Alden Global Capital LLC has made a significant investment in UnitedHealth Group Incorporated (NYSE: UNH), acquiring a total of 23,655 shares valued at approximately $7.38 million. This transaction was disclosed in the firm’s recent filing with the Securities and Exchange Commission (SEC). UnitedHealth Group now constitutes about 4.5% of Alden Global Capital’s investment portfolio, positioning it as the ninth largest position within the firm’s holdings.
Other institutional investors have also adjusted their stakes in UnitedHealth Group. Norges Bank, for instance, entered a new position worth approximately $3.84 billion during the second quarter. Meanwhile, Dodge & Cox increased its stake by an impressive 117.7%, now holding 8,750,560 shares valued at $2.73 billion after acquiring an additional 4,730,192 shares.
Wellington Management Group LLP also increased its position by 10.6%, now owning 25,847,940 shares valued at $13.54 billion. In another notable move, Amundi raised its holdings by 33.8%, owning 6,191,871 shares worth $1.90 billion after purchasing an additional 1,565,245 shares. Natixis dramatically increased its holdings by 396.6% during the same period, now possessing 1,507,698 shares valued at $470.36 million. Currently, approximately 87.86% of UnitedHealth Group’s stock is owned by hedge funds and other institutional investors.
Analysts Upgrade UnitedHealth Group Ratings
Several research firms have recently revised their ratings and price targets for UnitedHealth Group. Barclays raised its price objective from $352.00 to $386.00, designating the stock as “overweight.” Similarly, Mizuho increased their price target from $300.00 to $430.00 and assigned an “outperform” rating.
Sanford C. Bernstein also adjusted their target price from $433.00 to $440.00, maintaining an “outperform” rating. KeyCorp raised its target from $350.00 to $400.00, while Jefferies Financial Group increased its price objective from $317.00 to $409.00 and rated the stock as a “buy.”
Currently, seventeen equity research analysts have rated the stock as a “Buy,” nine have issued “Hold” ratings, and three have given “Sell” ratings. According to MarketBeat, UnitedHealth Group holds a consensus rating of “Hold” and an average price target of $385.54.
Recent Financial Performance and Dividend Announcement
UnitedHealth Group’s shares opened at $341.83 recently. The company has a debt-to-equity ratio of 0.71, with a quick ratio and current ratio both standing at 0.82. Its 50-day simple moving average is $339.84, while the 200-day simple moving average is $316.91. In the past year, the stock reached a low of $234.60 and a high of $606.36. The company has a market capitalization of $309.65 billion, a price-to-earnings ratio of 17.84, and a P/E/G ratio of 2.20.
UnitedHealth Group reported its earnings results on October 28, 2023, revealing earnings per share (EPS) of $2.92, surpassing consensus estimates of $2.87. The company generated $113.16 billion in revenue for the quarter, slightly below the expected $113.19 billion. Year-over-year, revenue increased by 12.2%, compared to $7.15 EPS in the same quarter last year. Analysts predict that UnitedHealth Group will report an EPS of 29.54 for the current fiscal year.
In another development, the company declared a quarterly dividend of $2.21 per share, set to be paid on December 16, 2023. Stockholders of record on December 8, 2023, will be eligible for this dividend. This equates to an annualized dividend of $8.84, representing a yield of 2.6%. The company’s dividend payout ratio currently stands at 46.14%.
UnitedHealth Group operates as a diversified healthcare company in the United States, functioning across four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment provides consumer-oriented health benefit plans and services for various employers and individuals, along with health care coverage for the economically disadvantaged and medically underserved populations.
