Latest news with #StephenJ.Hemsley
Yahoo
7 hours ago
- Business
- Yahoo
These Were the 2 Worst-Performing Stocks in the Dow Jones Industrial Average in May 2025
Two healthcare Dow stocks stunned investors with their sharp falls in May. The worst-performing Dow stock last month plunged over 26% as things took an unexpected turn. 10 stocks we like better than UnitedHealth Group › The Dow Jones Industrial Average (DJINDICES: ^DJI) index edged 3.9% higher in May, with 70% of its 30 constituent stocks ending the month in positive territory. However, the two worst-performing Dow stocks in May -- both from the healthcare sector -- kept the index's rally in check, with one of them plunging over 25%. Shares of UnitedHealth Group (NYSE: UNH) crashed 26.6% in May after multiple negative developments sent shockwaves through the investing community. In mid-May, UnitedHealth suddenly replaced its CEO, Andrew Witty, with former CEO Stephen J. Hemsley with immediate effect and suspended its earnings outlook for the full year because of a surge in medical costs. In between, The Wall Street Journal reported a criminal investigation against UnitedHealth by the Department of Justice for a "possible medicare fraud." Days later, The Guardian released a scathing report alleging UnitedHealth put patients' health at risk by paying secret bonuses to nursing homes to cut hospital transfers. For now, UnitedHealth expects to "return to growth" in 2026 and has sued The Guardian for defamation. Regaining investor confidence, however, may not be easy. The stock is down 38% so far this year, as of this writing. Merck (NYSE: MRK) stock lost 9.8% in May and plunged to its 52-week low of $73.31 a share after President Donald Trump signed an executive order directing drugmakers in the U.S. to cut the prices of prescription drugs. This comes at a time when Merck already expects tariffs to add $200 million to its costs this year. Investors are also worried about Merck's future once its blockbuster oncology drug Keytruda loses patent exclusivity. In mid-May, analysts at Citi slashed Merck stock's price target to $84 per share from $115 per share citing the pharmaceutical company's growth challenges and a "lack of urgency" to develop a business that could soften the impact of a potential loss of up to 20% of sales for Keytruda once its patent expires. Merck, however, has a strong pipeline, remains committed to dividend growth, and yields 3.9%. 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 $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% 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 Citigroup is an advertising partner of Motley Fool Money. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy. These Were the 2 Worst-Performing Stocks in the Dow Jones Industrial Average in May 2025 was originally published by The Motley Fool Sign in to access your portfolio
Perth Now
27-05-2025
- Business
- Perth Now
Wild reason man kidnapped brother-in-law
Representative John McGuire (R-Virginia) recently bought shares of UnitedHealth Group Incorporated (NYSE:UNH). In a filing disclosed on May 16th, the Representative disclosed that they had bought between $1,001 and $15,000 in UnitedHealth Group stock on April 10th. The trade occurred in the Representative's 'MERRILL LYNCH SEP IRA' account. UnitedHealth Group Stock Down 0.4% UnitedHealth Group stock opened at $295.37 on Tuesday. The company has a market cap of $267.94 billion, a P/E ratio of 19.06, a price-to-earnings-growth ratio of 1.37 and a beta of 0.56. UnitedHealth Group Incorporated has a 1-year low of $248.88 and a 1-year high of $630.73. The company has a fifty day simple moving average of $448.25 and a 200 day simple moving average of $501.48. The company has a current ratio of 0.83, a quick ratio of 0.91 and a debt-to-equity ratio of 0.74. UnitedHealth Group (NYSE:UNH – Get Free Report) last released its earnings results on Thursday, April 17th. The healthcare conglomerate reported $7.20 earnings per share for the quarter, missing analysts' consensus estimates of $7.29 by ($0.09). The business had revenue of $109.58 billion during the quarter, compared to the consensus estimate of $111.56 billion. UnitedHealth Group had a net margin of 3.60% and a return on equity of 26.69%. During the same period last year, the business posted $6.91 EPS. Research analysts anticipate that UnitedHealth Group Incorporated will post 29.54 earnings per share for the current fiscal year. Insiders Place Their Bets In other UnitedHealth Group news, CEO Stephen J. Hemsley bought 86,700 shares of UnitedHealth Group stock in a transaction on Friday, May 16th. The shares were purchased at an average cost of $288.57 per share, with a total value of $25,019,019.00. Following the acquisition, the chief executive officer now directly owns 679,493 shares of the company's stock, valued at $196,081,295.01. The trade was a 14.63% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Kristen Gil acquired 3,700 shares of UnitedHealth Group stock in a transaction dated Thursday, May 15th. The stock was purchased at an average cost of $271.17 per share, for a total transaction of $1,003,329.00. Following the completion of the purchase, the director now owns 3,818 shares in the company, valued at approximately $1,035,327.06. The trade was a 3,135.59% increase in their position. The disclosure for this purchase can be found here. Insiders have acquired 109,408 shares of company stock valued at $31,607,768 in the last ninety days. 0.33% of the stock is currently owned by insiders. Hedge Funds Weigh In On UnitedHealth Group Several hedge funds and other institutional investors have recently made changes to their positions in the company. NewSquare Capital LLC bought a new stake in shares of UnitedHealth Group during the fourth quarter worth $25,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of UnitedHealth Group during the fourth quarter worth $26,000. Hurley Capital LLC bought a new stake in shares of UnitedHealth Group during the fourth quarter worth $28,000. Bayforest Capital Ltd grew its stake in shares of UnitedHealth Group by 685.7% during the first quarter. Bayforest Capital Ltd now owns 55 shares of the healthcare conglomerate's stock worth $29,000 after buying an additional 48 shares during the last quarter. Finally, AlphaMark Advisors LLC bought a new stake in shares of UnitedHealth Group during the fourth quarter worth $30,000. 87.86% of the stock is currently owned by institutional investors and hedge funds. Wall Street Analysts Forecast Growth A number of brokerages have recently commented on UNH. Bank of America downgraded shares of UnitedHealth Group from a 'buy' rating to a 'neutral' rating and decreased their price objective for the company from $560.00 to $350.00 in a research report on Wednesday, May 14th. Barclays decreased their price objective on shares of UnitedHealth Group from $513.00 to $362.00 and set an 'overweight' rating for the company in a research report on Thursday, May 15th. Erste Group Bank cut shares of UnitedHealth Group from a 'strong-buy' rating to a 'hold' rating in a research note on Wednesday, April 30th. HSBC restated a 'reduce' rating and set a $270.00 target price (down previously from $490.00) on shares of UnitedHealth Group in a research note on Wednesday, May 21st. Finally, Raymond James cut shares of UnitedHealth Group from a 'strong-buy' rating to a 'market perform' rating in a research note on Wednesday, May 14th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, seventeen have given a buy rating and one has issued a strong buy rating to the company. Based on data from UnitedHealth Group presently has an average rating of 'Moderate Buy' and an average price target of $441.87. Check Out Our Latest Research Report on UNH About Representative McGuire John McGuire (Republican Party) is a member of the U.S. House, representing Virginia's 5th Congressional District. He assumed office on January 3, 2025. His current term ends on January 3, 2027. McGuire (Republican Party) is running for re-election to the U.S. House to represent Virginia's 5th Congressional District. He declared candidacy for the 2026 election. John McGuire was born in Richmond, Virginia. McGuire graduated from Henrico High School. He served as a U.S. Navy Seal from 1988 to 1998. His professional experience includes founding SEAL Team Physical Training Inc. About UnitedHealth Group UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. Featured Articles companies with FREE daily email newsletter.
Express Tribune
14-05-2025
- Business
- Express Tribune
Unitedhealth Group CEO Andrew Witty resigns: Company's stock drops by 17%
Listen to article UnitedHealth Group has announced a sudden change in leadership, with CEO Andrew Witty stepping down for unspecified 'personal reasons.' The decision, revealed Tuesday, comes during a year of turbulence for the health insurance giant, including a high-profile executive killing, regulatory scrutiny, and a sharp drop in market value. Former CEO Stephen J. Hemsley will return to lead the company, a role he previously held from 2006 to 2017. He will also remain board chairman. Witty, who had served as CEO since 2021, will stay on as a senior adviser. Today we announced our new chief executive officer, Stephen J. Hemsley. Read more about our leadership changes here: — UnitedHealth Group (@UnitedHealthGrp) May 13, 2025 UnitedHealth's stock dropped more than 17% on Tuesday, closing at $311.38 — a steep fall from its peak of $630.73 in November 2024. The company, a Dow Jones Industrial Average component, also suspended its 2025 financial outlook, citing unexpectedly high medical costs among new Medicare Advantage enrollees and plans to expand benefit offerings. The company noted it 'expects to return to growth in 2026.' Witty's exit comes months after the December 2024 fatal shooting of Brian Thompson, the CEO of UnitedHealthcare, a UnitedHealth subsidiary. Thompson was killed in a 'premeditated, preplanned targeted attack' in midtown Manhattan. Luigi Mangione, 27, was arrested after a five-day manhunt and faces federal and state charges, including terrorism and murder. He has pleaded not guilty to all charges. The leadership reshuffle also follows heightened scrutiny from the Justice Department, which is investigating UnitedHealth's business practices amid broader criticism of the health insurance industry. UnitedHealth has not indicated whether a permanent replacement for Witty will be named in the near future.
Yahoo
14-05-2025
- Business
- Yahoo
UnitedHealth Group (NYSE:UNH) Suspends 2025 Outlook As CEO Hemsley Rejoins Team
UnitedHealth Group recently experienced significant developments, including the appointment of Stephen J. Hemsley as CEO after Andrew Witty's resignation, and the suspension of its 2025 earnings outlook due to accelerating care activities and higher-than-expected medical costs. These significant internal shifts may have influenced the company's substantial 21% share price decline over the last week. In contrast, the overall market saw a 3.9% rise, highlighting the unique challenges faced by UNH amid market optimism driven by the expected 14% earnings growth in the broader market over the forthcoming years. We've identified 1 risk for UnitedHealth Group that you should be aware of. Find companies with promising cash flow potential yet trading below their fair value. The recent leadership changes at UnitedHealth Group, alongside the indefinite suspension of its 2025 earnings outlook due to escalating care activities, could further challenge its revenue and earnings growth. This uncertainty might influence investor sentiment, especially against the backdrop of the company's short-term 21% share price decline. Over the longer-term, however, the total shareholder return was 15.93% over the past five years, highlighting the company's resilience in delivering value to investors over time despite recent setbacks. The company's past year's performance has seen some underperformance compared to the broader US market, which had an 11.6% return, underscoring the pressure from unexpected changes in Medicare dynamics and higher medical costs. These factors could continue to affect UnitedHealth's ability to achieve projected earnings, with existing revenue forecasts suggesting a 9.4% annual growth over the next three years. The share price's recent drop brings it to approximately US$394.51, which is substantially below the consensus analyst price target of US$539.95, indicating potential upside should the company manage to align its growing operational challenges with the expectations built into these valuations. Upon reviewing our latest valuation report, UnitedHealth Group's share price might be too pessimistic. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:UNH. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
NBC News
13-05-2025
- Business
- NBC News
UnitedHealth Group appoints new CEO and suspends annual forecast
UnitedHealth Group announced a new chief executive officer on Tuesday, after a tumultuous year that saw the CEO of its UnitedHealthcare subsidiary fatally shot in Manhattan. The company has been the source of criticism over problems in the insurance industry and has seen its stock value plummet in the past year. Stephen J. Hemsley was appointed as the new CEO effective immediately after Andrew Witty decided to step down as CEO for unspecified "personal reasons." Hemsley served as the company CEO from 2006 to 2017, and will remain chairman of the company's Board of Directors. Meanwhile, Witty will serve as a senior adviser to Hemsley, the company said in a news release. The company said in a statement that it has suspended its annual outlook for 2025, as "the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected." "The company expects to return to growth in 2026," the statement added. In December 2024, the CEO of United Healthcare, Brian Thompson, was fatally shot in what police described as a 'premeditated, preplanned targeted attack' in midtown Manhattan as he was walking to an investors' conference. Luigi Mangione, now 27, was arrested after a five-day manhunt and hit with federal and state charges in New York and Pennsylvania in connection with the shooting. He has pleaded not guilty to the murder and terrorism charges in New York, and not guilty to federal stalking and murder charges.
