UnitedHealth Group Incorporated (UNH)

The past six months have seen significant volatility for UNH's stock. The stock price experienced a substantial decline. A cyberattack on Change Healthcare led to billions in recovery costs and a plummet in annual net income. UnitedHealth Group cut its 2025 earnings outlook, resulting in a record one-day stock drop, followed by the suspension of its 2025 earnings guidance and the exit of CEO Andrew Witty. The company reported errors in predicting the cost of medical care for its members, leading to a higher medical loss ratio. Multiple class action lawsuits were filed against UnitedHealth Group.

While healthcare generally experiences consistent demand, UnitedHealth Group's operations account for some seasonality. Actuarial models consider seasonal variances in medical care consumption. The company noted a 'click up in seasonal activity and heightened COVID activity in the fourth quarter of 2023.' Investment needs can also be seasonal, leading to short-term swings in free cash flow.

UnitedHealth Group, Inc. (UNH) is a diversified healthcare company operating globally, headquartered in Minnetonka, Minnesota. It operates in managed healthcare, health insurance, and healthcare providers & services. The company is divided into two main platforms: UnitedHealthcare and Optum. UnitedHealthcare provides health benefit plans and services for various employers, individuals, and government programs. Optum offers information and technology-enabled health services through Optum Health, Optum Insight, and Optum Rx.

UnitedHealth Group has a significant national presence across the United States. Globally, the company operates in South America, India, Ireland, the Philippines, and the United Kingdom. It previously had operations in Brazil but agreed to sell them.

UnitedHealth Group's brand reputation has been significantly impacted by controversies and legal challenges. The Change Healthcare cyberattack led to financial costs, lawsuits, and a criminal investigation. UnitedHealth was reported to be a leading offender for making dubious diagnoses in Medicare Advantage. Concerns were raised regarding practices that limit healthcare access, including prior authorization requirements and the use of AI algorithms to deny care. The company is facing a federal antitrust investigation and a DOJ lawsuit aimed at blocking its proposed acquisition of Amedisys.

UnitedHealth Group's ownership is predominantly institutional, with approximately 76.04% of the company's stock held by institutional investors. Public companies and individual investors collectively own about 46.88% of the stock, while insiders hold a smaller portion at 0.18%.