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Yahoo
2 days ago
- Business
- Yahoo
Why UnitedHealth Stock Imploded Last Month
UnitedHealth Group continued its historic drop in May, losing 26.6% during the month. The health insurer is facing new allegations of fraud and misconduct. The company's CEO suddenly stepped down, citing only "personal reasons." 10 stocks we like better than UnitedHealth Group › Shares of UnitedHealth Group (NYSE: UNH) fell in May, finishing the month down 26.6%. The collapse came as the S&P 500 (SNPINDEX: ^GSPC) gained 5.5% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 7.9%. The troubled health insurance giant faced a series of damning reports and allegations of fraud and misconduct following the sudden departure of its CEO. In May, UnitedHealth's then-CEO, Andrew Witty, announced he was stepping down, citing "personal reasons." The sudden loss of its CEO sent shockwaves through the company and signaled to investors the depth and scale of UnitedHealth's ongoing issues. The resignation came at the same time that the company told investors it was suspending guidance for 2025 due to surging medical costs. UnitedHealth was already facing an investigation from the Department of Justice in a civil case, but in May, it was revealed that the DOJ's Health Care Fraud Unit is conducting a criminal investigation into the company for Medicare fraud. Although it was revealed last month, the company has apparently been under criminal investigation for a year. Just a week after the DOJ revelation, The Guardian reported that UnitedHealth has been making secret bonus payments to nursing homes in order to keep ailing residents out of hospitals and save money. The report also claims the company staffed nursing homes with its own medical teams who, at times, interfered in order to keep residents who needed hospital care from receiving it. One former UnitedHealth executive told The Guardian, "You gain profitability by denying care, and when profitability suffers for the shareholders, that's when people get crazy and do things that are not appropriate." Just a year after the company's CEO was murdered in New York City, the company is still on its heels, with problems mounting. As James Harlow, senior vice president at Novare Capital Management, put it, "It just doesn't seem like they have a plan." All of this has shaken investor confidence, leading in April and May to the most severe drop for an S&P 100 company since Netflix fell 54% in May 2022, according to Dow Jones Market Data. There are just too many issues facing UnitedHealth at the moment, with no clear picture of an imminent turnaround. This once-seemingly stable investment looks far from it at the moment, and I would stay away from the stock. Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and UnitedHealth Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy. Why UnitedHealth Stock Imploded Last Month was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Economic Times
15-05-2025
- Business
- Economic Times
UnitedHealth tumbles as criminal probe report adds to investor fears
UnitedHealth Group shares plunged 18% on Thursday as investors fled the stock after a Wall Street Journal report that the U.S. Department of Justice was carrying out a criminal investigation into the company for potential Medicare fraud. ADVERTISEMENT The reported probe adds to a string of recent setbacks for the healthcare conglomerate that has erased more than half, or over $300 billion, from its market value since November, when shares were trading at record highs. On Thursday, UnitedHealth's shares hit a five-year low of $248.92 and dragged down the Dow Jones Industrial Average index . The company is the worst-performing Dow component so far this year. "The stock is already in the doghouse with investors, and additional uncertainty will only pile on," said James Harlow, senior vice president at Novare Capital Management, which owns shares in UnitedHealth. The news of the probe follows CEO Andrew Witty's abrupt departure and the withdrawal of its 2025 forecast, which triggered an 18% drop in shares to a four-year low on Tuesday. "UnitedHealth Group is mired in a crisis seemingly without end. Investors are bracing for another big bout of turbulence given reports of the DOJ investigation," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. ADVERTISEMENT UnitedHealth said it had not been notified of the investigation by the DoJ. The WSJ in February also reported a civil fraud investigation into UnitedHealth's Medicare practices, which the company had at that time said it was not aware of. The health insurance industry, as well as drug middlemen known as pharmacy benefit managers, has increasingly come under government and public scrutiny. ADVERTISEMENT For decades, the company has flourished by leveraging its dominance in insurance and growth in the Medicare market, the U.S. government program that covers medical costs for the elderly. The focus now turns to its next steps. The company has tapped former CEO Stephen Hemsley to replace Witty, becoming the latest company to turn to an ADVERTISEMENT experienced executive to take the helm, in the hopes of quelling investor concerns amid economic uncertainty. Despite recent adversities, Oppenheimer analyst Michael Wiederhorn maintained that the company's fundamentals are solid, though he acknowledged that "it may take time to win back the marketplace's confidence." (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
15-05-2025
- Business
- Time of India
UnitedHealth tumbles as criminal probe report adds to investor fears
UnitedHealth Group shares plunged 18% on Thursday as investors fled the stock after a Wall Street Journal report that the U.S. Department of Justice was carrying out a criminal investigation into the company for potential Medicare fraud . The reported probe adds to a string of recent setbacks for the healthcare conglomerate that has erased more than half, or over $300 billion, from its market value since November, when shares were trading at record highs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pare a neuropatia: descubra como NeuroFit On Thursday, UnitedHealth's shares hit a five-year low of $248.92 and dragged down the Dow Jones Industrial Average index . The company is the worst-performing Dow component so far this year. "The stock is already in the doghouse with investors, and additional uncertainty will only pile on," said James Harlow, senior vice president at Novare Capital Management, which owns shares in UnitedHealth. The news of the probe follows CEO Andrew Witty's abrupt departure and the withdrawal of its 2025 forecast, which triggered an 18% drop in shares to a four-year low on Tuesday. Live Events "UnitedHealth Group is mired in a crisis seemingly without end. Investors are bracing for another big bout of turbulence given reports of the DOJ investigation," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. UnitedHealth said it had not been notified of the investigation by the DoJ. The WSJ in February also reported a civil fraud investigation into UnitedHealth's Medicare practices, which the company had at that time said it was not aware of. The health insurance industry, as well as drug middlemen known as pharmacy benefit managers, has increasingly come under government and public scrutiny. For decades, the company has flourished by leveraging its dominance in insurance and growth in the Medicare market, the U.S. government program that covers medical costs for the elderly. The focus now turns to its next steps. The company has tapped former CEO Stephen Hemsley to replace Witty, becoming the latest company to turn to an experienced executive to take the helm, in the hopes of quelling investor concerns amid economic uncertainty. Despite recent adversities, Oppenheimer analyst Michael Wiederhorn maintained that the company's fundamentals are solid, though he acknowledged that "it may take time to win back the marketplace's confidence."
Mint
15-05-2025
- Business
- Mint
UnitedHealth Group shares nosedive over 19% to touch 5-year low: Here is why the stock is falling today
Shares of UnitedHealth Group plunged to a five-year low on Thursday on the New York Stock Exchange after reports of a probe against the company. The shares of UnitedHealth Group plunged over 19 per cent to hit the low of $248.88 per share. Here is why UnitedHealth Group stock is falling today. The Wall Street Journal in a recent report citing unnamed individuals stated that the US Department of Justice was investigating UnitedHealth Group for potential Medicare fraud. The report added that the Department of Justice has had a probe into the company's Medicare Advantage business since at least last summer. Hours later, UnitedHealth released a statement, denying the allegations made in the report. 'We have not been notified by the Department of Justice of the supposed criminal investigation reported, without official attribution, in the Wall Street Journal today,' it said. Condemning the report, the company said it stands by the integrity of its Medicare programme. 'The WSJ's reporting is deeply irresponsible, as even it admits that the 'exact nature of the potential criminal allegations is unclear.' We stand by the integrity of our Medicare Advantage program.' However, the statement did little to sway investor sentiments that have been running low for the past few sessions. The latest news adds to the health insurer's litany of woes, including multiple government inquiries, a sudden change in top leadership and a pulled outlook in the face of soaring medical costs. Investors and analysts noted that while details on the investigation were limited, they did heighten investor concerns. "The stock is already in the doghouse with investors, and additional uncertainty will only pile on," Reuters quoted James Harlow, senior vice president at Novare Capital Management, which owns shares in UnitedHealth, as saying. UnitedHealth shares dropped every day for the last eight trading sessions, including sinking more than 17 per cent Tuesday when the company abruptly replaced its chief executive officer and suspended 2025 guidance. It has lost more than $110 billion in market value this week. The past month's selloff has wiped out nearly $300 billion from UnitedHealth's market capitalisation, or more than half of its value since its shares hit a record high in November. Shares of UnitedHealth Group hit a five-year low of $248.88 apiece on the NYSE, plunging 19.19 per cent as against the previous close. The stock was down 14.52 per cent at $263.29 per share at 9:04 IST. Over the past five sessions, UnitedHealth Group shares have fallen by as much as 31.74 per cent, as per data by MarketWatch.
CNBC
15-05-2025
- Business
- CNBC
UnitedHealth shares slide as criminal probe report adds to investor fears
UnitedHealth Group shares fell nearly 7% in premarket trading on Thursday, after the Wall Street Journal reported that the U.S. Department of Justice was investigating the company for potential Medicare fraud. The latest news adds to the health insurer's litany of woes, including multiple government inquiries, a sudden change in top leadership and a pulled outlook in the face of soaring medical costs. Investors and analysts noted that while details on the investigation were limited, they did heighten investor concerns. "The stock is already in the doghouse with investors, and additional uncertainty will only pile on," said James Harlow, senior vice president at Novare Capital Management, which owns shares in UnitedHealth. The company, however, said that it had not been notified by the DOJ regarding this criminal investigation. The news of the probe follows CEO Andrew Witty's abrupt departure and the withdrawal of its 2025 forecast, which triggered an 18% drop in shares to a four-year low on Tuesday. "UnitedHealth Group is mired in a crisis seemingly without end. Investors are bracing for another big bout of turbulence given reports of the DOJ investigation," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. If premarket losses hold, UnitedHealth's market capitalization will touch $280 billion, or almost half of the $530 billion recorded on April 16, a day before a surprise earnings miss sparked a selloff in its shares. The health insurance industry has come under government scrutiny after a lawsuit this month accused three major U.S. insurers of paying kickbacks to brokers to steer patients into their plans. In February, the WSJ revealed a civil fraud investigation into UnitedHealth's Medicare practices, while U.S. Senator Chuck Grassley launched an inquiry into the company's billing methods, demanding detailed compliance records. For decades, the company has flourished by leveraging its dominance in insurance and growth in the Medicare market, the U.S. government program that covers medical costs for the elderly. This streak of strong performance came under pressure just months after a senior executive was tragically killed, allegedly by a man enraged over insurer practices.
