Fintel reports that on July 14, 2023, Morgan Stanley reiterated coverage of Unitedhealth Group (NYSE:UNH) with a Overweight recommendation.
Analyst Price Forecast Suggests 33.14% Upside
As of July 6, 2023, the average one-year price target for Unitedhealth Group is 596.12. The forecasts range from a low of 519.14 to a high of $682.50. The average price target represents an increase of 33.14% from its latest reported closing price of 447.75.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Unitedhealth Group is 359,839MM, an increase of 7.11%. The projected annual non-GAAP EPS is 25.20.
Unitedhealth Group Declares $1.88 Dividend
On June 7, 2023 the company declared a regular quarterly dividend of $1.88 per share ($7.52 annualized). Shareholders of record as of June 19, 2023 received the payment on June 27, 2023. Previously, the company paid $1.65 per share.
At the current share price of $447.75 / share, the stock's dividend yield is 1.68%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.43%, the lowest has been 1.08%, and the highest has been 2.22%. The standard deviation of yields is 0.19 (n=236).
The current dividend yield is 1.29 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.30. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.32%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4921 funds or institutions reporting positions in Unitedhealth Group. This is a decrease of 29 owner(s) or 0.59% in the last quarter. Average portfolio weight of all funds dedicated to UNH is 1.21%, an increase of 5.52%. Total shares owned by institutions increased in the last three months by 4.05% to 998,615K shares. 
The put/call ratio of UNH is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Ofi Invest Asset Management holds 62,049K shares representing 6.66% ownership of the company.
Price T Rowe Associates holds 31,592K shares representing 3.39% ownership of the company. In it's prior filing, the firm reported owning 31,954K shares, representing a decrease of 1.15%. The firm decreased its portfolio allocation in UNH by 17.99% over the last quarter.
Capital World Investors holds 29,386K shares representing 3.16% ownership of the company. In it's prior filing, the firm reported owning 30,693K shares, representing a decrease of 4.45%. The firm decreased its portfolio allocation in UNH by 17.25% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 28,925K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 28,401K shares, representing an increase of 1.81%. The firm decreased its portfolio allocation in UNH by 16.17% over the last quarter.
Wellington Management Group Llp holds 24,079K shares representing 2.59% ownership of the company. In it's prior filing, the firm reported owning 23,939K shares, representing an increase of 0.58%. The firm decreased its portfolio allocation in UNH by 87.49% over the last quarter.
Unitedhealth Group Background Information
(This description is provided by the company.)
UnitedHealth Group is a diversified health care company dedicated to helping people live healthier lives and helping make the health system work better for everyone. UnitedHealth Group offers a broad spectrum of products and services through two distinct platforms: UnitedHealthcare, which provides health care coverage and benefits services; and Optum, which provides information and technology-enabled health services.
Additional reading:
- UnitedHealth Group Reports Second Quarter 2023 Results
- Amended and Restated Indenture, dated as of April 27, 2023, between UnitedHealth Group Incorporated and Wilmington Trust Company, as successor trustee.
- Supplemental Indenture, dated as of April 18, 2023, between UnitedHealth Group Incorporated and U.S. Bank Trust Company, National Association, as trustee, relating to the 6.875% Senior Notes due 2038.
- UnitedHealth Group Reports First Quarter 2023 Results
- Officers’ Certificate and Company Order, dated March 28, 2023, relating to the 4.250% Notes due January 15, 2029, pursuant to Sections 201, 301 and 303 of the Indenture (including the form of 4.250% Notes due January 15, 2029)
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
