The Motley Foolยท2025-07-14 15:31Core Viewpoint - Ferguson Wellman Capital Management sold a significant portion of its shares in UnitedHealth Group, indicating potential concerns about the company's performance and outlook [1][2]. Company Overview - UnitedHealth Group is one of the largest healthcare companies in the U.S., operating across insurance, care delivery, and pharmacy benefit management, which supports a broad customer base and recurring revenue streams [4]. - The company reported a trailing twelve months (TTM) revenue of $410.06 billion and a net income of $22.11 billion, with a dividend yield of 2.95% [2][6]. Recent Performance - UnitedHealth's stock has underperformed significantly, with a one-year price change of -41.5%, and it is trading 52.5% below its 52-week high as of July 9, 2025 [5][10]. - The stock closed at $304.10 on July 11, 2025, and has underperformed the S&P 500 by 52.8 percentage points over the past year [5]. Challenges Faced - The company has faced multiple challenges, including a significant rise in medical costs, leading to a withdrawal of its earnings guidance [5][10]. - Allegations of Medicare billing fraud and secret bonuses to nursing homes have surfaced, contributing to a turbulent year for the company [8][9]. - The abrupt resignation of CEO Andrew Witty in mid-May has added to the company's instability [8]. Future Outlook - Despite current challenges, UnitedHealth has appointed former CEO Stephen J. Hemsley back to the role and expects to return to growth in 2026, with long-term earnings per share growth projected at 13% to 16% [10].