Do They Know Something? Insiders & Congress Buy UnitedHealth
UnitedHealth Group (NYSE: UNH) has spent a significant amount of time in the sick bay for the first half of 2025, but it’s showing signs of recovery.
Let’s get the bad news out of the way first. The Eden Prairie, Minn.-based company has fallen 40% year-to-date and has plummeted 42.2% in the past three months alone, with most of that decline occurring in April and May. Over the past month, UNH shares have remained relatively flat, with a 0.1% gain.
Despite a turbulent start to the year, the healthcare services giant’s recent leadership changes and insider investments signal a potential path to recovery. And investors would be wise to pay attention: when executives are buying big, it often signals the bottom is in.
Meet the New Boss, Same as the Old Boss
So what’s ailing UNH?
Primarily, UnitedHealth's stock has suffered over multiple downbeat issues, including a headline-grabbing cybersecurity attack, soft earnings, federal regulatory headaches, and the resignation of CEO Andrew Witty, who helmed the firm since 2021 (and who served as CEO at GlaxoSmithKline from 2008 to 2017).
It’s the last issue that resonates right now, especially given the UNH share bounce back of late.
Witty was replaced by former UNH CEO Stephen J. Hemsley on May 13, who immediately offered an interesting outlook on the healthcare company’s financial fortunes.
“UnitedHealth Group has tremendous opportunities to grow as we continue to help improve health care and to perform to our potential, and, in so doing, return to our long-term growth objective of 13 to 16 percent,” Helmsley stated.
Insiders & Congress Quietly Load Up on UNH Shares
Almost simultaneously, company insiders and Congressional leading lights began snapping up shares of UNH stock.
Georgia Congressional Representative Marjorie Taylor Greene bought between $15,000 and $50,000 shares of UNH on May 14 and purchased between $1,001 and $15,000 on May 16. And she’s not alone. Texas Republican Congressman Michael McCaul purchased up to $50,000 in UNH shares on May 16, while Democratic Representatives Mo Khanna and Gilbert Cisneros also bought UnitedHealth shares, but did so in early 2025.
UNH executives are stacking company shares. On May 16, Hemsley bought $25 million worth of UNH stock, locking in 86,700 shares at an average price of $288.57 each. Additionally, company CFO John Rex and Director Kristen Gill were substantial UNH share buyers on May 16, 2025.
So what do Congressional portfolio builders and UnitedHealth’s C-suite know that the investing public doesn’t know?
The answer is ‘nothing out of the ordinary,’ especially from UNH executives. UnitedHealth’s leadership has stated that the company is on track for robust growth by 2026, while Hemsley is expected to reinstate UNH’s forward financial guidance, which was previously abandoned by the previous regime due to a series of adverse news reports and sluggish earnings.
Hemsley’s Plan to Rebuild Trust and Earnings
In an early June meeting with shareholders, Hemsley said his team was committed to winning back their trust and confidence. He also promised to review underperforming company areas, such as pharmacy services and risk management.
“With our second quarter report on July 29, we will establish a prudent 2025 earnings outlook and offer initial perspectives for 2026,” Hemsley told shareholders. “Across the enterprise, our pricing decisions and benefit designs for the next year are being fully shaped—with an abundance of respect—for the trend factors we noted in May and the environment we find ourselves in today and see going forward.”
Another immediate focus area will be on pricing disciplines. Hemsley acknowledged past missteps in forecasting care activity and costs, noting that these errors led to unsustainable growth. The company is now overhauling its forecasting methods to improve accuracy and financial oversight.
Moreover, Hemsley said UNH needs to move past problems with financial guidance, data security issues, and a U.S. Justice Department probe into alleged fraud, and focus on an operational and financial turnaround.
Analysts See 35% Upside: Can UNH Pull Off a Comeback?
Analysts believe Hemsley can do the job, giving UNH stock a consensus Moderate Buy rating.
Of the 25 analysts tracked by MarketBeat, 16 have issued a Buy rating for UNH, with only one giving it a Sell. The average price target is $415.57, signaling a potential upside of 35.61% from where it is currently trading.
UBS analyst AJ Rice is among the recent backers of UnitedHealth, even as he cut his one-year price target of UNH shares from $400 to $385 with a Buy call on the stock. He thinks the new management team's measured approach, especially on its upcoming guidance call, will pacify shareholders and promote stability to interested investors.
“We believe the company wants to offer a new 2025 outlook that it can be assured of delivering and, therefore, we expect the number to be even more conservative than normal when all is said and done,” Rice stated in a recent research note.
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