UnitedHealth Group (NYSE:UNH) Stock Price Down 22.3% Following Weak Earnings

Shares of UnitedHealth Group Incorporated (NYSE:UNH) traded down 22.3% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $453.03 and last traded at $454.31. 12,439,798 shares changed hands during mid-day trading, an increase of 139% from the average session volume of 5,196,031 shares. The stock had previously closed at $585.04.

The healthcare conglomerate reported $7.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $7.24 by ($0.04). UnitedHealth Group had a return on equity of 26.69% and a net margin of 3.60%. During the same quarter in the previous year, the company posted $6.91 earnings per share.

UnitedHealth Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 18th. Investors of record on Monday, March 10th were given a dividend of $2.10 per share. This represents a $8.40 dividend on an annualized basis and a dividend yield of 1.84%. The ex-dividend date of this dividend was Monday, March 10th. UnitedHealth Group’s dividend payout ratio (DPR) is currently 54.19%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on UNH shares. Piper Sandler decreased their price objective on UnitedHealth Group from $605.00 to $600.00 and set an “overweight” rating on the stock in a research report on Thursday, January 2nd. Truist Financial increased their target price on shares of UnitedHealth Group from $610.00 to $660.00 and gave the stock a “buy” rating in a report on Friday, April 11th. KeyCorp reissued an “overweight” rating and set a $650.00 price objective on shares of UnitedHealth Group in a research report on Friday, January 17th. Barclays reduced their target price on shares of UnitedHealth Group from $655.00 to $642.00 and set an “overweight” rating for the company in a report on Friday, January 17th. Finally, StockNews.com upgraded UnitedHealth Group from a “hold” rating to a “buy” rating in a research note on Thursday, January 23rd. Twenty-one research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $632.85.

Insiders Place Their Bets

In other news, Director Timothy Patrick Flynn acquired 1,000 shares of UnitedHealth Group stock in a transaction that occurred on Friday, January 17th. The shares were bought at an average cost of $511.57 per share, with a total value of $511,570.00. Following the transaction, the director now directly owns 4,500 shares of the company’s stock, valued at $2,302,065. This trade represents a 28.57 % increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. 0.33% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On UnitedHealth Group

A number of large investors have recently bought and sold shares of the business. Morton Capital Management LLC CA purchased a new stake in shares of UnitedHealth Group during the first quarter valued at $204,000. Tuttle Capital Management LLC grew its position in shares of UnitedHealth Group by 68.5% in the first quarter. Tuttle Capital Management LLC now owns 1,060 shares of the healthcare conglomerate’s stock valued at $555,000 after purchasing an additional 431 shares during the period. Asio Capital LLC increased its position in shares of UnitedHealth Group by 5.7% during the first quarter. Asio Capital LLC now owns 15,599 shares of the healthcare conglomerate’s stock worth $8,170,000 after purchasing an additional 848 shares in the last quarter. James Hambro & Partners LLP boosted its position in UnitedHealth Group by 6.4% during the first quarter. James Hambro & Partners LLP now owns 245,642 shares of the healthcare conglomerate’s stock worth $128,646,000 after acquiring an additional 14,784 shares during the last quarter. Finally, Exchange Traded Concepts LLC boosted its stake in UnitedHealth Group by 49.0% during the first quarter. Exchange Traded Concepts LLC now owns 2,827 shares of the healthcare conglomerate’s stock worth $1,481,000 after buying an additional 930 shares during the last quarter. Institutional investors own 87.86% of the company’s stock.

UnitedHealth Group Stock Down 22.1 %

The firm’s fifty day simple moving average is $516.05 and its two-hundred day simple moving average is $542.41. The company has a current ratio of 0.83, a quick ratio of 0.91 and a debt-to-equity ratio of 0.74. The company has a market capitalization of $416.76 billion, a price-to-earnings ratio of 29.31, a price-to-earnings-growth ratio of 1.37 and a beta of 0.61.

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.