Potential UnitedHealth probe consequences could be catastrophic, says former assistant AG Kanter
Jonathan Kanter, former assistant Attorney General, and Sarat Sethi, DCLA managing partner, join 'Power Lunch' to discuss UnitedHealth's market value loss in recent weeks, what could happen to the health insurance company, and much more.
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2 hours ago
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UnitedHealth (UNH) Faces Sell Call Amid Margin Squeeze, Regulatory Risks
UnitedHealth (UNH, Financials) shares gained 1% Monday after newly reinstated CEO Steve Hemsley apologized for the company's first earnings miss since 2008 and vowed to restore shareholder trust at the annual meeting. Warning! GuruFocus has detected 4 Warning Sign with UNH. Hemsley replaced Andrew Witty last month amid fallout from the earnings shortfall and the suspension of full-year guidance due to soaring medical costs in the Medicare Advantage segment. The company also faces pressure from federal investigations and regulatory scrutiny over billing and drug pricing practices. We are well aware we have not fulfilled your expectations or our own, Hemsley told shareholders. We apologize for that performance, and we're humbly determined to earn back your trust and your confidence. Hemsley previously served as CEO from 2006 to 2013. Shareholders approved his new three-year pay package, which includes equity awards valued at $60 million. Proxy firms were split on the vote, with ISS opposing and Glass Lewis supporting the plan. UnitedHealth is reviewing operations across all units, including Optum Rx and UnitedHealthcare. The U.S. Department of Justice is reportedly examining billing practices tied to its integrated Medicare Advantage services, though the company says it has not received a criminal notification. The company's private insurance and 2026 Medicare Advantage plans will be adjusted to account for higher care costs, Hemsley said. The CEO transition follows the December killing of UnitedHealthcare CEO Brian Thompson in New York, which added further disruption to the company's leadership stability. Investors are now watching for updates on regulatory probes, Medicare audits, and Q2 cost trends that could shape UnitedHealth's revised guidance trajectory. This article first appeared on GuruFocus.
Yahoo
3 hours ago
- Yahoo
UnitedHealth (UNH) Faces Sell Call Amid Margin Squeeze, Regulatory Risks
UnitedHealth (UNH, Financials) shares gained 1% Monday after newly reinstated CEO Steve Hemsley apologized for the company's first earnings miss since 2008 and vowed to restore shareholder trust at the annual meeting. Warning! GuruFocus has detected 4 Warning Sign with UNH. Hemsley replaced Andrew Witty last month amid fallout from the earnings shortfall and the suspension of full-year guidance due to soaring medical costs in the Medicare Advantage segment. The company also faces pressure from federal investigations and regulatory scrutiny over billing and drug pricing practices. We are well aware we have not fulfilled your expectations or our own, Hemsley told shareholders. We apologize for that performance, and we're humbly determined to earn back your trust and your confidence. Hemsley previously served as CEO from 2006 to 2013. Shareholders approved his new three-year pay package, which includes equity awards valued at $60 million. Proxy firms were split on the vote, with ISS opposing and Glass Lewis supporting the plan. UnitedHealth is reviewing operations across all units, including Optum Rx and UnitedHealthcare. The U.S. Department of Justice is reportedly examining billing practices tied to its integrated Medicare Advantage services, though the company says it has not received a criminal notification. The company's private insurance and 2026 Medicare Advantage plans will be adjusted to account for higher care costs, Hemsley said. The CEO transition follows the December killing of UnitedHealthcare CEO Brian Thompson in New York, which added further disruption to the company's leadership stability. Investors are now watching for updates on regulatory probes, Medicare audits, and Q2 cost trends that could shape UnitedHealth's revised guidance trajectory. This article first appeared on GuruFocus.
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This cybersecurity play that's up more than 40% in 2025 has room to run, managing partner says
CrowdStrike and Microsoft shares have had a solid start to 2025, and further upside is still ahead for both names, according to Key Advisors Group co-founder and CEO Eddie Ghabour. Ghabour, who is also managing partner at the firm, joined CNBC's " Power Lunch " on Tuesday to give his thoughts on those stocks, as well as why he thinks Tesla could be poised for a breakout. CrowdStrike Shares gained about 2% on Tuesday and touched an all-time high ahead of the cybersecurity company's first-quarter earnings, which are due after the bell. "Cybersecurity is gonna be huge, and I think they're going to have a revenue beat," Ghabour said. "If you don't own it, I would be comfortable putting a position on now and then the other half of that position post-earnings, in case of a big move." Shares are up 42% in 2025. CRWD YTD mountain CrowdStrike stock in 2025. "Cybersecurity demand over the next decade...I can't think of another business that's going to have more natural demand than this because of the threat to companies," he added. "The outlook is really strong for this name." Microsoft Ghabour said that Microsoft will likely emerge as a top performer in the Magnificent Seven in 2025, after being a laggard in the cohort last year. In its fiscal third quarter , Microsoft beat on the top and bottom lines, but the software giant also saw its Azure revenue grow 33% — with 16 points of this growth associated with artificial intelligence. "They're still continuing to invest in AI, so we really like Microsoft to be a big winner in 2025," Ghabour said. MSFT YTD mountain Microsoft stock in 2025. Shares were near the flatline on Tuesday. The stock has climbed nearly 10% in 2025. Tesla Tesla CEO Elon Musk's exit from the Trump administration should allow the electric vehicle stock to potentially regain its December highs by the end of the summer, Ghabour said. "I think one of the best things for us shareholders is Elon leaving DOGE and focusing really back on his business, and I think they're being rewarded," he said, referring to the Department of Government Efficiency. TSLA YTD mountain Tesla stock in 2025. The electric vehicle company's sales have taken a hit amid Musk's involvement in the political sphere. Still, Ghabour thinks Tesla's efforts on robotics and artificial intelligence are a strong enough tailwind to overshadow EV weakness. "I think too many people are focused on car sales. This is not a car company. This is an AI play, so you have to look at it a little bit differently instead of focusing on that fundamental breakdown and look at the big picture," he said. Shares were marginally higher Tuesday, but are off nearly 15% in 2025.
