Several U.S. Congress members made well-timed stock sales of UnitedHealth (NYSE: UNH) before the company’s shares plunged by nearly 50% in some cases, raising questions about potential insider knowledge.
Representatives Bruce Westerman, Dan Newhouse, and Gilbert Ray Cisneros, Jr. executed these trades just weeks before a series of negative developments made the healthcare giant’s stock tumble.
Westerman sold between $1,001 and $15,000 of UNH stock on April 21. Since then, the equity has dropped 25.73%.
Newhouse sold a similar amount on April 11, with shares falling 47.31% after his trade. Cisneros sold on April 29, for his Congress trade, and UNH has declined 22.81% since.
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Suspicion around Congress’ UNH stock sales
The timing of the transaction raises questions, especially given some lawmakers’ positions on key House committees.
For instance, Newhouse serves on the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, which oversees the FDA, a regulator with potential influence over companies like UnitedHealth.
These trades were disclosed between May 6 and May 16, 2025, amid a wave of company setbacks.
UNH’s stock began its slide after CEO Andrew Witty unexpectedly resigned on May 13, citing personal reasons. The move rattled investors and cast doubt on the company’s leadership stability.
Days later, UnitedHealth suspended its 2025 financial outlook, blaming rising medical costs. Then, on May 15, the Wall Street Journal reported that the Department of Justice had launched a criminal investigation into the company’s billing practices, a claim the company has since denied, but the news triggered further selling.
While no direct evidence of misconduct has emerged, the close timing of the trades to these events draws scrutiny, particularly since the broader market has performed far better over the same period.
UNH stock price analysis
Meanwhile, UNH shares have since begun to recover, bolstered by insider purchases that have restored investor confidence. At the close of the last trading session, UNH was up 8% on the day, trading at $315.89.
Still, Wall Street remains cautious. As reported by Finbold, analysts remain largely bearish on the stock, citing concerns over leadership instability, suspended guidance, and regulatory uncertainty.
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