Alden Global Capital Acquires Stake in UnitedHealth Group

Alden Global Capital LLC has made a significant investment in UnitedHealth Group Incorporated, acquiring 23,655 shares valued at approximately $7.38 million. This purchase, disclosed in the company’s recent filing with the U.S. Securities and Exchange Commission (SEC), positions UnitedHealth Group as the ninth largest holding in Alden’s investment portfolio, accounting for roughly 4.5% of its total investments.

Other institutional investors have also adjusted their holdings in UnitedHealth Group. Notably, Norges Bank established a new position worth around $3.84 billion during the second quarter. Meanwhile, Dodge & Cox raised its stake by an impressive 117.7%, now owning 8,750,560 shares valued at about $2.73 billion. Wellington Management Group LLP increased its holdings by 10.6%, bringing its total to 25,847,940 shares valued at approximately $13.54 billion.

In addition, Amundi expanded its investment by 33.8%, now holding 6,191,871 shares worth around $1.90 billion. Natixis significantly increased its holdings by an astounding 396.6%, acquiring an additional 1,204,092 shares and totaling 1,507,698 shares valued at $470.36 million. Currently, approximately 87.86% of UnitedHealth Group’s stock is held by hedge funds and other institutional investors.

Analysts Project Continued Growth

Research firms have expressed optimism regarding UnitedHealth Group’s future performance. Barclays raised its price target from $352.00 to $386.00, assigning an “overweight” rating in a report released on October 9, 2023. Similarly, Mizuho increased its target from $300.00 to $430.00, while Sanford C. Bernstein boosted its target from $433.00 to $440.00 as of October 30, 2023.

According to MarketBeat, the consensus rating for UnitedHealth Group is “Hold” with an average price target of $385.54. Analysts have provided a variety of ratings, with seventeen recommending a Buy, nine suggesting a Hold, and three advising Sell.

Recent Performance and Financial Outlook

On October 28, 2023, UnitedHealth Group reported earnings that exceeded expectations, posting an earnings per share (EPS) of $2.92, surpassing the consensus estimate of $2.87 by $0.05. The company’s revenue for the quarter reached $113.16 billion, slightly below the anticipated $113.19 billion. This reflects a 12.2% increase compared to the same period last year, with a return on equity of 19.23% and a net margin of 4.04%.

Looking ahead, analysts project that UnitedHealth Group will achieve an EPS of $29.54 for the current fiscal year.

In addition to its strong financial performance, UnitedHealth Group has declared a quarterly dividend of $2.21 per share. This dividend will be paid on December 16, 2023, to shareholders recorded by December 8, 2023. The company’s dividend payout ratio stands at 46.14%, and the annualized dividend amounts to $8.84, yielding 2.6%.

UnitedHealth Group operates as a diversified health care company in the United States across four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The company provides a range of health benefits and services to various sectors, including national and public employers, small businesses, and individuals.

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