Unusual Put Option Trade in UnitedHealth Worth $2,041.25K

On May 17, 2023 at 14:20:21 ET an unusually large $2,041.25K block of Put contracts in Unitedhealth Group (UNH) was sold, with a strike price of $520.00 / share, expiring in 2 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.36 sigmas above the mean, placing it in the 89.80th percentile of all recent large trades made in UNH options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 4910 funds or institutions reporting positions in Unitedhealth Group. This is a decrease of 21 owner(s) or 0.43% in the last quarter. Average portfolio weight of all funds dedicated to UNH is 1.27%, a decrease of 6.17%. Total shares owned by institutions increased in the last three months by 3.62% to 997,704K shares. The put/call ratio of UNH is 0.78, indicating a bullish outlook.

Analyst Price Forecast Suggests 26.76% Upside

As of May 11, 2023, the average one-year price target for Unitedhealth Group is 608.10. The forecasts range from a low of 529.24 to a high of $682.50. The average price target represents an increase of 26.76% from its latest reported closing price of 479.72.

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.

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 63.65% 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 28,401K shares representing 3.05% ownership of the company. In it’s prior filing, the firm reported owning 27,904K shares, representing an increase of 1.75%. The firm decreased its portfolio allocation in UNH by 1.33% 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 Declares $1.65 Dividend

On February 27, 2023 the company declared a regular quarterly dividend of $1.65 per share ($6.60 annualized). Shareholders of record as of March 13, 2023 received the payment on March 21, 2023. Previously, the company paid $1.65 per share.

At the current share price of $479.72 / share, the stock’s dividend yield is 1.38%.

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=237).

The current dividend yield is 0.30 standard deviations below 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 0.53%, demonstrating that it has increased its dividend over time.

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.

Key filings for this company:

This article originally appeared on Fintel

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