UnitedHealth stock hit with monster insider trade after massive free-fall

Core Viewpoint - UnitedHealth Group has experienced a significant wave of insider buying, indicating a concerted effort by its board to restore investor confidence after a turbulent period marked by stock price volatility and leadership changes [1][8]. Insider Buying Activity - CEO Stephen Hemsley purchased 86,700 shares at an average price of approximately $288.18, totaling around $25 million, increasing his ownership to 602,773 shares valued at roughly $173.7 million based on the May 16 closing price [3][6]. - Director Kristen Gil bought 3,700 shares at $271.17, amounting to approximately $1 million, while Director Timothy Patrick Flynn purchased 1,533 shares at $320.80 for about $491,786, and Director John Noseworthy acquired 300 shares at $312.16 [6][7]. Recent Challenges - The stock price of UnitedHealth dropped 23% over the past week but rebounded 6% in the last trading session, closing at $291 [1]. - The abrupt resignation of CEO Andrew Witty on May 13 has unsettled investors, leading to the suspension of the full-year 2025 financial outlook due to soaring medical costs and increased care activity [8][9]. - The U.S. Department of Justice is conducting a criminal investigation into the company's Medicare Advantage billing practices, which has contributed to a nearly 13% drop in stock price following the news [11]. Leadership Transition - Hemsley, who previously served as CEO from 2006 to 2017, has returned to stabilize the company and expressed disappointment in recent performance while maintaining belief in the company's long-term growth potential [10].