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.
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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.
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.
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.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Why UnitedHealth Group Stock Fell Again Today was originally published by The Motley Fool
