Investors Buy UnitedHealth Group (UNH) on Weakness on Insider Selling

Traders bought shares of UnitedHealth Group Inc (NYSE:UNH) on weakness during trading hours on Friday after an insider sold shares in the company. $158.89 million flowed into the stock on the tick-up and $111.15 million flowed out of the stock on the tick-down, for a money net flow of $47.74 million into the stock. Of all companies tracked, UnitedHealth Group had the 22nd highest net in-flow for the day. UnitedHealth Group traded down ($0.18) for the day and closed at $265.31Specifically, Director Richard T. Burke sold 20,000 shares of the company’s stock in a transaction dated Wednesday, September 12th. The shares were sold at an average price of $263.41, for a total value of $5,268,200.00. Following the transaction, the director now owns 1,720,112 shares in the company, valued at approximately $453,094,701.92. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Kenneth Irwin Shine sold 177 shares of the company’s stock in a transaction dated Wednesday, July 18th. The stock was sold at an average price of $255.72, for a total transaction of $45,262.44. Following the completion of the transaction, the director now owns 29,053 shares in the company, valued at approximately $7,429,433.16. The disclosure for this sale can be found here. In the last quarter, insiders sold 86,603 shares of company stock worth $22,837,660. 0.87% of the stock is currently owned by company insiders.

Several equities analysts have issued reports on the stock. ValuEngine cut shares of UnitedHealth Group from a “buy” rating to a “hold” rating in a research note on Tuesday, September 11th. Citigroup cut shares of UnitedHealth Group from a “buy” rating to a “neutral” rating and set a $288.00 target price on the stock. in a research note on Monday, September 10th. Morgan Stanley upped their target price on shares of UnitedHealth Group from $278.00 to $305.00 and gave the company an “overweight” rating in a research note on Wednesday, September 5th. Cantor Fitzgerald restated a “buy” rating and set a $300.00 target price on shares of UnitedHealth Group in a research note on Thursday, August 9th. Finally, Leerink Swann restated an “outperform” rating on shares of UnitedHealth Group in a research note on Wednesday, July 18th. Two analysts have rated the stock with a hold rating and twenty-one have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $272.43.

The stock has a market cap of $252.81 billion, a P/E ratio of 26.35, a PEG ratio of 1.56 and a beta of 0.71. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.63.

UnitedHealth Group (NYSE:UNH) last released its quarterly earnings results on Tuesday, July 17th. The healthcare conglomerate reported $3.14 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $3.04 by $0.10. UnitedHealth Group had a net margin of 5.55% and a return on equity of 22.79%. The firm had revenue of $56.09 billion during the quarter, compared to analyst estimates of $56.10 billion. During the same quarter in the prior year, the firm earned $2.46 EPS. The business’s revenue for the quarter was up 12.1% compared to the same quarter last year. analysts predict that UnitedHealth Group Inc will post 12.72 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 18th. Stockholders of record on Friday, September 7th will be given a dividend of $0.90 per share. This represents a $3.60 annualized dividend and a dividend yield of 1.36%. The ex-dividend date is Thursday, September 6th. UnitedHealth Group’s payout ratio is currently 35.75%.

UnitedHealth Group announced that its board has approved a stock buyback plan on Wednesday, June 6th that allows the company to buyback 100,000,000 shares. This buyback authorization allows the healthcare conglomerate to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its shares are undervalued.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Welch Group LLC purchased a new stake in UnitedHealth Group in the 2nd quarter worth approximately $106,000. Blue Chip Partners Inc. purchased a new stake in UnitedHealth Group in the 2nd quarter worth approximately $107,000. Northwest Wealth Management LLC purchased a new stake in UnitedHealth Group in the 2nd quarter worth approximately $117,000. Fort L.P. purchased a new stake in UnitedHealth Group during the 2nd quarter valued at approximately $119,000. Finally, Bamco Inc. NY purchased a new stake in UnitedHealth Group during the 1st quarter valued at approximately $117,000. 85.39% of the stock is owned by hedge funds and other institutional investors.

UnitedHealth Group Company Profile (NYSE:UNH)

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx. 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 for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; and Medicaid plans, Children's Health Insurance Program, and health care programs; and health and dental benefits.

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