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

UnitedHealth Group Incorporated (NYSE:UNH - Get Free Report)'s share price dropped 22.3% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $453.03 and last traded at $454.31. Approximately 12,439,798 shares changed hands during trading, an increase of 139% from the average daily volume of 5,196,031 shares. The stock had previously closed at $585.04.

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

UnitedHealth Group Dividend Announcement

The firm also recently disclosed 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 is presently 54.19%.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on UNH. StockNews.com upgraded UnitedHealth Group from a "hold" rating to a "buy" rating in a research report on Thursday, January 23rd. Mizuho boosted their price target on shares of UnitedHealth Group from $600.00 to $650.00 and gave the company an "outperform" rating in a report on Wednesday, April 9th. Wells Fargo & Company cut their price objective on shares of UnitedHealth Group from $694.00 to $660.00 and set an "overweight" rating on the stock in a research report on Tuesday, January 28th. Barclays dropped their price target on shares of UnitedHealth Group from $655.00 to $642.00 and set an "overweight" rating on the stock in a research note on Friday, January 17th. Finally, KeyCorp reissued an "overweight" rating and issued a $650.00 price objective on shares of UnitedHealth Group in a 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 stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $632.85.

Hedge Funds Weigh In On UnitedHealth Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Geode Capital Management LLC lifted its stake in UnitedHealth Group by 1.6% in the 4th quarter. Geode Capital Management LLC now owns 19,956,219 shares of the healthcare conglomerate's stock worth $10,068,869,000 after acquiring an additional 319,515 shares in the last quarter. Capital International Investors lifted its position in shares of UnitedHealth Group by 6.2% in the fourth quarter. Capital International Investors now owns 15,616,007 shares of the healthcare conglomerate's stock worth $7,899,905,000 after purchasing an additional 906,365 shares in the last quarter. Norges Bank acquired a new position in UnitedHealth Group in the 4th quarter valued at approximately $6,375,744,000. Northern Trust Corp grew its holdings in shares of UnitedHealth Group by 12.5% during the 4th quarter. Northern Trust Corp now owns 9,503,671 shares of the healthcare conglomerate's stock valued at $4,807,527,000 after acquiring an additional 1,058,488 shares in the last quarter. Finally, Franklin Resources Inc. raised its holdings in shares of UnitedHealth Group by 10.7% during the fourth quarter. Franklin Resources Inc. now owns 8,923,770 shares of the healthcare conglomerate's stock worth $4,514,178,000 after acquiring an additional 861,854 shares in the last quarter. Institutional investors and hedge funds own 87.86% of the company's stock.

UnitedHealth Group Stock Performance

The company has a market capitalization of $417.20 billion, a price-to-earnings ratio of 29.43, a price-to-earnings-growth ratio of 1.37 and a beta of 0.61. The firm has a 50-day simple moving average of $512.95 and a two-hundred day simple moving average of $540.65. The company has a current ratio of 0.83, a quick ratio of 0.91 and a debt-to-equity ratio of 0.74.

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.