Top 5 Stock Picks of Touk Sinantha’s AltraVue Capital

In this article, we will discuss Top 5 Stock Picks of Touk Sinantha’s AltraVue Capital. For the full list and the investment strategy of AltraVue Capital, head on to Top 10 Stock Picks of Touk Sinantha’s AltraVue Capital.

5. UnitedHealth Group Incorporated (NYSE:UNH)

AltraVue Capital: $33,879,000   

Percentage of AltraVue Capital’s Portfolio: 4.98%

Number of Hedge Fund Holders: 91

One of the biggest private health insurers, UnitedHealth Group Incorporated (NYSE:UNH) serves 50 million members worldwide. In the last quarter, AltraVue Capital didn’t make any changes to its stake in UnitedHealth Group Incorporated (NYSE:UNH) during Q2 2022. The company’s stock constitutes 4.98% of the fund’s portfolio at the end of the second quarter 2022.

John Ransom, an analyst at Raymond James, increased his price target on UnitedHealth Group Incorporated (NYSE:UNH) to $635 from $620 previously. Recently, a judge ruled in favor of UnitedHealth Group Incorporated (NYSE:UNH), allowing it to proceed forward with its acquisition of Change Healthcare Inc. (NASDAQ:CHNG) which is the reason why the analyst raised his price target on the company’s stock.

Here is what RiverPark Wedgewood Fund has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2022 investor letter:

UnitedHealth Group also contributed to performance during the quarter. United’s operating income grew +3% on difficult year-ago comparisons as benefits members utilized more services compared to last year. Optum Health grew operating income +40% as more patients are enrolled in the Company’s value-based care services.

The Company estimates nearly a third of all medical care is unnecessary and represents an opportunity to capture savings for both patients. Optum’s integrated platform of patient data, IT, and service providers are focused on driving out these unnecessary costs and should serve as the engine for long-term, mid-teens earnings per share growth.