UnitedHealth Group (NYSE:UNH) Shares Gap Down on Disappointing Earnings

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $585.04, but opened at $481.95. UnitedHealth Group shares last traded at $466.92, with a volume of 7,128,580 shares.

The healthcare conglomerate reported $7.20 earnings per share for the quarter, missing the consensus estimate of $7.29 by ($0.09). The business had revenue of $109.58 billion during the quarter, compared to analyst estimates of $111.56 billion. UnitedHealth Group had a net margin of 3.60% and a return on equity of 26.69%. During the same quarter in the prior year, the company earned $6.91 earnings per share.

UnitedHealth Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 18th. Shareholders of record on Monday, March 10th were given a dividend of $2.10 per share. The ex-dividend date was Monday, March 10th. This represents a $8.40 annualized dividend and a yield of 1.84%. UnitedHealth Group's dividend payout ratio (DPR) is presently 54.19%.

Analysts Set New Price Targets

Several analysts have issued reports on UNH shares. Hsbc Global Res upgraded UnitedHealth Group from a "hold" rating to a "strong-buy" rating in a research note on Friday, January 10th. HSBC raised shares of UnitedHealth Group from a "hold" rating to a "buy" rating and set a $595.00 price target on the stock in a report on Friday, January 10th. Piper Sandler reduced their target price on shares of UnitedHealth Group from $605.00 to $600.00 and set an "overweight" rating for the company in a research report on Thursday, January 2nd. Barclays decreased their target price on shares of UnitedHealth Group from $655.00 to $642.00 and set an "overweight" rating on the stock in a research report on Friday, January 17th. Finally, KeyCorp reissued an "overweight" rating and set a $650.00 price target on shares of UnitedHealth Group in a research report on Friday, January 17th. Twenty-one research analysts have rated the stock with a buy rating and three have issued a strong buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and an average target price of $632.85.

Institutional Investors Weigh In On UnitedHealth Group

Large investors have recently added to or reduced their stakes in the business. NewSquare Capital LLC acquired a new position in shares of UnitedHealth Group during the 4th quarter valued at $25,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in UnitedHealth Group in the 4th quarter valued at about $26,000. Hurley Capital LLC bought a new position in UnitedHealth Group in the fourth quarter worth approximately $28,000. AlphaMark Advisors LLC acquired a new position in shares of UnitedHealth Group during the fourth quarter worth approximately $30,000. Finally, Aster Capital Management DIFC Ltd bought a new stake in UnitedHealth Group during the 4th quarter worth approximately $30,000. Institutional investors and hedge funds own 87.86% of the company's stock.

UnitedHealth Group Price Performance

The firm has a market cap of $417.20 billion, a P/E ratio of 29.43, a P/E/G ratio of 1.37 and a beta of 0.61. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.83 and a quick ratio of 0.91. The company has a fifty day moving average of $512.95 and a 200-day moving average of $540.65.

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.