Alden Global Capital LLC has acquired a stake in UnitedHealth Group Incorporated (NYSE: UNH), purchasing 23,655 shares valued at approximately $7.38 million. This acquisition occurred during the second quarter of the fiscal year, as disclosed in a recent filing with the U.S. Securities and Exchange Commission (SEC). UnitedHealth Group now represents about 4.5% of Alden Global Capital’s investment portfolio, making it the firm’s ninth largest holding.
The healthcare conglomerate has attracted interest from several other institutional investors as well. Notably, Norges Bank initiated a new position in UnitedHealth Group in the second quarter, investing around $3.84 billion. Dodge & Cox significantly increased its stake by 117.7%, now holding 8,750,560 shares worth approximately $2.73 billion after acquiring an additional 4,730,192 shares. Similarly, Wellington Management Group LLP raised its position by 10.6%, now owning 25,847,940 shares valued at about $13.54 billion.
In addition, Amundi expanded its holdings by 33.8% during the same period, now owning 6,191,871 shares worth around $1.90 billion. Natixis experienced a dramatic increase in its holdings, raising its stake by 396.6% to 1,507,698 shares, valued at $470.36 million. Collectively, hedge funds and institutional investors currently hold approximately 87.86% of UnitedHealth Group’s stock.
Analysts Optimistic About UnitedHealth Group’s Growth
A number of research firms have recently revised their target prices for UnitedHealth Group. Barclays raised its price objective from $352.00 to $386.00, assigning an “overweight” rating. Meanwhile, Mizuho increased its target from $300.00 to $430.00, also issuing an “outperform” rating. Sanford C. Bernstein lifted its target price to $440.00, while KeyCorp raised its target from $350.00 to $400.00.
Furthermore, Jefferies Financial Group adjusted its price objective from $317.00 to $409.00, rating the stock as a “buy.” Currently, seventeen equity research analysts have rated UnitedHealth Group with a Buy rating, nine have issued a Hold rating, and three have given a Sell rating. The consensus rating is a “Hold” with an average target price of $385.54.
UnitedHealth Group’s Financial Performance and Dividend Announcement
On October 28, 2023, UnitedHealth Group released its earnings report, revealing earnings per share (EPS) of $2.92 for the quarter, exceeding the consensus estimate of $2.87 by $0.05. The company reported revenue of $113.16 billion, slightly below expectations of $113.19 billion. Compared to the previous year, revenue increased by 12.2%. Analysts predict that UnitedHealth Group will post an EPS of $29.54 for the current fiscal year.
Additionally, UnitedHealth Group announced a quarterly dividend of $2.21 per share, set to be paid on December 16, 2023. The ex-dividend date is December 8, 2023, meaning shareholders on record by that date will receive the dividend. This results in an annualized dividend of $8.84 and a dividend 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, structured into four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The company provides a wide array of health benefit plans and services to various sectors, including national employers, public sector employers, and individuals.
For investors and stakeholders seeking further information on UnitedHealth Group and its latest developments, regular updates can be found through MarketBeat and other financial platforms.
