UnitedHealth Stock Caught In A Perfect Storm, Falls Nearly 50% Since April

UnitedHealth Group, Inc. UNH has fallen nearly 50% over the past month, fueled by a series of negative catalysts. 

Several analysts have slashed price targets on the stock, but one analyst has seen enough and downgraded UnitedHealth on Wednesday. 

What To Know: BofA Securities analyst Kevin Fischbeck downgraded UnitedHealth Group from Buy to Neutral and slashed the price target from $560 to $350 after the company pulled its 2025 outlook and announced a CEO transition on Tuesday. 

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UnitedHealth pulled its guidance after the company noticed its Medicare Advantage trend worsening and spreading to more complex patients, like dual enrollments. The analyst said the worsening trend became clear after UnitedHealth completed its March claims and had an early look at April's claims. 

Fischbeck views the health care giant’s decision to pull its fiscal guidance as a combination of uncertainty around the prevalence of higher utilization rates and to allow time for the incoming CEO to adjust. 

Andrew Witty unexpectedly resigned as CEO "due to personal reasons" on Tuesday and will be succeeded by Stephen J. Hemsley, who served as UnitedHealth's CEO from 2006 to 2017. 

What Else: UnitedHealth shareholders filed a lawsuit last week that alleges the company misled investors by concealing the negative business impacts that followed the December 2024 killing of UnitedHealthcare CEO Brian Thompson.

The company is still reeling from a major cyberattack on its Change Healthcare subsidiary and also faces intense regulatory and legal scrutiny, including federal investigations into its Medicare billing practices.

The recent convergence of disappointing earnings, surging medical costs, pulled forward guidance, abrupt leadership change and regulatory challenges have undermined investor confidence and triggered a dramatic revaluation of UnitedHealth stock over the past month. 

UNH Stock Price Action: UnitedHealth Group shares ended Wednesday's session down 1.08% at $308.01, according to Benzinga Pro. 

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