Ayrshire Capital Management LLC sold its position in UnitedHealth Group Incorporated(UNH -1.97%) during the quarter ended June 30, 2025, executing trades totaling $5.98 million.
What happened
According to a recent SEC filing, Ayrshire Capital Management LLC fully liquidated its holding in UnitedHealth Group. The firm sold all 11,424 shares for approximately $5.98 million. The divestment reduced its position in the health care company to zero shares, as of the June 30 reporting date.
What else to know
UNH stock closed at $299.51 on July 10, 2025. Down 39.1% over the year ended July 10, 2025 and underperformed the S&P 500 by 51.18 percentage points
Dividend yield: 2.84%; forward P/E: 13.60; EV/EBITDA: 10.03 as of July 10, 2025; five-year revenue CAGR: 10.57% for the period ended July 10, 2025
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $265.33 billion |
| Revenue (TTM) | $410.06 billion |
| Net income (TTM) | $22.93 billion |
| Dividend yield | 2.84% |
Company snapshot
UnitedHealth offers health benefit plans, pharmacy care services, healthcare management, and technology-enabled health solutions through UnitedHealthcare and Optum segments. It Serves national and public sector employers, individuals, government programs (Medicaid, children's health insurance), and other employers across the United States.
UnitedHealth Group is a leading diversified healthcare company with operations spanning insurance, pharmacy benefits, and healthcare services. Its strategic focus on combining insurance offerings with technology-enabled health management positions it as a key player in the U.S. healthcare market.
Foolish take
The insurance giant is facing a string of allegations of misconduct and outright fraud. The Department of Justice (DOJ) is investigating the company in both a criminal and civil probe to determine if the company has been manipulating patient records to inflate what it is able to bill the government.
More recently, an investigation by The Guardian alleges the company engaged in a practice of paying bonuses to nursing homes that lowered their hospitalization rates not through better care, but by avoiding sending seniors to the hospitals when they needed a doctor. The report detailed how UnitedHealth sent its own medical teams into nursing homes who often interfered in these decisions.
This all comes at a time when the company and the insurance industry at large is facing increased costs that are severely impacting margins and the company’s bottom line. With this and the recent and sudden resignation of the company’s CEO, I would avoid UnitedHealth stock.
Glossary
13F assets under management (AUM):The total value of U.S. equity securities managed by an institutional investment manager, as reported in SEC Form 13F.
Fully liquidated:When an investor sells all holdings of a particular security, reducing the position to zero shares.
Divestment:The process of selling off an asset or investment, often to exit a position entirely.
Portfolio position:An individual investment or holding within a broader investment portfolio.
Dividend yield:Annual dividends paid by a company divided by its share price, expressed as a percentage.
Forward P/E:Price-to-earnings ratio using forecasted future earnings, indicating how much investors pay per expected dollar of earnings.
EV/EBITDA:Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; a valuation metric comparing company value to operating earnings.
CAGR (Compound Annual Growth Rate):The annualized rate of growth for a value over a specified period, assuming profits are reinvested each year.
Pharmacy benefit management:Services that manage prescription drug programs for insurers, employers, and other plan sponsors to control costs and improve outcomes.
Technology-enabled health solutions:Healthcare services or products enhanced by digital tools, data analytics, or software to improve care delivery and efficiency.
Public sector employers:Organizations operated by government entities, such as federal, state, or local agencies.
Reporting date:The specific date as of which financial or portfolio information is provided in regulatory filings or reports.