UnitedHealth Group (NYSE:UNH) Stock Price Up 5% on Better-Than-Expected Earnings

UnitedHealth Group Incorporated (NYSE:UNH)’s stock price shot up 5% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $479.75 and last traded at $467.80. 5,622,850 shares were traded during trading, an increase of 30% from the average session volume of 4,314,540 shares. The stock had previously closed at $445.63.

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

UnitedHealth Group Announces Dividend

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

Analyst Ratings Changes

Several equities analysts have recently issued reports on UNH shares. HSBC raised shares of UnitedHealth Group from a “reduce” rating to a “hold” rating and set a $460.00 price target for the company in a report on Thursday, April 4th. Morgan Stanley dropped their price target on UnitedHealth Group from $618.00 to $584.00 and set an “overweight” rating on the stock in a research report on Friday, April 5th. Oppenheimer reiterated an “outperform” rating and issued a $610.00 price target on shares of UnitedHealth Group in a report on Wednesday, January 17th. Cantor Fitzgerald reiterated an “overweight” rating and set a $591.00 target price on shares of UnitedHealth Group in a report on Wednesday, April 10th. Finally, Bank of America reiterated a “buy” rating and set a $675.00 price objective on shares of UnitedHealth Group in a report on Thursday, March 7th. Three equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $573.80.

Insider Buying and Selling at UnitedHealth Group

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 value of $451,127.82. Following the completion of the sale, the chief accounting officer now owns 32,289 shares of the company’s stock, valued at approximately $16,977,233.31. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, EVP Erin Mcsweeney sold 1,236 shares of UnitedHealth Group 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 transaction, the executive vice president now directly owns 9,364 shares of the company’s stock, valued at $4,527,306.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Thomas E. Roos sold 858 shares of the stock in a transaction dated Friday, February 23rd. The stock was 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 directly 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. Insiders own 0.35% of the company’s stock.

Institutional Investors Weigh In On UnitedHealth Group

A number of hedge funds and other institutional investors have recently bought and sold shares of UNH. Ascension Capital Advisors Inc. acquired a new stake in shares of UnitedHealth Group in the third quarter valued at about $216,000. Bellecapital International Ltd. raised its stake in UnitedHealth Group by 1.4% during the fourth quarter. Bellecapital International Ltd. now owns 13,823 shares of the healthcare conglomerate’s stock worth $7,277,000 after buying an additional 193 shares during the last quarter. Great Valley Advisor Group Inc. raised its position in shares of UnitedHealth Group by 5.8% in the 3rd quarter. Great Valley Advisor Group Inc. now owns 34,297 shares of the healthcare conglomerate’s stock worth $17,292,000 after acquiring an additional 1,884 shares in the last quarter. Rise Advisors LLC increased its holdings in UnitedHealth Group by 326.0% in the fourth quarter. Rise Advisors LLC now owns 213 shares of the healthcare conglomerate’s stock worth $112,000 after purchasing an additional 163 shares in the last quarter. Finally, Gradient Investments LLC boosted its holdings in shares of UnitedHealth Group by 6.3% during the 4th quarter. Gradient Investments LLC now owns 84,278 shares of the healthcare conglomerate’s stock worth $44,370,000 after buying an additional 5,023 shares in the last quarter. Institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Stock Up 5.7 %

The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.79 and a current ratio of 0.79. The company has a market cap of $434.33 billion, a P/E ratio of 19.62, a price-to-earnings-growth ratio of 1.20 and a beta of 0.54. The firm’s 50 day moving average price is $491.15 and its two-hundred day moving average price is $515.88.

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.