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

UnitedHealth Group Incorporated (NYSE:UNH)’s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $445.63, but opened at $476.77. UnitedHealth Group shares last traded at $475.48, with a volume of 3,304,098 shares changing hands.

The healthcare conglomerate reported $6.91 earnings per share for the quarter, beating analysts’ consensus estimates of $6.54 by $0.37. UnitedHealth Group had a net margin of 6.02% and a return on equity of 26.39%. The firm had revenue of $99.80 billion for the quarter, compared to analyst estimates of $99.23 billion. During the same quarter in the previous year, the firm posted $6.26 earnings per share. The business’s revenue was up 8.6% on a year-over-year basis.

UnitedHealth Group Announces Dividend

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

Wall Street Analysts Forecast Growth

UNH has been the topic of several research reports. Bank of America reiterated a “buy” rating and issued a $675.00 price objective on shares of UnitedHealth Group in a report on Thursday, March 7th. Morgan Stanley decreased their price objective on shares of UnitedHealth Group from $618.00 to $584.00 and set an “overweight” rating on the stock in a report on Friday, April 5th. Wells Fargo & Company decreased their price objective 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. Cantor Fitzgerald restated an “overweight” rating and issued a $591.00 price target on shares of UnitedHealth Group in a research note on Wednesday, April 10th. Finally, Stephens restated an “overweight” rating and issued a $605.00 price target on shares of UnitedHealth Group in a research note on Thursday, February 8th. 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 data from MarketBeat, UnitedHealth Group currently has a consensus rating of “Moderate Buy” and an average price target of $573.80.

Insider Transactions at UnitedHealth Group

In other news, CAO Thomas E. Roos sold 858 shares of the 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 completion of the transaction, the chief accounting officer now owns 32,289 shares of the company’s stock, valued at $16,977,233.31. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, EVP Erin Mcsweeney sold 1,236 shares of the firm’s stock in a transaction that occurred on Friday, March 8th. The shares were 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 owns 9,364 shares in the company, valued at approximately $4,527,306.72. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Thomas E. Roos sold 858 shares of the firm’s stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $525.79, for a total transaction of $451,127.82. Following the completion of the transaction, the chief accounting officer now owns 32,289 shares of the company’s stock, valued at approximately $16,977,233.31. The disclosure for this sale can be found here. Company insiders own 0.35% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Toth Financial Advisory Corp raised its holdings in UnitedHealth Group by 1.5% in the 1st quarter. Toth Financial Advisory Corp now owns 20,024 shares of the healthcare conglomerate’s stock valued at $9,906,000 after buying an additional 302 shares during the last quarter. Trifecta Capital Advisors LLC increased its position in UnitedHealth Group by 4.4% during the 1st quarter. Trifecta Capital Advisors LLC now owns 9,942 shares of the healthcare conglomerate’s stock valued at $4,918,000 after purchasing an additional 420 shares during the period. Reliant Investment Management LLC increased its position in UnitedHealth Group by 2.2% during the 1st quarter. Reliant Investment Management LLC now owns 11,533 shares of the healthcare conglomerate’s stock valued at $5,705,000 after purchasing an additional 251 shares during the period. Weaver Consulting Group increased its position in UnitedHealth Group by 4.6% during the 1st quarter. Weaver Consulting Group now owns 593 shares of the healthcare conglomerate’s stock valued at $293,000 after purchasing an additional 26 shares during the period. Finally, Occidental Asset Management LLC increased its position in UnitedHealth Group by 1.7% during the 1st quarter. Occidental Asset Management LLC now owns 6,293 shares of the healthcare conglomerate’s stock valued at $3,113,000 after purchasing an additional 106 shares during the period. Institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Price Performance

The firm has a market cap of $432.51 billion, a price-to-earnings ratio of 19.68, a P/E/G ratio of 1.20 and a beta of 0.54. The business’s 50-day simple moving average is $490.31 and its two-hundred day simple moving average is $515.63. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 0.62.

UnitedHealth Group Company Profile

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.