HomeBusinessWhy UnitedHealth Group shares fell again today

Why UnitedHealth Group shares fell again today

Shares of UnitedHealth Group (NYSE: UNH) fell for the second straight session today as investors appear to be factoring in the backlash against the company following the assassination of UnitedHealthcare CEO Brian Thompson on Wednesday morning.

UnitedHealth shares ended the day down 5.1%, after losing 5.2% on Thursday. Other health insurance stocks also fell even as the broader market gained on a strong jobs report.

Do you miss the morning spoon? Breakfast news delivers it all in one fast, silly and free daily newsletter. Register for free »

Image source: Getty Images.

Today’s selloff comes as some analysts have raised their price targets in response to the company’s previous 2025 guidance, which it released after hours on Tuesday ahead of an investor conference that was canceled after Thompson, who headed the the company’s insurance division, was murdered.

See also  Access to this page has been denied.

On social media and in the comment sections of news articles, there has been significant outrage over the company’s insurance practices, particularly its denial rate and use of AI to deny coverage. A widely shared chart shows that UnitedHealth denies 32% of claims, more than any other insurer and double the industry average.

Dean Phillips, the congressman representing UnitedHealth’s home district of Minnesota, acknowledged the insurance crisis in a post on

It is unclear what the ultimate consequences of the event will be, and whether anything will change for the health insurance industry. For now, however, the issue has captured the nation’s attention, and investors seemed surprised by the level of outrage directed at the company.

There could be ESG-related calls for institutional investors to divest from UnitedHealth and other health insurance stocks, or there could be regulatory changes that impact the profits of UnitedHealth and its peers.

See also  The Dow Jones rises 400 points to a new high as Wall Street cheers Trump's choice of Scott Bessent

In its filing, UnitedHealth forecast adjusted earnings of $29.50 to $30 in 2025, up from the $27.50-$27.75 it expects for 2024. This shows that the company continues to expect steady growth even as it faces rising costs due to an aging population.

Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.

On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments