Institutional Investors Hold Majority Stake in UnitedHealth Group

October 27, 2023

Categories: Healthcare PlansTags: , , Views: 180

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UNITEDHEALTH ($NYSE:UNH): UnitedHealth Group is a diversified healthcare company that provides a wide variety of health-related services to individuals, corporations, and government organizations. Institutional investors have recently taken a majority stake in UnitedHealth Group’s stock. According to Investing.com, institutional investors now hold more than three-quarters of shares outstanding for UnitedHealth Group. The remaining shares are held mostly by individuals, with the remaining shares accounted for by mutual funds and other institutions.

The majority stake held by institutional investors is significant, as it indicates that these investors have confidence in the future of UnitedHealth Group. Institutional investors are typically more risk-averse than individual investors, so their decision to hold such a large stake in the company is seen as a sign that the company is performing well and has a bright future ahead.

Market Price

On Monday, UnitedHealth Group (UNH) stock opened at $527.0 before dropping 1.0% to close at $521.6. It now provides services such as medical insurance, pharmacy benefits management, and consulting to its customers. Its products are available for employers, individuals, Medicare and Medicaid beneficiaries, and military service members. UnitedHealth Group’s stock has seen a surge in recent years on the back of strong financial results. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Unitedhealth Group. More…

    Total Revenues Net Income Net Margin
    345.23k 21.11k 5.4%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Unitedhealth Group. More…

    Operations Investing Financing
    41.38k -27.96k 3.71k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Unitedhealth Group. More…

    Total Assets Total Liabilities Book Value Per Share
    280.16k 188.01k 93.84
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Unitedhealth Group are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    11.9% 6.2% 8.8%
    FCF Margin ROE ROA
    11.1% 22.6% 6.8%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    At GoodWhale, we conducted an analysis of UNITEDHEALTH GROUP‘s fundamentals and according to our Star Chart, the company is strong in dividend, growth, and profitability. However, it is weak in asset. After evaluating its performance, we classified it as one of the ‘gorilla’ companies – a type of company that is characterized by its ability to achieve stable and high revenue and earning growth due to its competitive advantage. Given UNITEDHEALTH GROUP’s performance, it may be interesting to investors looking for a company with a strong competitive advantage. We believe UNITEDHEALTH GROUP has the potential to sustain its profitability and growth in the long run. Additionally, its high health score of 8 out of 10 indicates that it is capable to safely ride out any crisis without the risk of bankruptcy. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    One of the largest health insurance providers in the United States is UnitedHealth Group Inc. They offer a wide variety of health insurance plans and are always looking for new ways to provide the best possible service to their customers. Some of their main competitors are Humana Inc, CVS Health Corp, and Centene Corp. Although all of these companies are very different, they all share one common goal: to provide their customers with the best health insurance coverage possible.

    – Humana Inc ($NYSE:HUM)

    Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2019, Humana has had over 13 million customers in the United States. The company’s revenue was US$54.4 billion in 2018.

    – CVS Health Corp ($NYSE:CVS)

    CVS Health Corp is a leading provider of healthcare services in the United States. The company has a market capitalization of $120.33 billion as of 2022 and a return on equity of 10.96%. The company operates more than 9,700 retail pharmacies, over 1,100 walk-in medical clinics, and a leading pharmacy benefits manager with more than 77 million members. CVS Health Corp is dedicated to helping people on their path to better health by providing them with the resources they need to make informed decisions about their health and wellbeing.

    – Centene Corp ($NYSE:CNC)

    Centene Corporation is a large publicly traded managed care organization. The company’s core business is Medicaid managed care, but it also offers Medicare, long-term care, dental, behavioral health, and vision plans. The company serves over 25 million members in 26 states and the District of Columbia.

    Centene’s market cap of $43.28 billion and ROE of 6.97% indicate that it is a large and successful company. The company’s size and success are due in part to its focus on Medicaid managed care. Medicaid is a government health insurance program for low-income Americans. Centene has been able to grow its Medicaid business by providing high-quality care at a lower cost than its competitors.

    Summary

    UnitedHealth Group Incorporated is a diversified health care company with a majority stake held by institutional investors. The company has a strong presence in the health insurance market and provides products and services that span across the health care system. Its core areas of focus include health care services, health care information technology, and consumer-oriented health and well-being services. Its diversified product portfolio includes Medicare, Medicaid, commercial health insurance, and government and public programs.

    Analysts consider UnitedHealth Group a safe long-term investment as it is able to consistently increase profits and maintain a strong balance sheet. Furthermore, analysts expect UnitedHealth Group to benefit from ongoing trends in the health care industry such as increased digitization of services and the consolidation of providers.

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