UnitedHealth Group (NYSE: UNH) has seen a notable wave of insider buying, reflecting a concerted effort by its board to restore investor confidence following a turbulent period.
After plunging 23% over the past week, the stock rebounded 6% in the last trading session, closing at $291 as directors stepped in to buy shares amid the UNH sell-off.
UnitedHealth’s insider buys
According to regulatory filings, the company’s returning CEO, Stephen Hemsley, acquired 86,700 shares of UnitedHealth common stock on May 14, 2025, at an average price of approximately $288.18 per share, totaling around $25 million.
This substantial purchase boosted Hemsley’s direct ownership to 602,773 shares, valued at roughly $173.7 million based on the May 16 closing price.
Other directors have also participated in the recent buying spree. For example, Director Kristen Gil bought 3,700 shares on May 15 at $271.17 per share, amounting to approximately $1 million.
Similarly, on May 14, Director Timothy Patrick Flynn purchased 1,533 shares at $320.80 per share, totaling roughly $491,786, while Director John Noseworthy acquired 300 shares on the same day at $312.16 per share.
Though these individual transactions vary in scale, they collectively signal a coordinated vote of confidence in UnitedHealth’s long-term prospects despite recent setbacks.
The surge in insider buying follows a series of significant challenges for the healthcare giant. Most notably, CEO Andrew Witty’s abrupt resignation on May 13, citing personal reasons, has unsettled investors.
UNH stock troubles
In the wake of Witty’s departure, the company suspended its full-year 2025 financial outlook, attributing the decision to soaring medical costs, particularly within its Medicare Advantage plans, and a rise in care activity that outpaced projections.
Hemsley, who served as CEO from 2006 to 2017, has returned to stabilize the company. Known for overseeing substantial growth during his earlier tenure, he acknowledged his disappointment in UnitedHealth’s recent performance but reiterated his belief in the company’s long-term growth potential.
However, UnitedHealth’s challenges do not end there. On May 15, the Wall Street Journal reported that the U.S. Department of Justice is conducting a criminal investigation into the company’s Medicare Advantage billing practices.
This news, which UnitedHealth has described as “deeply irresponsible” without formal notification, triggered a nearly 13% drop in the stock.
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