UnitedHealth Group (NYSE:UNH) Trading 1.1% Higher – Should You Buy?

UnitedHealth Group Incorporated (NYSE:UNH) shares traded up 1.1% during trading on Thursday . The stock traded as high as $315.29 and last traded at $314.10. 4,303,604 shares traded hands during mid-day trading, a decline of 39% from the average session volume of 7,093,345 shares. The stock had previously closed at $310.56.

Analyst Ratings Changes

Several research analysts have recently commented on the company. KeyCorp reduced their target price on UnitedHealth Group from $450.00 to $400.00 and set an “overweight” rating on the stock in a report on Monday, June 2nd. TD Securities reissued a “hold” rating and issued a $308.00 target price (down from $520.00) on shares of UnitedHealth Group in a report on Monday, May 19th. Wells Fargo & Company reaffirmed an “overweight” rating on shares of UnitedHealth Group in a report on Friday, June 6th. HSBC reaffirmed a “reduce” rating and set a $270.00 price objective (down previously from $490.00) on shares of UnitedHealth Group in a report on Wednesday, May 21st. Finally, Royal Bank of Canada reduced their price objective on UnitedHealth Group from $525.00 to $355.00 and set an “outperform” rating on the stock in a report on Friday, May 16th. One analyst has rated the stock with a sell rating, nine have given a hold rating and sixteen have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $426.52.

UnitedHealth Group Stock Performance

The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.91 and a current ratio of 0.83. The stock’s 50-day moving average is $386.66 and its 200 day moving average is $474.19. The firm has a market cap of $284.28 billion, a P/E ratio of 20.22, a PEG ratio of 1.37 and a beta of 0.45.

UnitedHealth Group (NYSE:UNH) last released its quarterly earnings data on Thursday, April 17th. The healthcare conglomerate reported $7.20 EPS for the quarter, missing analysts’ consensus estimates of $7.29 by ($0.09). UnitedHealth Group had a net margin of 3.60% and a return on equity of 26.69%. The firm had revenue of $109.58 billion during the quarter, compared to the consensus estimate of $111.56 billion. During the same quarter in the prior year, the company earned $6.91 EPS. On average, research analysts predict that UnitedHealth Group Incorporated will post 29.54 earnings per share for the current year.

UnitedHealth Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 24th. Shareholders of record on Monday, June 16th will be issued a dividend of $2.21 per share. This represents a $8.84 dividend on an annualized basis and a yield of 2.82%. The ex-dividend date is Monday, June 16th. This is a boost from UnitedHealth Group’s previous quarterly dividend of $2.10. UnitedHealth Group’s dividend payout ratio is 37.02%.

Insiders Place Their Bets

In other news, Director Timothy Patrick Flynn bought 1,533 shares of the stock in a transaction on Wednesday, May 14th. The stock was purchased at an average price of $320.80 per share, for a total transaction of $491,786.40. Following the acquisition, the director now owns 6,033 shares in the company, valued at approximately $1,935,386.40. This trade represents a 34.07% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Patrick Hugh Conway sold 589 shares of the stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $305.00, for a total value of $179,645.00. Following the transaction, the chief executive officer now owns 10,398 shares of the company’s stock, valued at approximately $3,171,390. This trade represents a 5.36% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders bought 109,408 shares of company stock worth $31,607,768. Corporate insiders own 0.28% of the company’s stock.

Hedge Funds Weigh In On UnitedHealth Group

Hedge funds have recently modified their holdings of the stock. NewSquare Capital LLC acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $25,000. Marshall & Sterling Wealth Advisors Inc. acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $26,000. Hurley Capital LLC acquired a new stake in UnitedHealth Group in the 4th quarter valued at about $28,000. Bayforest Capital Ltd lifted its stake in UnitedHealth Group by 685.7% in the 1st quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate’s stock valued at $29,000 after purchasing an additional 48 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd acquired a new stake in UnitedHealth Group during the fourth quarter worth approximately $30,000. Institutional investors own 87.86% of the company’s stock.

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.