UnitedHealth ( (UNH) ) has fallen by -22.93%. Read on to learn why.
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UnitedHealth has experienced a tumultuous week, with its stock price plummeting by 22.93%. This significant decline comes amid a series of unsettling developments, including the abrupt resignation of CEO Andrew Witty and the withdrawal of the company’s 2025 guidance. The situation was further exacerbated by a Wall Street Journal report revealing a Department of Justice investigation into potential Medicare fraud at UnitedHealth, which has added to investor unease and contributed to the sharp drop in share value.
The company’s decision to suspend its 2025 guidance due to worsening trends in Medicare Advantage has led to downgrades from analysts, who cite uncertainty and a lack of near-term catalysts. The leadership transition, with Stephen Hemsley returning as CEO, has also raised concerns about the company’s direction. Analysts like BofA’s Joanna Gajuk and Raymond James have downgraded the stock, highlighting the unexpected retraction of guidance and low visibility for the remainder of 2025. Despite these challenges, UnitedHealth remains optimistic about returning to growth in 2026.
Market analysts have mixed views on UnitedHealth’s future. While some, like RBC analyst Ben Hendrix, believe the stock is oversold and maintain a bullish outlook, others have reduced their price targets in response to the recent turmoil. The consensus among analysts is still a Strong Buy, with an average price target suggesting a potential upside. However, the ongoing investigation and management changes continue to cast a shadow over the company’s immediate prospects, leaving investors cautious about its near-term performance.