UnitedHealth insiders buy shares amid investigation turmoil
- UnitedHealth Group shares fell nearly 11% following news of a federal investigation into possible Medicare fraud.
- Insider buying activity included Kristen Gil purchasing 3,700 shares worth around $1 million while other directors also bought shares.
- The company faces significant challenges this year, with stock prices down approximately 43% amid various setbacks.
In the United States, UnitedHealth Group experienced significant insider trading as company executives purchased shares amid a dramatic decline in stock prices. On May 16, 2025, shares dropped nearly 11% to $274.35, following a report from The Wall Street Journal detailing an ongoing criminal investigation by the Department of Justice concerning possible Medicare fraud. This negative news surrounding the company triggered a fallout that investors were keenly observing. Additionally, this tumultuous period for UnitedHealth Group coincided with the unexpected resignation of CEO Andrew Witty. Witty's departure raised concerns among investors and stakeholders about the company’s stability and future direction, leading to speculations and increased scrutiny about the firm’s operational health. Replacing Witty is former CEO Stephen Hemsley, an individual with prior extensive experience within the company, but uncertainty looms regarding whether his return can restore confidence. Despite the turmoil, there appears to be some level of faith amongst insiders, as several directors chose to take advantage of the declining share price by purchasing additional stock. Kristen Gil acquired 3,700 shares valued at about $1 million, while fellow directors Timothy Patrick Flynn and John Noseworthy bought 1,500 and 300 shares respectively. This buying trend amongst insiders often signals a belief that stock prices have reached a low point, presenting a potential buying opportunity. On the day following the report of the investigation, UnitedHealth’s stock rebounded by about 6%, slightly alleviating the losses sustained earlier in the week. However, the company's stock value has decreased approximately 43% since the beginning of the year due to a staggering series of challenges, including a historic cyberattack and heightened medical costs, as well as public outcry following the death of UnitedHealthcare CEO Brian Thompson.