Latest news with #UNH
Yahoo
2 hours ago
- Business
- Yahoo
UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip.
UnitedHealth Group (UNH) stock has plummeted nearly 4% in premarket trading after the insurance giant disclosed Department of Justice investigations into its Medicare program participation. The company says it's now complying with formal criminal and civil requests from the DOJ, confirming reports that have contributed to its substantial year-to-date decline of 44.3%. UNH's 50-day moving average is now on the cusp of crossing below its 20-day counterpart, with the shares on pace to revisit their May lows. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! The insurer's Medicare and retirement segment, which includes the Medicare Advantage business, represents its largest revenue stream, having generated $139 billion in sales last year. The negative reaction in the stock today reflects growing investor concerns about potential regulatory risks and compliance costs affecting one of the largest healthcare companies in the United States. What's Driving UNH Stock Down? This development adds to an already challenging period for UnitedHealth, which has been grappling with rising medical costs and a sudden CEO change. Now, the outcome of the DOJ investigation could have further significant material implications for UNH's future operations and financial performance. Despite the ongoing investigation, UnitedHealth cites independent audits by the Centers for Medicare & Medicaid Services that confirm their practices are among the industry's most accurate. Additionally, a court-appointed Special Master has concluded there was no evidence to support claims of wrongdoing in a previous decade-long civil challenge. The company has taken proactive measures by initiating third-party reviews of its policies, practices, and processes related to risk assessment coding, managed care practices, and pharmacy services. What Should UNH Investors Do? The situation presents significant uncertainty for investors, particularly given the critical nature of the Medicare business to UnitedHealth's overall revenue structure. While the company maintains full confidence in its practices and has committed to cooperating with the DOJ throughout the process, the stock's continued decline suggests that investors are pricing in further regulatory downside. However, Wall Street analysts remain surprisingly upbeat on UNH. The number of 'Strong Buy' ratings on the stock stands at 15 out of 24 total recommendations, down from 21 'Strong Buys' a few months ago, for a consensus 'Moderate Buy' from brokerage firms. While UNH stock looks cheap at current levels, trading at a discounted valuation of 13.9x forward earnings, value investors may want to look elsewhere for bargains, as the insurance giant continues to offer a relatively lopsided risk profile with the massive overhang of the DOJ probe. This article was created with the support of automated content tools from our partners at Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever. On the date of publication, Elizabeth H. Volk did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Wall Street Journal
2 hours ago
- Business
- Wall Street Journal
UnitedHealth Contacts U.S. Justice Amid Reports of Medicare Billing Probe
UnitedHealth UNH 2.59%increase; green up pointing triangle Group said it has proactively reached out to the Justice Department after reviewing reports about investigations into certain aspects of its participation in the Medicare program. The Wall Street Journal earlier this month reported that the Justice Department's criminal healthcare-fraud unit is investigating the healthcare conglomerate's Medicare billing practices, including how the company deployed doctors and nurses to gather diagnoses that bolstered its payments.
Reuters
2 hours ago
- Health
- Reuters
UnitedHealth says it has begun complying with formal criminal, civil requests from DOJ
July 24 (Reuters) - UnitedHealth (UNH.N), opens new tab has begun complying with formal criminal and civil requests from the Department of Justice after reviewing media reports about investigations into certain aspects of its participation in the Medicare program, a filing showed on Thursday.
Yahoo
2 days ago
- Business
- Yahoo
UNH Stock is Down 44% in 2025, But This Analyst Still Thinks UnitedHealth is a Top Q2 Earnings Pick
Unitedhealth Group Inc HQ photo-by jetcityimage via iStock Healthcare stocks are typically seen as defensive plays, especially during market uncertainty, but even industry giants aren't immune to volatility. UnitedHealth Group (UNH), once considered a reliable pillar in the managed care space, has suffered a stock decline of more than 44% in 2025. The selloff has been fueled by a mix of rising costs in its Medicare Advantage segment, a surprise CEO exit, and ongoing federal scrutiny into its billing practices. Despite these significant headwinds, Bernstein is bullish on UNH. The brokerage firm recently named UnitedHealth one of its 'Top Picks' ahead of Q2 earnings, pointing to its discounted valuation and the potential for a strong margin recovery in the coming years. Bernstein also sees normalization in Medicaid and Medicare Advantage trends, and is expecting UNH's earnings to double by 2029, at a compound annual growth rate (CAGR) of 19%. More News from Barchart For long-term investors with an eye for value amid chaos, here's why this beaten-down healthcare heavyweight could be at a 'very attractive entry point,' according to Bernstein. About UNH Stock Based in Minnetonka, Minnesota, UnitedHealth Group (UNH) is a diversified healthcare and insurance company operating through two main segments: UnitedHealthcare, which provides health benefits; and Optum, which offers healthcare services and technology. The company boasts a market capitalization of around $255.9 billion. UNH has endured a difficult year, with its stock plunging about 44% year‑to‑date - significantly underperforming the S&P 500 Index ($SPX), which has gained 7.3%. This underperformance has been driven by multiple headwinds, including surging Medicare costs, disappointing earnings, reported Department of Justice probes, a cyberattack, and the CEO's sudden resignation. Following the sharp sell-off, UNH's valuation is 'significantly depressed,' according to Bernstein. Its forward price‑to‑earnings ratio is 13.95x - well below the sector median, and roughly a 40% discount to its own 5-year average earnings premium. Bernstein analyst Lance Wilkes sees this as a prime opportunity to buy UNH stock at a discount. Separately, value investors will note that the stock yields 3.13% at current levels, offering solid income potential.
Yahoo
2 days ago
- Business
- Yahoo
UnitedHealth Group (UNH) Traded Down Following Softer Results and Reduced Guidance
Aristotle Atlantic Partners, LLC, an investment advisor, released its 'Focus Growth Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market regained its strength in the second quarter, following initial volatility, with the S&P 500 Index rising 10.94%. The Bloomberg U.S. Aggregate Bond Index also surged 1.21% during the quarter. Aristotle Atlantic's Focus Growth strategy returned 17.70% gross of fees (17.67% net of fees) in the quarter, underperforming the Russell 1000 Growth Index's 17.84% total return. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Aristotle Atlantic Focus Growth Strategy highlighted stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -6.17%, and its shares lost 49.49% of their value over the last 52 weeks. On July 21, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $282.14 per share, with a market capitalization of $255.94 billion. Aristotle Atlantic Focus Growth Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter: "UnitedHealth Group Incorporated (NYSE:UNH) detracted from relative performance in the second quarter following a surprisingly soft first quarter earnings report and a sizable guidance reduction. The issues were two-fold, including higher utilization inside its group Medicare Advantage offering, which drove a higher medical care ratio. The second issue was a negative new member mix, as several competitors exited the market, and many of the patients who switched to UnitedHealth's offerings had not been actively engaged in their care, resulting in higher acuity levels throughout the quarter. The company believes both issues are fixable in its next rate cycle." A senior healthcare professional giving advice to a patient in a clinic. UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the first quarter, which was 150 in the previous quarter. While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE:UNH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared the list of most undervalued healthcare stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
