UnitedHealth Group (NYSE:UNH) Trading Up 3% – Should You Buy?

UnitedHealth Group Incorporated (NYSE:UNH) shares shot up 3% during trading on Wednesday . The stock traded as high as $503.79 and last traded at $500.15. 3,040,775 shares traded hands during mid-day trading, a decline of 25% from the average session volume of 4,044,084 shares. The stock had previously closed at $485.52.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. StockNews.com upgraded shares of UnitedHealth Group from a “hold” rating to a “buy” rating in a research report on Monday, December 9th. Royal Bank of Canada reduced their price objective on UnitedHealth Group from $615.00 to $595.00 and set an “outperform” rating for the company in a research note on Wednesday, October 16th. TD Cowen upped their target price on shares of UnitedHealth Group from $601.00 to $609.00 and gave the stock a “buy” rating in a report on Friday, October 18th. UBS Group lowered their price target on shares of UnitedHealth Group from $680.00 to $650.00 and set a “buy” rating on the stock in a research report on Wednesday, October 16th. Finally, Stephens boosted their target price on shares of UnitedHealth Group from $605.00 to $675.00 and gave the company an “overweight” rating in a report on Thursday, December 5th. Three analysts have rated the stock with a hold rating, eighteen have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $626.84.

UnitedHealth Group Stock Performance

The company has a market cap of $463.89 billion, a PE ratio of 32.84, a price-to-earnings-growth ratio of 1.53 and a beta of 0.58. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.74. The firm has a fifty day simple moving average of $578.25 and a 200-day simple moving average of $560.35.

UnitedHealth Group (NYSE:UNH) last posted its quarterly earnings data on Tuesday, October 15th. The healthcare conglomerate reported $7.15 EPS for the quarter, beating the consensus estimate of $7.00 by $0.15. UnitedHealth Group had a return on equity of 26.37% and a net margin of 3.63%. The firm had revenue of $100.82 billion during the quarter, compared to the consensus estimate of $99.14 billion. During the same period in the prior year, the business earned $6.56 EPS. The firm’s revenue was up 9.2% compared to the same quarter last year. On average, research analysts forecast that UnitedHealth Group Incorporated will post 27.61 EPS for the current fiscal year.

UnitedHealth Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 17th. Stockholders of record on Monday, December 9th were paid a dividend of $2.10 per share. This represents a $8.40 dividend on an annualized basis and a dividend yield of 1.67%. The ex-dividend date of this dividend was Monday, December 9th. UnitedHealth Group’s dividend payout ratio (DPR) is 54.72%.

Institutional Investors Weigh In On UnitedHealth Group

Several institutional investors have recently made changes to their positions in the stock. Kathleen S. Wright Associates Inc. purchased a new stake in UnitedHealth Group in the 3rd quarter valued at approximately $27,000. Global Wealth Strategies & Associates boosted its stake in shares of UnitedHealth Group by 152.4% during the third quarter. Global Wealth Strategies & Associates now owns 53 shares of the healthcare conglomerate’s stock valued at $31,000 after acquiring an additional 32 shares during the last quarter. West Financial Advisors LLC purchased a new position in UnitedHealth Group in the 3rd quarter valued at about $32,000. Quarry LP raised its position in shares of UnitedHealth Group by 132.1% in the second quarter. Quarry LP now owns 65 shares of the healthcare conglomerate’s stock valued at $33,000 after buying an additional 37 shares during the last quarter. Finally, VitalStone Financial LLC grew its stake in UnitedHealth Group by 600.0% in the 2nd quarter. VitalStone Financial LLC now owns 70 shares of the healthcare conglomerate’s stock worth $36,000 after acquiring an additional 60 shares during the period. 87.86% of the stock is currently owned by hedge funds and other institutional investors.

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.