UnitedHealth Group: 4 Different Insiders Have Sold Shares During The Last 30 Days

Mar.21.14 | About: UnitedHealth Group (UNH)

Summary

Four insiders sold UnitedHealth Group stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

Three of these four insiders decreased their holdings by more than 10%.

UnitedHealth Group Incorporated (NYSE:UNH) operates as a diversified health and well-being company in the United States.

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Insider selling during the last 30 days

Here is a table of UnitedHealth Group's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Kenneth Shine Director March 18 1,250 No 24,085 shares + 1,250 options 4.7%
William Ballard Director March 18 10,000 No 65,042 shares 13.3%
Gail Boudreaux EVP Feb 27-28 90,392 No 182,531 shares 33.1%
Larry Renfro EVP Feb 25 131,569 No 185,758 shares 41.5%
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There have been 233,211 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of UnitedHealth Group's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 11,250 0
February 2014 267,886 0
January 2014 10,000 0
December 2013 46,240 0
November 2013 0 0
October 2013 0 0
September 2013 30,000 0
August 2013 0 1,000
July 2013 120,000 0
June 2013 10,000 0
May 2013 49,791 0
April 2013 52,940 0
March 2013 44,374 0
February 2013 176,132 0
January 2013 0 2,000
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There have been 818,613 shares sold, and there have been 3,000 shares purchased by insiders since January 2013. The month of February 2014 has seen the most insider selling.

Financials

UnitedHealth Group reported the full-year 2013 financial results on January 16 with the following highlights:

Revenue $122.5 billion
Earnings from operations $9.6 billion
Net income $5.6 billion
Cash $9.2 billion
Debt $16.9 billion
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Outlook

UnitedHealth Group's 2014 guidance is as follows:

Revenue $128-$129 billion
EPS $5.40-$5.60
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Competition

UnitedHealth Group's competitors include Aetna (NYSE:AET), Humana (NYSE:HUM), and WellPoint (WLP). Here is a table comparing these companies.

Company UNH AET HUM WLP Industry Average (Health Care Plans)
Market Cap: 80.47B 27.39B 18.21B 28.14B 26.75B
Employees: 156,000 48,600 52,000 48,200 52.00K
Qtrly Rev Growth (yoy): 0.08 0.33 0.07 N/A 0.10
Revenue: 122.49B 47.29B 41.31B 71.02B 47.29B
Gross Margin: 0.27 0.25 0.21 0.21 0.27
EBITDA: 10.59B 4.15B 2.32B 5.15B 4.15B
Operating Margin: 0.08 0.08 0.05 0.06 0.06
Net Income: 5.62B 1.91B 1.23B 2.63B N/A
EPS: 5.50 5.33 7.73 8.19 5.50
P/E: 14.80 14.18 15.30 12.16 14.68
PEG (5 yr expected): 1.70 1.27 1.63 1.24 1.56
P/S: 0.65 0.57 0.44 0.39 0.63
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UnitedHealth Group has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
AET 0 26,055
HUM 0 126,587
WLP 0 10,000
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Only UnitedHealth Group has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling UnitedHealth Group, and there have not been any insiders buying UnitedHealth Group during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. UnitedHealth Group has an insider ownership of 0.70%.

Before going short UnitedHealth Group, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are relatively high P/S ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.