Stock FAQs

why did the unitedheath group stock dip

by Sonia Vandervort Published 3 years ago Updated 2 years ago
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Does UnitedHealth Group stock pay dividends?

Find a history of UnitedHealth Group dividend payments and stock exchange ratio information for acquisitions. UnitedHealth Group began paying annual dividends in 1990, and moved to a quarterly dividend in June 2010.

Who are the companies that UnitedHealth Group has bought?

Pendal Group Ltd Buys BioNTech SE, UnitedHealth Group Inc, Linde PLC, Sells MKS Instruments ... Distillate Capital Partners LLC Buys Anthem Inc, Automatic Data Processing Inc, Icon PLC, Sells ... UnitedHealth Group, Inc. engages in the provision of health care coverage, software, and data consultancy services.

What does UnitedHealth Group do for a living?

UnitedHealth Group, Inc. engages in the provision of health care coverage, software, and data consultancy services. It operates through the following segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx.

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Why did UNH go down?

Earnings from operations worth $396 million were down 81.1% year over year due to the impact of higher COVID-19 testing and care costs, partially mitigated by higher revenues.

Is UnitedHealth stock a good buy?

Valuation metrics show that UnitedHealth Group Incorporated may be undervalued. Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of UNH, demonstrate its potential to outperform the market. It currently has a Growth Score of A.

When was the last time UnitedHealthcare stock split?

2005UnitedHealth's last stock split was in 2005 However, there have been no splits since then.

Is UnitedHealth Group undervalued?

Unitedhealth Group has a current Real Value of $452.5 per share. The regular price of the company is $495.64. At this time, the company appears to be overvalued....0.83.LowEstimated ValueHigh493.59495.54497.49

Is UNH stock a buy now?

So if shares break out past the 422.63 buy point, is UNH stock a buy? The answer is a cautious yes. It is a well-formed base. And the handle has so far shown healthy support at its 10-week moving average.

Is United Health a buy or sell?

UnitedHealth Group has received a consensus rating of Moderate Buy. The company's average rating score is 2.91, and is based on 18 buy ratings, 3 hold ratings, and no sell ratings.

How many times has UNH stock split?

UnitedHealth Group (UNH) has 5 splits in our UnitedHealth Group stock split history database.

Does United Healthcare stock pay a dividend?

UnitedHealth Group began paying annual dividends in 1990, and moved to a quarterly dividend in June 2010.

Which stock has the highest dividend?

9 highest dividend-paying stocks in the S&P 500:AT&T Inc. (T)Williams Cos. Inc. (WMB)Devon Energy Corp. (DVN)Oneok Inc. (OKE)Simon Property Group Inc. (SPG)Kinder Morgan Inc. (KMI)Vornado Realty Trust (VNO)Altria Group Inc. (MO)More items...

Is UNH a good long term stock?

(NYSE:UNH) delivered a 6.51% return since the beginning of the year, while its 12-month returns are up by 37.13%. The stock closed at $534.82 per share on April 15, 2022. "UnitedHealth Group contributed to performance during the quarter as the Company's longterm, mid-teens earnings growth algorithm remained intact.

Why is UnitedHealth Group successful?

UnitedHealth Group primarily generates revenue through its premiums, its fees for various medical and consulting services, and sales of medical products and services. It also generates revenue from investments and other income sources, which we will not cover here.

2020 Results

Segmental Performances

Revenues of $257.1 billion improved 6.2% year over year. Earnings per share of $16.88 grew 11.7% year over year and came ahead of the company’s previously provided guidance of $16.50-$16.75.

Decline in Membership Enrollment

In the reported quarter, the company’s health benefits segment UnitedHealthcare generated revenues worth $50.3 billion, up 4.4% year over year. The rise in revenues was attributable to solid growth witnessed in serving community and senior programs, partly offset by a decline in commercial enrollment.

2021 Guidance Reaffirmed

The company served 48.44 million people in the quarter, down 0.7 million year over year due to lower member enrollment in the Commercial business.

Dividend History

The company re-established its full-year earnings per share outlook for 2021. While net earnings are expected between $16.90 and $17.40, adjusted net earnings are forecasted in the range of $17.75 to $18.25.

Stock Basis: Acquisitions & Splits

UnitedHealth Group began paying annual dividends in 1990, and moved to a quarterly dividend in June 2010.

Strong Third Quarter Results

Some UnitedHealth Group shareholders were shareholders in predecessor companies that we acquired in tax-free stock-for-stock exchange transactions. In these cases, the shareholder's cost basis in the predecessor company generally carries forward to their UnitedHealth Group shares.

Five Growth Pillars

UnitedHealth reported good third quarter results, posted on Oct. 16. Revenue rose 12.4% from last year to $56.556 billion. The Premiums unit grew at the quickest pace, up 12.8% to $44.613 billion. UNH earned $3.188 billion, up 28.3% from last year.

Valuation

UNH centers its business around five growth pillars. In-care delivery (1) aligns data analytics with the company’s knowledge of the local market. By matching doctors with patients, patients get the best care possible.

Your Takeaway

UnitedHealth’s strong, consistent growth suggests a five-year DCF growth exit model would derive a fair value on the share price. If the company delivers steady revenue growth in the 8% - 9% range, at a discount rate of 8.5% - 9.5%, shares would have an upside of 10%:

Summary

The growing need from seniors for healthcare will continue in 2019. UnitedHealth rolled out new products, continued on an impressive level of operating efficiency, and has the momentum that will sustain the company’s modest 1.34% dividend yield and business growth over the next few years.

The Dividend Is Still In The Early Innings Of Growth

UnitedHealth Group's sub-30% adjusted diluted EPS payout ratio will carry over from 2021 into this year, which should translate into robust future dividend growth.

A fundamentally sound business

UnitedHealth Group's annual dividend growth rate of 18.7% over the last five years is certainly impressive. But is such strong growth sustainable in the years ahead? To answer this question, let's take both a surface-level look at the stock's dividend yield compared to its industry and a deeper dive into its dividend payout ratios.

Risks To Consider

Processing nearly $1 trillion in gross billed charges in 2020 (page 1 of UnitedHealth Group's most recent 10-K ), UnitedHealth Group is the largest health insurer in the world with a $440 billion market cap. The company's two businesses include Optum and UnitedHealthcare.

A World-Class Stock Trading At A Discount

UnitedHealth Group is likely to continue doing well in the future. But that doesn't mean the company is without its share of risks. That's why I'll be going over a few key risks surrounding the stock as outlined in its most recent 10-K.

Summary: Buy UnitedHealth Group Before Everyone Else Does

UnitedHealth Group is one of the highest quality stocks in the world. However, investors must avoid significantly overpaying for the stock to maximize their chances of a successful investment.

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