UnitedHealth Group (NYSE:UNH) Trading 1.3% Higher – Still a Buy?

Shares of UnitedHealth Group Incorporated (NYSE:UNH) were up 1.3% during trading on Friday . The stock traded as high as $496.46 and last traded at $495.56. Approximately 2,227,247 shares changed hands during trading, a decline of 45% from the average daily volume of 4,078,607 shares. The stock had previously closed at $489.25.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on UNH shares. Bank of America dropped their price target on UnitedHealth Group from $675.00 to $650.00 and set a “buy” rating on the stock in a report on Wednesday, October 16th. StockNews.com upgraded UnitedHealth Group from a “hold” rating to a “buy” rating in a research report on Monday, December 9th. Cantor Fitzgerald raised their target price on shares of UnitedHealth Group from $591.00 to $644.00 and gave the stock an “overweight” rating in a report on Wednesday, October 16th. HSBC downgraded shares of UnitedHealth Group from a “buy” rating to a “hold” rating in a research report on Thursday, October 17th. Finally, Barclays increased their target price on UnitedHealth Group from $603.00 to $655.00 and gave the company an “overweight” rating in a report on Wednesday, November 27th. Three analysts have rated the stock with a hold rating, eighteen have given a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat.com, UnitedHealth Group has a consensus rating of “Moderate Buy” and an average target price of $626.84.

UnitedHealth Group Price Performance

The firm has a market capitalization of $459.04 billion, a price-to-earnings ratio of 32.50, a PEG ratio of 1.53 and a beta of 0.58. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.91 and a quick ratio of 0.91. The stock’s 50 day moving average price is $574.25 and its two-hundred day moving average price is $559.44.

UnitedHealth Group (NYSE:UNH) last announced its earnings results on Tuesday, October 15th. The healthcare conglomerate reported $7.15 earnings per share 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 quarter in the prior year, the company earned $6.56 EPS. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. On average, equities research analysts anticipate that UnitedHealth Group Incorporated will post 27.61 EPS for the current year.

UnitedHealth Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 17th. Investors of record on Monday, December 9th were given a dividend of $2.10 per share. This represents a $8.40 dividend on an annualized basis and a yield of 1.68%. The ex-dividend date of this dividend was Monday, December 9th. UnitedHealth Group’s dividend payout ratio (DPR) is presently 54.72%.

Institutional Investors Weigh In On UnitedHealth Group

Several institutional investors and hedge funds have recently bought and sold shares of UNH. Kathleen S. Wright Associates Inc. bought a new stake in UnitedHealth Group during the 3rd quarter worth about $27,000. Global Wealth Strategies & Associates raised its position in UnitedHealth Group by 152.4% in the 3rd quarter. Global Wealth Strategies & Associates now owns 53 shares of the healthcare conglomerate’s stock worth $31,000 after purchasing an additional 32 shares during the last quarter. West Financial Advisors LLC bought a new stake in shares of UnitedHealth Group during the third quarter worth approximately $32,000. RPg Family Wealth Advisory LLC bought a new position in UnitedHealth Group in the third quarter valued at approximately $37,000. Finally, Quarry LP lifted its stake in shares of UnitedHealth Group by 132.1% in the 2nd quarter. Quarry LP now owns 65 shares of the healthcare conglomerate’s stock valued at $33,000 after purchasing an additional 37 shares during the period. Institutional investors own 87.86% of the company’s stock.

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.