. The shares were bought at an average price of $271.17 per share, with a total value of $1,003,329.00. Following the completion of the acquisition, the director owned 3,818 shares in the company, valued at $1,035,327.06. This trade represents a 3,135.59% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Timothy Patrick Flynn bought 1,533 shares of the company’s stock in a transaction that occurred on Wednesday, May 14th. The stock was bought at an average cost of $320.80 per share, for a total transaction of $491,786.40. Following the completion of the transaction, the director directly owned 6,033 shares in the company, valued at approximately $1,935,386.40. The trade was a 34.07% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have bought a total of 109,408 shares of company stock valued at $31,607,768 over the last ninety days. Company insiders own 0.28% of the company’s stock.

Hedge Funds Weigh In On UnitedHealth Group

Several hedge funds have recently made changes to their positions in UNH. Brighton Jones LLC boosted its stake in UnitedHealth Group by 176.2% during the 4th quarter. Brighton Jones LLC now owns 44,249 shares of the healthcare conglomerate’s stock worth $22,384,000 after purchasing an additional 28,231 shares during the period. Revolve Wealth Partners LLC boosted its stake in shares of UnitedHealth Group by 137.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 4,019 shares of the healthcare conglomerate’s stock worth $2,033,000 after buying an additional 2,324 shares during the period. Bank Pictet & Cie Europe AG increased its position in UnitedHealth Group by 3.9% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 263,655 shares of the healthcare conglomerate’s stock valued at $133,373,000 after acquiring an additional 9,872 shares during the period. Trexquant Investment LP acquired a new stake in UnitedHealth Group during the 4th quarter worth approximately $11,141,000. Finally, Meeder Advisory Services Inc. increased its holdings in shares of UnitedHealth Group by 4.1% in the fourth quarter. Meeder Advisory Services Inc. now owns 17,092 shares of the healthcare conglomerate’s stock valued at $8,646,000 after purchasing an additional 668 shares during the period. Hedge funds and other institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Trading Up 2.1%

The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 0.73. The stock has a market capitalization of $241.69 billion, a price-to-earnings ratio of 11.54, a P/E/G ratio of 1.37 and a beta of 0.45. The company has a fifty day moving average of $298.96 and a two-hundred day moving average of $420.36.

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.