UnitedHealth Group (NYSE:UNH) Shares Gap Down After Earnings Miss

Shares of UnitedHealth Group Incorporated (NYSE:UNH) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $585.04, but opened at $481.95. UnitedHealth Group shares last traded at $466.92, with a volume of 7,128,580 shares.

The healthcare conglomerate reported $7.20 EPS for the quarter, missing the consensus estimate of $7.29 by ($0.09). The business had revenue of $109.58 billion during the quarter, compared to analysts’ expectations of $111.56 billion. UnitedHealth Group had a net margin of 3.60% and a return on equity of 26.69%. During the same period last year, the company earned $6.91 EPS.

UnitedHealth Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 18th. Shareholders of record on Monday, March 10th were paid a dividend of $2.10 per share. This represents a $8.40 annualized dividend and a yield of 1.84%. The ex-dividend date was Monday, March 10th. UnitedHealth Group’s dividend payout ratio is presently 54.19%.

Wall Street Analyst Weigh In

UNH has been the subject of a number of recent analyst reports. Truist Financial raised their target price on UnitedHealth Group from $610.00 to $660.00 and gave the company a “buy” rating in a report on Friday, April 11th. Mizuho lifted their price target on shares of UnitedHealth Group from $600.00 to $650.00 and gave the company an “outperform” rating in a research report on Wednesday, April 9th. Hsbc Global Res raised UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, January 10th. Piper Sandler lowered their target price on UnitedHealth Group from $605.00 to $600.00 and set an “overweight” rating on the stock in a report on Thursday, January 2nd. Finally, StockNews.com upgraded UnitedHealth Group from a “hold” rating to a “buy” rating in a research report on Thursday, January 23rd. Twenty-one research analysts have rated the stock with a buy rating and three have assigned a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Buy” and an average target price of $632.85.

Institutional Trading of UnitedHealth Group

Several institutional investors have recently added to or reduced their stakes in the company. NewSquare Capital LLC bought a new stake in UnitedHealth Group during the fourth quarter worth about $25,000. Marshall & Sterling Wealth Advisors Inc. bought a new position in UnitedHealth Group in the fourth quarter valued at approximately $26,000. Hurley Capital LLC bought a new stake in UnitedHealth Group during the fourth quarter worth $28,000. AlphaMark Advisors LLC acquired a new position in shares of UnitedHealth Group during the 4th quarter worth $30,000. Finally, Aster Capital Management DIFC Ltd acquired a new stake in UnitedHealth Group in the fourth quarter valued at about $30,000. 87.86% of the stock is currently owned by institutional investors.

UnitedHealth Group Stock Performance

The company’s 50 day moving average is $512.95 and its 200 day moving average is $540.65. The firm has a market cap of $417.20 billion, a P/E ratio of 29.43, a P/E/G ratio of 1.37 and a beta of 0.61. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.91 and a current ratio of 0.83.

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.