Hot Stock to Watch: UnitedHealth Group Incorporated (NYSE:UNH)

Leslie Hanson
October 18, 2018

The key goal of using Perf Month indicator is to evaluate the actual value of shares existing in the stock market. However, to properly examine the value of a high-growth stock such as UnitedHealth Group, we must reflect its earnings growth into the valuation.

Several large investors have recently made changes to their positions in UNH. Janus Henderson Group PLC now owns 3,525,090 shares of the healthcare conglomerate's stock valued at $864,869,000 after buying an additional 1,345,083 shares in the last quarter. Northwest Wealth Management LLC purchased a new position in UnitedHealth Group during the 2nd quarter worth $117,000. WealthPLAN Partners LLC increased its holdings in shares of UnitedHealth Group by 6.0% during the second quarter. UnitedHealth Group has a one year low of $186.00 and a one year high of $272.07. Analysts consider this stock active, since it switched over with 4,006,323 shares as compared to its average volume of 2.56M shares. First Pacific Advisors LLC now owns 4,400 shares of the healthcare conglomerate's stock worth $942,000 after buying an additional 600 shares in the last quarter. Now 0.50% of shares owned by company management and 88.40% of shares possessed by institutional investors.

ING now has price to earning P/E ratio of 8.35 whereas UNH has 24.09 while the forward P/E ratio for the prior stands at 7.42 and for the later it depicts the value of 18.06. Also, EVP D Ellen Wilson sold 15,393 shares of the firm's stock in a transaction dated Friday, August 24th. The shares were sold at an average price of $264.29, for a total value of $4,068,215.97.

Other large investors have also recently bought and sold shares of the company. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 94,568 shares of company stock valued at $24,950,027. Many value shareholders look for stocks with a high percentage of insider ownership, under the theory that when administration are shareholders, they will act in its own self-interest, and create shareholder value in the long-term.

UNH has been the subject of a number of other reports. Finally, Raymond James increased their target price on UnitedHealth Group from $285.00 to $304.00 and gave the company a "strong-buy" rating in a research report on Monday, September 24th. The mare price or price trend does not suggest the suitability of a stock. The stock of UnitedHealth Group Incorporated (NYSE:UNH) earned "Overweight" rating by Morgan Stanley on Wednesday, July 18. UnitedHealth Group presently has a consensus rating of "Buy" and a consensus price target of $286.17. One research analyst has rated the stock with a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the stock.

Shares of UNH traded down $5.27 during trading hours on Wednesday, hitting $267.30. The firm has a market capitalization of $256.06 billion, a P/E ratio of 27.07, a PEG ratio of 1.58 and a beta of 0.73. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.75 and a current ratio of 0.75. ING Group, N.V. has now decrease -28.23% in its stock over the period of 6-months while its rival UnitedHealth Group Incorporated added 9.1% in the previous 6-months. The healthcare conglomerate reported $3.14 EPS for the quarter, topping the 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%.

Total revenue rose 12.4 percent to $56.56 billion, slightly ahead of Wall Street estimates of $56.34 billion. During the same quarter previous year, the business posted $2.66 EPS. The company's revenue was up 12.4% on a year-over-year basis.

UnitedHealth Group Inc., based in Minneapolis, said Tuesday that it now expects per-share earnings of $12.80 this year, up from $11.80 to $12.05. Investors of record on Friday, September 7th were given a $0.90 dividend. On Thursday, September 13 the insider HOOPER MICHELE J sold $1.32M. This represents a $3.60 annualized dividend and a dividend yield of 1.38%. UnitedHealth Group's dividend payout ratio (DPR) is presently 35.75%.

On The Other side UnitedHealth Group Incorporated a U.S. based Company, belongs to Healthcare sector and Health Care Plans industry. It operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx. The division includes health care services for patients, a division for analytics and information technology and a pharmaceutical benefits management (PBM) business. Traditionally, RSI readings greater than the 70 level are considered to be in overbought territory, and RSI readings lower than the 30 level are considered to be in oversold territory.

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