UnitedHealth Group Earnings and Stake Changes: Q4 Insights
During the fourth quarter, Diversify Advisory Services LLC reduced its stake in UnitedHealth Group Incorporated by 7.0%, according to a recent filing with the Securities and Exchange Commission. After the sale, the firm held 54,743 shares of the healthcare company's stock, valued at approximately $18.1 million.
This activity reflects trends among other institutional investors. North Capital Inc. increased its holdings by 16.2% in the third quarter. Similarly, Sunflower Bank N.A. and Axis Wealth Partners LLC grew their shares by 1.5% and 1.7%, respectively. Abound Wealth Management reported a 13.5% increase, while Cooper Financial Group recorded a 0.7% gain in the fourth quarter. Institutional investors collectively own 87.86% of UnitedHealth Group's shares.
On the stock exchange, UnitedHealth Group opened at $304.63. The stock has experienced fluctuations, with prices ranging from a low of $234.60 to a high of $606.36 over the past year. Financially, the company maintains a debt-to-equity ratio of 0.72 and a quick and current ratio of 0.79. With a market capitalization of $276.51 billion, the firm's P/E ratio stands at 23.10, accompanied by a P/E/G ratio of 1.41 and a beta of 0.40.
In its latest quarterly earnings release on January 27th, UnitedHealth Group reported earnings per share (EPS) of $2.11, slightly surpassing the $2.09 consensus estimate. The company's return on equity registered at 14.79%, while its net margin was noted at 2.69%. Revenue reached $113.73 billion, marginally exceeding analysts' projections of $113.38 billion. Notably, there was a 12.3% year-over-year increase in revenue, and the firm has set a 2026 EPS guidance starting at $17.750.
The firm recently declared a quarterly dividend of $2.21 per share on March 17th, amounting to an annual payout of $8.84 per share with a 2.9% yield. The dividend payout ratio currently holds at 67.02%, indicating a stable return for shareholders.
Recent weeks have seen adjustments in price targets and ratings from financial analysts. Barclays reduced its price target from $391.00 to $327.00, retaining an "overweight" rating. HSBC upgraded UnitedHealth from "reduce" to "hold" with a target of $300.00. Meanwhile, the Royal Bank of Canada and Leerink Partners lowered their targets to $361.00 and $345.00, respectively, both maintaining an "outperform" rating. MarketBeat reports the company has a consensus "Moderate Buy" rating, with an average price target of $363.42.
UnitedHealth Group, headquartered in Minnetonka, Minnesota, operates predominantly through UnitedHealthcare and Optum. UnitedHealthcare focuses on health plans and provider management, while Optum offers comprehensive health services internationally. Serving various sectors, including individual and employer-based plans as well as public programs like Medicare and Medicaid, UnitedHealth Group was founded in 1977 and continues to expand its global footprint in diversified healthcare and benefits services.