Will UnitedHealth Group Incorporated (UNH) Defy Bears?

UnitedHealth Group Incorporated (UNH) will probably climb 26.52 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $335price as 12-month high target. This represents a whopping 36.81 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $310, which represents a return potential of 26.6 percent when compared to the closing price of the stock of $244.87 on Thursday, January 10. The lowest price target for the stock is $218 — slightly more than -10.97 percent from UNH’s current share price.

The stock is currently hovering around the first support level of $242.47. Below this, the next support is placed in the zone of $240.08. Till the time, the UNH stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 41.96 on daily chart, which may remain a cause for concern. If the price breaks below $240.08 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $246.2 mark may result into a pull-back move towards $247.54 level.

On 10th of January, UnitedHealth Group Incorporated (NYSE:UNH) shares ended higher after a volatile session. The shares accumulated 1.23 points or 0.5 percent at $244.87 with a light trade volume of 3.325 million shares. After opening the session at $242.08, the shares went as high as $245.14 and as low as $241.41, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $239 billion and now has 977.57 million shares outstanding. UnitedHealth Group Incorporated (UNH) stock has lost -8.13 percent of market value in 21 trading days.

UNH stock has a trailing 3-year beta of 0.88, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $11.53 a share in the trailing twelve months. The stock’s value has fallen -1.71 percent year to date (YTD) against a rise of 8.41 percent in 12 month’s time. The company’s shares still trade -14.96 percent away from its 1-year high of $287.94 and 17.45 percent up from 52-week low of $208.48. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of UnitedHealth Group Incorporated (UNH) are trading at a P/E ratio of 23.81 times earnings reported for the past 12 months. The industry UNH operates in has an average P/E of 22.23. Its P/E ratio went as low as 10.27X and as high as 22.08 over the 5-year span. Further, it is sporting a 1.09 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.87. 0 percent is the gross profit margin for UnitedHealth Group Incorporated and operating margin sits at 7.7 percent. Along with this, the net profit margin is 5.7 percent.

Let’s take a look at some insider activity at UnitedHealth Group Incorporated (NYSE:UNH) and see the pattern. The earliest insider trade took place on 11/28/2018. Burke Richard T parted with a total of 6.09 thousand shares of company at average share price of $281.72. The total for the sales was set at $1.72 million. After this transaction, the Director account balance stood at 1.8 million shares. The stock lost -13.52 percent since that insider sale. On 11/28/2018, Wilensky Gail R, Director, sold 5.88 thousand shares at a price per share of $279.77. This removed 1.65 million shares from the insider’s fortune and the stock saw a -12.91 percent retreat in value since the news became public. This transaction left 59.44 thousand shares in the Director account.

On 11/09/2018, Director Shine Kenneth Irwin performed a sale transaction worth $44.8 thousand. This sale at $274.83 each has eliminated 0.16 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -11.35 percent decrease since the transaction was reported. The insider now is left with 29.15 thousand shares remaining in the account. Nelson Steven H, who performs the EVP & CEO, UnitedHealthcare job, sold 8.14 thousand shares for $2.16 million. The disposal occurred on 09/13/2018 was priced at $265 per share. The share price plunged -8.06 percent since the reporting date. Nelson Steven H now left with a stake of 22.5 thousand UNH stock worth $5.51 million after the insider selling.