Investors Buy High Volume of UnitedHealth Group Call Options (NYSE:UNH)

UnitedHealth Group Incorporated (NYSE:UNH) was the target of unusually large options trading on Friday. Traders purchased 438,212 call options on the company. This represents an increase of approximately 69% compared to the average daily volume of 259,388 call options.

UnitedHealth Group Stock Performance

UnitedHealth Group stock traded down $2.88 during mid-day trading on Friday, reaching $330.61. 5,867,276 shares of the stock traded hands, compared to its average volume of 11,955,726. The business’s 50-day moving average is $342.06 and its 200-day moving average is $315.83. The stock has a market capitalization of $299.48 billion, a PE ratio of 17.26, a price-to-earnings-growth ratio of 2.22 and a beta of 0.43. UnitedHealth Group has a 12-month low of $234.60 and a 12-month high of $606.36. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.82 and a quick ratio of 0.82.

UnitedHealth Group (NYSE:UNH) last posted its quarterly earnings data on Tuesday, October 28th. The healthcare conglomerate reported $2.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.87 by $0.05. UnitedHealth Group had a net margin of 4.04% and a return on equity of 19.23%. The company had revenue of $113.16 billion for the quarter, compared to the consensus estimate of $113.19 billion. During the same quarter last year, the firm posted $7.15 earnings per share. The firm’s revenue was up 12.2% compared to the same quarter last year. As a group, sell-side analysts predict that UnitedHealth Group will post 29.54 EPS for the current fiscal year.

UnitedHealth Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 16th. Investors of record on Monday, December 8th will be issued a $2.21 dividend. This represents a $8.84 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Monday, December 8th. UnitedHealth Group’s dividend payout ratio is currently 46.14%.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on UNH shares. Cantor Fitzgerald reissued an “overweight” rating and set a $440.00 price target on shares of UnitedHealth Group in a research report on Tuesday, August 26th. Wells Fargo & Company boosted their price target on UnitedHealth Group from $267.00 to $400.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 7th. Jefferies Financial Group boosted their target price on UnitedHealth Group from $317.00 to $409.00 and gave the stock a “buy” rating in a report on Friday, October 17th. UBS Group lifted their price target on UnitedHealth Group from $378.00 to $430.00 and gave the stock a “buy” rating in a research report on Wednesday, October 29th. Finally, JPMorgan Chase & Co. increased their price target on shares of UnitedHealth Group from $310.00 to $425.00 and gave the company an “overweight” rating in a report on Thursday, October 9th. Seventeen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $385.54.

Hedge Funds Weigh In On UnitedHealth Group

Hedge funds have recently modified their holdings of the company. Bayforest Capital Ltd boosted its holdings in shares of UnitedHealth Group by 685.7% in the 1st quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate’s stock worth $29,000 after purchasing an additional 48 shares during the period. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of UnitedHealth Group by 416.7% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 62 shares of the healthcare conglomerate’s stock valued at $32,000 after purchasing an additional 50 shares during the period. LFA Lugano Financial Advisors SA purchased a new stake in shares of UnitedHealth Group in the 2nd quarter worth $25,000. Foster Dykema Cabot & Partners LLC lifted its stake in UnitedHealth Group by 69.4% in the third quarter. Foster Dykema Cabot & Partners LLC now owns 83 shares of the healthcare conglomerate’s stock worth $29,000 after acquiring an additional 34 shares during the period. Finally, 1248 Management LLC bought a new stake in shares of UnitedHealth Group in the 3rd quarter valued at about $29,000. 87.86% of the stock is currently owned by institutional investors.

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.