Key Stats for UNH Stock
- Today’s Price Change: -18%
- Current Share Price: $311
- 52-Week High: $631
- UNH Stock Price Target: $548
What Happened?
UnitedHealth Group (UNH) shares tumbled more than 17% on Tuesday following the unexpected announcement that CEO Andrew Witty will step down immediately for “personal reasons.”
The UNH stock price collapse intensified as the company simultaneously suspended its 2025 financial forecast, citing persistently higher medical costs, particularly for new enrollees in its private Medicare plans.
Former CEO Stephen Hemsley, who led UnitedHealth from 2006 to 2017, will return to the helm as Witty transitions to a senior advisor role.
The leadership change comes during a tumultuous period for the healthcare giant, which has faced government investigations, a devastating cyberattack, higher-than-expected medical costs, and public backlash following the murder of Brian Thompson, CEO of the company’s UnitedHealthcare insurance unit.
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What the Market Is Telling Us
The sharp decline in UNH stock price suggests investors are deeply concerned about the abrupt leadership change and the suspended guidance.
This marks the second time in recent months that UnitedHealth has negatively surprised the market. It follows April’s first earnings miss since 2008, which erased nearly $190 billion in market capitalization.
The broader health insurance sector is also feeling the impact, with shares of CVS Health dropping more than 4%, Elevance Health and Humana falling over 6%, and Cigna declining more than 2%.
This sector-wide selloff indicates the market fears UnitedHealth’s cost challenges may be systemic throughout the industry as more seniors undergo procedures delayed during the COVID-19 pandemic.
However, some investors may view Hemsley’s return positively, given his track record of transforming UnitedHealth into a $400 billion healthcare conglomerate during his previous tenure as CEO.
UnitedHealth expects to resume growth in 2026, suggesting the current challenges, while significant, may be temporary.
See UNH’s revenue and earnings estimates for 2025 and beyond
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
