Why Is UnitedHealth Stock Trading Lower On Thursday?

Core Viewpoint - UnitedHealth Group Inc. is facing potential criminal investigation for Medicare fraud, leading to a decline in stock price [1][9]. Group 1: Investigation and Legal Issues - The Justice Department's healthcare-fraud unit is overseeing an investigation into UnitedHealth, which has been active since at least last summer [1]. - UnitedHealth's annual securities filing indicates ongoing governmental investigations, audits, and reviews, including involvement from the Justice Department [2]. - The company has not been officially notified about the criminal investigation reported by the Wall Street Journal [3]. - A civil fraud investigation into UnitedHealth's Medicare billing practices was reportedly launched by the Justice Department [5]. - Medicare allegedly paid significant amounts to UnitedHealth based on diagnoses that some doctors deemed irrelevant or undocumented [6]. Group 2: Leadership Changes - UnitedHealth's CEO Andrew Witty announced his resignation and suspended fiscal year 2025 guidance, following the murder of the insurance unit CEO, Brian Thompson [4]. Group 3: Analyst Reactions and Stock Performance - UnitedHealth's stock fell by 7.83% to $283.88 during premarket trading [9]. - Various analysts have adjusted their ratings and price targets for UnitedHealth, with Keybanc lowering its target from $575 to $450 and BofA Securities downgrading from Buy to Neutral with a target reduction from $560 to $350 [10].