Diplomat Pharmacy (DPLO) to be acquired by UnitedHealth's (UNH) OptumRx for $4.00/share

 

 

Agreed to be acquired by OptumRx, UnitedHealth Group's (NYSE:UNH) pharmacy-care services division for $4.00/share through a cash tender offer, following a careful review of strategic options by co's Board of Directors. The stock had established new record lows below $3 in mid-November following co's issuance of Q3 results, at which time co's pursuit of a comprehensive strategic alternatives process remained ongoing; by Friday's close, the stock had improved by circa +139% from those lows.
Shares have run up over the last month or so as investors hoped that management could find a buyer at a higher price.

UnitedHealth (UNH) : partnerships with Quest Diagnostics (DGX) and LabCorp (LH)

   

 

UnitedHealth establishes long-term strategic partnerships with Quest Diagnostics (DGX) and LabCorp (LH)

• UnitedHealthcare and Quest Diagnostics have established a long-term strategic partnership as the two organizations focus on ways to create more personalized care recommendations and a simpler consumer experience for the more than 48 million people enrolled in UnitedHealthcare plans. Quest will be in network for all UnitedHealthcare plan participants beginning Jan. 1, 2019. Quest has 6,000 patient access points and will be in network nationwide for all plan participants beginning Jan. 1, 2019.
• UnitedHealthcare and LabCorp renewed their long-term strategic partnership. LabCorp will continue to serve as UnitedHealthcare's exclusive national laboratory provider until Jan. 1, 2019. LabCorp offers nearly 5,000 frequently requested and specialty tests.

===UnitedHealth (UNH) reported earnings on Tue 18 Oct 2016 (b/o)

UnitedHealth beats by $0.09, reports revs in-line; raises FY16 EPS above consensus :

• Reports Q3 (Sep) earnings of $2.17 per share, $0.09 better than the Capital IQ Consensus of $2.08; revenues rose 11.6% year/year to $46.29 bln vs the $46.06 bln Capital IQ Consensus.
• Co issues raised guidance for FY16, sees EPS of ~$8.00 from $7.80-7.95 vs. $7.92 Capital IQ Consensus Estimate.
• The consolidated medical care ratio decreased 60 basis points year-over-year to 80.3 percent in the third quarter. Year-to-date, the medical care ratio of 81.3 percent decreased 10 basis points over the prior year period.
• The third quarter 2016 operating cost ratio of 15.2 percent increased 30 basis points year-over-year due to increased levels of investment in the business to support future growth.

UnitedHealth (UNH) — is it a buy?

• positive move after earnings this a.m.
• closed $112.58

UnitedHealth (UNH) reported 4Q earnings on Tue 19 Jan 2016

** charts after earnings **

 UnitedHealth beats by $0.03, beats on revs; reaffirms FY16 EPS guidance, revs guidance  :

Reports Q4 (Dec) earnings of $1.40 per share, $0.03 better than the Capital IQ Consensus of $1.37; revenues rose 30.4% year/year to $43.6 bln vs the $43.1 bln Capital IQ Consensus.

• Co reaffirms guidance for FY16, sees EPS of $7.60-7.80 vs. $7.70 Capital IQ Consensus Estimate; sees FY16 revs of more than $180 bln vs. $181.52 bln Capital IQ Consensus Estimate.

Options trade : UNH (Dec 2013)

from http://theoptionspecialist.com/2013/12/18/puts-unitedhealth/

Short Puts (from http://www.optionmonster.com/education/short_puts.php)

Short puts are a bullish to neutral strategy.

Selling puts are often seen as a way to make money in a neutral market. Having chosen the strike and expiration date of an options contract, your sale is a credit and adds cash to your account. If the short put is "cash secured," which is often prudent, it means you to have enough cash in your account to purchase the stock at the designated strike. For instance, if you sold a 30 put for $1, you would have $3,000 cash in your account, in order to buy 100 shares of stock for $30 if assigned. (Note: Your broker may require short puts to be cash secured, or may have different margin requirements.)

• They can generate extra income in your account.
• The risk is the same as owning the stock, minus the credit for selling the put.
• They can be a good way to acquire stock.
• They are equivalent to covered calls, but may offer some advantages.
• The maximum gain is capped, while the risk is the same as owning the stock.