UnitedHealth Faces CEO Resignation, Criminal Probe, Stock Decline

UnitedHealth Group (UNH) is facing significant challenges including the resignation of CEO Andrew Witty, criminal and civil investigations related to Medicare fraud and nursing home kickbacks, and scrutiny over its practices in limiting hospital admissions for seniors. These issues have contributed to a steep decline in its stock price, with drops of around 30% over the past month and halving in value recently, while the company also suffered from a ransomware attack at its subsidiary Change Healthcare. Despite these setbacks and high claim denial rates that have drawn public criticism, UnitedHealth remains a major player in the U.S. healthcare market, covering over 29 million Americans and controlling 15% of the insurance market. Analysts maintain an overall optimistic outlook, with an average one-year price target around $395 and a consensus brokerage recommendation of 'Outperform,' suggesting potential stock upside of 30-35%. GuruFocus projects an even more substantial fair value estimate, implying over 130% upside from current prices, reflecting expectations of business recovery and growth. The combination of ongoing investigations, leadership changes, and public criticism has created uncertainty, but many investors and analysts see potential for long-term gains amid the turmoil.