Following Strong Q4 Earnings, Institutional Investors Show Interest In UnitedHealth Group

Recently, UnitedHealth Group (NYSE: UNH) released its fourth-quarter financial results, beating analysts' consensus projections by $0.17 on sales and EPS. With a net margin of 6.21% and a return on equity of 27.04%, the healthcare behemoth bodes well for stakeholders moving forward.

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The rise in institutional investor interest in UnitedHealth's stock following this revelation, with hedge funds leading the way, is one noteworthy development. In fact, data reveals that these funds and other institutional investors currently hold more than 86% of UNH's shares.

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According to the information provided by Luts & Greenleigh Group Inc., Werba Rubin Papier Wealth Management, Acrisure Capital Management LLC, Prostatis Group LLC, and B. Riley Wealth Advisors Inc, have all made big investments in UNH stock in the recent quarter, totaling hundreds of thousands to millions of dollars.

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Despite missing some key benchmarks, such as a growing debt-to-equity ratio of 0.67 and ongoing concerns about reimbursement rates for private Medicare Advantage plans under Medicare For All proposals in Congress, critics are hard-pressed not to see this performance, combined with decreasing Covid-19 caseloads, leading to an upward trend of investment confidence being restored.

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At about $470 per share on Friday, vs a year-high share price of $558.10, there's no doubt that UnitedHealth Group represents a fantastic investment opportunity, especially considering the company's recent impressive growth potential due to aggressive domestic and international development.

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UnitedHealth Group is one of the key players in the healthcare industry to keep an eye on, with a market cap of nearly half a trillion dollars ($438.50 billion), a PE ratio of around 22.18, a PEG ratio of around 1.33, and a beta of less than one, indicating that they are less volatile than market averages.

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UnitedHealth Group Incorporated (NYSE: UNH) is a well-known healthcare firm, and current studies indicate that it will continue to thrive in the next years. On Wednesday, March 29th, Zacks Research issued research outlining their Q1 2023 earnings per share (EPS) forecasts for UnitedHealth Group. The healthcare company is expected to report profits per share of $6.17 for the quarter, up from $6.06 before.

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With Q1 2023 looking promising, Zacks Research has released positive profit predictions for UnitedHealth Group for the entire year. The projections include Q3 2023 earnings of $6.40 per share, Q4 2023 earnings of $6.00 per share, Q1 2024 earnings of $6.71 per share, Q2 2024 earnings of $6.90 per share, Q3 2024 earnings of $7.10 per share, and Q4 2024 earnings of $7.16 per share.

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With Deutsche Bank Aktiengesellschaft rating the company as a "buy" and increasing their price objective from $615 to $617, many other brokerages have lately commented on UNH's prospects for success. UnitedHealth Group's rating has been raised by StockNews.com to "strong-buy" from "buy." Due to events outside of the stock's control, UBS Group has lowered its target price for UnitedHealth Group to a neutral rating of $550, which is acceptable.

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 Finally, Loop Capital raised its target price on shares of UnitedHealth Group from $575 to an even more impressive height of around $590. Stephens reiterated its optimism about UNH's future with an "overweight" rating and set its price objective on shares of UnitedHealth Group to be around the ballpark of approximately $605.

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According to Trade Algo, the company's stock has received buy ratings from twelve more equities research analysts, twelve more have given the store a hold recommendation, and one analyst has given the stock a strong buy rating. The even more astounding average target price of $601.61 goes hand in hand with the consensus rating of "Moderate Buy."

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As demonstrated by its most recent announcement of a quarterly dividend paid at the end of March, UnitedHealth Group Incorporated is also a reliable dividend provider for investors. An annualized dividend yield of 1.40% was paid to shareholders whose shares were recorded on Monday, March 13th, for a dividend payment of $1.65 per share. With a payout ratio of 31.15%, UnitedHealth Group's stock had an ex-dividend date of Friday, March 10.

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UnitedHealth Group continues to be a light in the healthcare industry, excelling for both potential investors and clients. With optimistic estimates for Q1 2023 and beyond and delighted clients who continue to commend its services, UnitedHealth should continue to be an asset not just for those looking to invest financially, but also for those looking for the best healthcare coverage alternatives.

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