UnitedHealth: A Phoenix Rises From The Ashes

(11min)

Summary

  • UnitedHealth has faced chaos from poor earnings, leadership changes, and relentless negative headlines, taking shares down over 60% from highs.
  • Despite the turmoil, significant insider buying—including a $25 million purchase by Stephen Hemsley—signals strong internal confidence in the company’s future.
  • The stock now trades at a historically low valuation, with a nearly 3% dividend yield and potential for EPS recovery to $25-$27 in 2026.
  • Should you accumulate shares on weakness or fade it altogether?
  • This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing. Learn More »

Abstract phoenix flapping the darkness

koyu

In what feels like an eternity ago (a mere two weeks ago), we recently covered the chaos in UnitedHealth Group Incorporated (NYSE:UNH). At the time, shares were reeling on the back of the US Administration's moves to

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of UNH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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