There is no doubt that UnitedHealth Group Incorporated (UNH) ticks all the boxes.

UnitedHealth Group Incorporated (NYSE: UNH) stock fell -2.05% on Friday to $512.08 against a previous-day closing price of $522.80. With 2.42 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.9 million shares. During the session, the Healthcare Plans company that operates in wider Healthcare sector, reached to the highest price of $528.01 whereas the lowest price it dropped to was $512.02. The 52-week range on UNH shows that it touched its highest point at $553.29 and its lowest point at $383.12 during that stretch. It currently has a 1-year price target of $579.17. With its current market cap of 480.73 billion, UNH has annualized dividend of $6.60 while the current yield stands at 1.29%. Beta for the stock currently stands at 0.77.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UNH was up-trending over the past week, with a rise of 0.45%, but this was down by -5.97% over a month. Three-month performance surged to 4.57% while six-month performance rose 1.34%. The stock gained 24.19% in the past year, while it has gained 1.98% so far this year. A look at the trailing 12-month EPS for UNH yields 19.14 with Next year EPS estimates of 24.82. For the next quarter, that number is 5.42. This implies an EPS growth rate of 12.80% for this year and 13.53% for next year. EPS is expected to grow by 14.28% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.10%.

Float and Shares Shorts:

At present, 937.00 million UNH shares are outstanding with a float of 929.96 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.68 million, which was 0.61% higher than short shares on Jun 14, 2022. In addition to Sir Andrew Philip Witty as the firm’s CEO & Director, Mr. Dirk C. McMahon serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 89.62% of UNH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.61% of UNH, in contrast to 34.98% held by mutual funds. Shares owned by individuals account for 1.83%. As the largest shareholder in UNH with 8.37% of the stake, The Vanguard Group, Inc. holds 78,267,730 shares worth 78,267,730. A second-largest stockholder of UNH, SSgA Funds Management, Inc., holds 45,871,869 shares, controlling over 4.90% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in UNH, holding 45,518,550 shares or 4.87% stake. With a 2.97% stake in UNH, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 27,775,687 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.24% of UNH stock, is the second-largest Mutual Fund holder. It holds 20,937,580 shares valued at 10.87 billion. American Funds Growth Fund of Ame holds 1.60% of the stake in UNH, owning 14,917,961 shares worth 7.75 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, UNH reported revenue of $80.04B and operating income of $6.84B. Over the past year, revenue came in at $304.58B while operating income stood at $25.34B. It generated $5.07B net income for the quarter, which came to $18.25B over the last twelve months. The EBITDA in the recently reported quarter was $7.64B and diluted EPS was $5.34. EBITDA for the full year was $26.51B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UNH since 26 analysts follow the stock currently. There are 21 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UNH analysts setting a high price target of $632.00 and a low target of $480.00, the average target price over the next 12 months is $585.91. Based on these targets, UNH could surge 23.42% to reach the target high and fall by -6.26% to reach the target low. Reaching the average price target will result in a growth of 14.42% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UNH will report FY 2022 earnings on 01/17/2023. Analysts have provided yearly estimates in a range of $22.15 being high and $21.65 being low. For UNH, this leads to a yearly average estimate of $21.86. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. UnitedHealth Group Incorporated surprised analysts by $0.36 when it reported $5.57 EPS against a consensus estimate of $5.21. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $5.63 and the low estimate is $5.28. The average estimate for the next quarter is thus $5.43.

Summary of Insider Activity:

Insiders traded UNH stock several times over the past three months with 25 Buys and 8 Sells. In these transactions, 145,804 shares were bought while 165,088 shares were sold. The number of buy transactions has increased to 99 while that of sell transactions has risen to 69 over the past year. The total number of shares bought during that period was 293,355 while 818,898 shares were sold.

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