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

Shares of UnitedHealth Group Incorporated (NYSE:UNH) gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $282.12, but opened at $265.70. UnitedHealth Group shares last traded at $270.63, with a volume of 12,078,849 shares.

The healthcare conglomerate reported $4.08 earnings per share (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 the consensus estimate of $111.75 billion. During the same period in the previous year, the company earned $6.80 EPS. The firm’s revenue for the quarter was up 12.9% compared to the same quarter last year.

UnitedHealth Group Increases Dividend

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

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Oppenheimer decreased their target price on UnitedHealth Group from $400.00 to $325.00 and set an “outperform” rating for the company in a research note on Wednesday. Erste Group Bank downgraded shares of UnitedHealth Group from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, April 30th. KeyCorp reduced their price target on shares of UnitedHealth Group from $400.00 to $350.00 and set an “overweight” rating for the company in a report on Wednesday. JPMorgan Chase & Co. upped their price objective on shares of UnitedHealth Group from $405.00 to $418.00 and gave the company an “overweight” rating in a research report on Friday, June 20th. Finally, Truist Financial decreased their target price on UnitedHealth Group from $360.00 to $345.00 and set a “buy” rating on the stock in a research report on Wednesday, July 16th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and fifteen have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $378.95.

Insider Buying and Selling

In related news, CEO Patrick Hugh Conway sold 589 shares of UnitedHealth Group stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $305.00, for a total transaction of $179,645.00. Following the completion of the transaction, the chief executive officer directly owned 10,398 shares of the company’s stock, valued at $3,171,390. This trade represents a 5.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Kristen Gil acquired 3,700 shares of the firm’s stock in a transaction on Thursday, May 15th. The shares were purchased at an average cost of $271.17 per share, for a total transaction of $1,003,329.00. Following the completion of the purchase, the director directly owned 3,818 shares of the company’s stock, valued at approximately $1,035,327.06. The trade was a 3,135.59% increase in their position. The disclosure for this purchase can be found here. Insiders have acquired 109,408 shares of company stock worth $31,607,768 in the last three months. Company insiders own 0.28% of the company’s stock.

Institutional Trading of UnitedHealth Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Citizens National Bank Trust Department raised its position in shares of UnitedHealth Group by 1.0% during the first quarter. Citizens National Bank Trust Department now owns 17,886 shares of the healthcare conglomerate’s stock worth $9,368,000 after acquiring an additional 170 shares during the last quarter. Fort Washington Investment Advisors Inc. OH lifted its position in UnitedHealth Group by 0.3% during the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 530,103 shares of the healthcare conglomerate’s stock valued at $277,641,000 after purchasing an additional 1,465 shares during the period. Sherbrooke Park Advisers LLC acquired a new stake in shares of UnitedHealth Group during the 4th quarter worth approximately $515,000. Full Sail Capital LLC lifted its holdings in UnitedHealth Group by 2.1% in the fourth quarter. Full Sail Capital LLC now owns 1,612 shares of the healthcare conglomerate’s stock valued at $815,000 after buying an additional 33 shares during the period. Finally, Soros Fund Management LLC acquired a new stake in UnitedHealth Group during the 4th quarter worth $39,413,000. 87.86% of the stock is currently owned by institutional investors and hedge funds.

UnitedHealth Group Stock Performance

The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.73. The stock has a 50 day moving average price of $298.96 and a two-hundred day moving average price of $420.36. The company has a market cap 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.

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.