Shares of UnitedHealth Group fell 5.1% on Friday, marking the second consecutive day of decline, as investors reacted to the murder of its CEO, Brian Thompson, and criticism over the company’s insurance practices. The stock is down 5.2% from Thursday.
The controversy surrounding UnitedHealthcare’s denial rate and use of AI in denying coverage has sparked widespread outrage on social media. One chart showed that the company denies claims at a rate of 32%, significantly higher than industry average, and double what other insurers do.
UnitedHealth has forecast steady earnings growth for 2025, but the backlash may lead to calls from ESG investors to divest from the stock or changes in regulations affecting profits. The incident has captured national attention, leaving it unclear whether anything will change in the health insurance industry.
The company’s CEO was killed on Wednesday morning, leading some politicians and experts to point fingers at Congress and money in politics as the real culprit. Meanwhile, investors are taking notice of the outrage directed at the company, with some analysts raising their price target despite this.
Source: https://finance.yahoo.com/news/why-unitedhealth-group-stock-fell-223222539.html