UnitedHealth Group (NYSE:UNH) Shares Gap Down – Should You Sell?

Shares of UnitedHealth Group Incorporated (NYSE:UNH) gapped down before the market opened on Tuesday . The stock had previously closed at $605.40, but opened at $552.02. UnitedHealth Group shares last traded at $552.34, with a volume of 2,932,279 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Wells Fargo & Company lifted their price target on UnitedHealth Group from $525.00 to $630.00 and gave the company an “overweight” rating in a research report on Wednesday, July 17th. KeyCorp initiated coverage on shares of UnitedHealth Group in a research report on Friday, October 11th. They issued an “overweight” rating and a $675.00 price objective for the company. Truist Financial reiterated a “buy” rating and issued a $625.00 target price (down from $640.00) on shares of UnitedHealth Group in a research note on Wednesday. Morgan Stanley decreased their price target on shares of UnitedHealth Group from $615.00 to $610.00 and set an “overweight” rating on the stock in a report on Wednesday. Finally, Cantor Fitzgerald boosted their target price on UnitedHealth Group from $591.00 to $644.00 and gave the stock an “overweight” rating in a research report on Wednesday. One equities research analyst has rated the stock with a hold rating, nineteen have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $615.16.

UnitedHealth Group Stock Up 2.7 %

The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.67. The company has a 50-day simple moving average of $584.21 and a two-hundred day simple moving average of $532.84. The stock has a market cap of $527.55 billion, a P/E ratio of 37.88, a P/E/G ratio of 1.69 and a beta of 0.58.

UnitedHealth Group (NYSE:UNH) last released its quarterly earnings data on Tuesday, October 15th. The healthcare conglomerate reported $7.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.00 by $0.15. UnitedHealth Group had a net margin of 3.66% and a return on equity of 26.55%. The firm had revenue of $100.82 billion for the quarter, compared to analysts’ expectations of $99.14 billion. During the same quarter in the previous year, the company earned $6.56 earnings per share. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. On average, equities analysts forecast that UnitedHealth Group Incorporated will post 27.68 EPS for the current year.

UnitedHealth Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 24th. Investors of record on Monday, September 16th were issued a $2.10 dividend. This represents a $8.40 annualized dividend and a yield of 1.47%. The ex-dividend date was Monday, September 16th. UnitedHealth Group’s dividend payout ratio (DPR) is currently 55.70%.

Institutional Investors Weigh In On UnitedHealth Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Swedbank AB purchased a new position in shares of UnitedHealth Group in the 1st quarter valued at approximately $1,117,462,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in UnitedHealth Group by 107.8% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 2,306,729 shares of the healthcare conglomerate’s stock worth $1,141,113,000 after purchasing an additional 1,196,758 shares during the period. Lone Pine Capital LLC purchased a new position in shares of UnitedHealth Group during the second quarter valued at approximately $480,903,000. Dimensional Fund Advisors LP grew its stake in shares of UnitedHealth Group by 30.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 3,816,254 shares of the healthcare conglomerate’s stock worth $1,942,956,000 after buying an additional 880,183 shares during the last quarter. Finally, Baillie Gifford & Co. boosted its holdings in UnitedHealth Group by 1,125.4% in the second quarter. Baillie Gifford & Co. now owns 894,006 shares of the healthcare conglomerate’s stock worth $455,281,000 after acquiring an additional 821,050 shares in the last quarter. 87.86% of the stock is owned by hedge funds and other institutional investors.

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.