UnitedHealth Group (NYSE:UNH) Stock Price Down 22% After Earnings Miss

Shares of UnitedHealth Group Incorporated (NYSE:UNH) were down 22% during trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $447.10 and last traded at $456.10. Approximately 29,048,929 shares changed hands during trading, an increase of 561% from the average daily volume of 4,391,399 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). The firm had revenue of $109.58 billion for the quarter, compared to analysts’ expectations of $111.56 billion. UnitedHealth Group had a net margin of 3.60% and a return on equity of 26.69%. During the same period in the prior year, the business posted $6.91 EPS.

UnitedHealth Group Dividend Announcement

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

Wall Street Analyst Weigh In

Several equities research analysts have commented on UNH shares. Truist Financial boosted their target price on UnitedHealth Group from $610.00 to $660.00 and gave the stock a “buy” rating in a report on Friday, April 11th. Hsbc Global Res raised shares of UnitedHealth Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 10th. Wells Fargo & Company dropped their target price on shares of UnitedHealth Group from $694.00 to $660.00 and set an “overweight” rating on the stock in a research note on Tuesday, January 28th. Cantor Fitzgerald restated an “overweight” rating and issued a $700.00 price objective on shares of UnitedHealth Group in a report on Friday, January 17th. Finally, Mizuho lifted their target price on UnitedHealth Group from $600.00 to $650.00 and gave the stock an “outperform” rating in a report on Wednesday, April 9th. Twenty-one investment analysts have rated the stock with a buy rating and three have issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $632.85.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Financial Management Professionals Inc. boosted its holdings in shares of UnitedHealth Group by 0.8% in the 1st quarter. Financial Management Professionals Inc. now owns 2,224 shares of the healthcare conglomerate’s stock worth $1,165,000 after purchasing an additional 17 shares during the period. Western Pacific Wealth Management LP boosted its stake in shares of UnitedHealth Group by 2.2% during the fourth quarter. Western Pacific Wealth Management LP now owns 902 shares of the healthcare conglomerate’s stock valued at $456,000 after purchasing an additional 19 shares in the last quarter. MCF Advisors LLC raised its position in shares of UnitedHealth Group by 0.8% in the 4th quarter. MCF Advisors LLC now owns 2,578 shares of the healthcare conglomerate’s stock worth $1,304,000 after acquiring an additional 20 shares in the last quarter. Axiom Financial Strategies LLC boosted its holdings in shares of UnitedHealth Group by 3.6% in the 4th quarter. Axiom Financial Strategies LLC now owns 575 shares of the healthcare conglomerate’s stock valued at $291,000 after buying an additional 20 shares in the last quarter. Finally, Richwood Investment Advisors LLC grew its holdings in UnitedHealth Group by 0.4% in the fourth quarter. Richwood Investment Advisors LLC now owns 5,247 shares of the healthcare conglomerate’s stock worth $2,654,000 after purchasing an additional 20 shares during the last quarter. 87.86% of the stock is currently owned by institutional investors.

UnitedHealth Group Stock Down 22.0 %

The company has a 50-day moving average of $514.51 and a 200-day moving average of $541.53. 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 company has a current ratio of 0.83, a quick ratio of 0.91 and a debt-to-equity ratio of 0.74.

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.