UnitedHealthcare stock is down 8% since CEO was fatally shot

Core Points - UnitedHealth Group's stock has experienced a significant decline following the fatal shooting of CEO Brian Thompson, with a 7.80% drop over five days, equating to a loss of $47.81 per share [1] - The stock price fell more than 10% between Wednesday and Friday after the incident, although it showed some recovery after the arrest of a suspect [1] - Analysts are evaluating the potential long-term challenges for UnitedHealth Group's operating environment due to the incident and public backlash [1] Market Reactions - Jefferies analyst David Windley expressed confidence in UnitedHealth's resilience, noting a 2.4% recovery on Monday and an additional 0.12% on Tuesday [1] - Institutional investors are adjusting their positions, with The Teachers Retirement System of the State of Kentucky reducing its stake in UnitedHealth Group by 16% in the third quarter [2] Public Perception and Risks - Experts highlight the risks associated with negative public perception, suggesting that such incidents can lead to backlash, regulatory risks, and consumer disengagement [2] - The incident underscores the delicate balance between corporate reputation, stakeholder interests, and shareholder value, with the long-term impact remaining uncertain despite solid company fundamentals [2]