UnitedHealth surges after insiders step up with massive buys of the S&P 500’s worst performer
It seems like everything has been going wrong for UnitedHealth.
Heading into Monday’s session, it’s the worst performer in the S&P 500 this year, down more than 40%.
The company cut its 2025 outlook in mid-April after saying that heightened demand for Medicare Advantage plans were poised to be a larger-than-anticipated drag on earnings. Then it withdrew guidance completely (citing Medicare Advantage yet again) and announced the departure of CEO Andrew Witty for personal reasons last week. The hits didn’t stop coming, with reports later that same day of a Department of Justice investigation into the company for potential Medicare fraud.
But shares are surging in early trading to open the week, topping the S&P 500’s leaderboard.
As can often be the case when it seems like the world is against you, UnitedHealth’s remaining management team seems to be adopting an “us against the world” mentality and putting their money where their mouths are:
Board members Timothy Flynn and Dr. John Noseworthy (note: now that’s an aptronym!) bought 1,533 and 300 shares last Wednesday, respectively, before the stock cratered to fresh post-Covid lows on Thursday following reports of the DOJ investigation.
Kristen Gil, who also serves on UnitedHealth’s board, stepped into the breach on May 15 with a purchase of 3,700 shares. Though these shares are indirectly held in a trust, this was not part of a scheduled 10b5-1 trading plan.
And to close out the week, new CEO Stephen Hemsley bought about $25 million in company stock, while President and CFO John Rex added a cool $5 million to his holdings.
