Why UnitedHealth Group Stock Fell Again Today

Shares of UnitedHealth Group (NYSE: UNH) fell for the second session in a row today as investors seem to be reckoning with the backlash against the company following the murder of UnitedHealthcare CEO Brian Thompson on Wednesday morning.

UnitedHealth stock finished the day down 5.1% after losing 5.2% on Thursday. Other health insurance stocks also slipped, even as the broad market gained on a strong jobs report.

Image source: Getty Images.

Is the business model under threat?

Today's sell-off comes even as some analysts raised their price target in response to the company's earlier 2025 guidance, which it released after hours on Tuesday ahead of an investor conference that was canceled after Thompson, who headed the company's insurance division, was killed.

Across social media and in comments sections in news articles, there has been a substantial outcry against the company's insurance practices, in particular its denial rate and its use of AI to deny coverage. One widely shared chart showed UnitedHealth denies 32% of claims, more than any other insurer and double the industry average.

Dean Phillips, the congressman representing UnitedHealth's home district in Minnesota, acknowledged the insurance crisis in a post on X, and concluded, "The real culprit is Congress and money in politics, and it's time for change."

What's next for UnitedHealth?

It's unclear what the ultimate fallout will be from the event, or if anything will change for the health insurance industry. For the moment, however, the issue has captured the nation's attention, and investors seemed to be surprised by the level of outrage directed at the company.

There could be ESG-related calls for institutional investors to divest from UnitedHealth and other health insurance stocks, or there could be changes at the regulatory level that impact profits at UnitedHealth and its peers.

In its filing, UnitedHealth forecast adjusted earnings of $29.50 to $30 in 2025, up from the $27.50-$27.75 it's forecasting for 2024, showing the company continues to expect steady bottom-line growth even as it faces rising costs from an aging population.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.