UnitedHealthcare Stock Shoots Up after 5-Year Low
UnitedHealthcare is experiencing a stock price jump but has lost a lot of stock value in recent days.
Quick overview
- UnitedHealthcare's stock price surged from $251 to $314 after hitting a five-year low, driven by insider acquisitions and leadership changes.
- The stock previously fell due to investigations by the Justice Department over allegations of defrauding Medicare patients, causing a drop from $378 to $278.
- Despite the recent rise, the stock has not recovered significantly and may face challenges due to ongoing legal issues and public perception.
- The next quarterly earnings report is crucial for UNH, as it could impact the stock's recovery trajectory.
UnitedHealthcare (UNH) saw their stock price climb rapidly Monday after just recently hitting a five-year low point. From a price of $251 to $314, the change has been remarkable.
Why is UNH stock on the rise right now? The sudden shift from a half decade low to a startling high has been attributed to massive stock acquisitions from company insiders as well as a change in leadership. By early morning trading on Tuesday, though, the stock movement stalled.
What Caused the Drop?
It is easy to see why the UNH stock fell so far so quickly. The company was recently hit with reports that they are under investigation by the Justice Department for potentially defrauding patients of their Medicare coverage. Wide-ranging fraud allegations have plummeted the company’s stock.
As criminal investigations began, the company’s stock fell from $378 to $278 per share. That marked an incredible low point for the company, and even the recent surge has not been enough to make up for even half of the lost ground. These investigations will likely continue and will certainly affect the potential for UNH’s stock price to grow.
What to Expect from UNH Stock?
The UNH has been a major factor on the stock market, pulling down the Dow Jones all on its own a few times throughout April. The change in management could help, but the new CEO Stephen Hemsley has a lot of work to do to help the company save face in light of these criminal allegations.
Our expectation is that UNH will make tidy profits off its business but will suffer terribly in the court of public opinion. Their profits may be mitigated by extensive court fees and fines as a result of the investigation. So, even though the stock price is up today, it is not back to where it was before the allegations surfaced, and the stock price likely will not be able to recover to that point until at least the next quarterly earnings report.
They last reported quarterly earnings on April 17th, so their next report is a few months out. During that last report, the company adjusted their expected earnings for the year, down from what they had previously set.
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