Down 40% in 2025, How Should You Play UnitedHealth Stock Here?
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UnitedHealth (UNH) shares lost as much as 7% this morning following allegations the insurance giant secretly paid thousands to nursing homes in a bid to reduce hospitalizations.
This saved UNH millions at the expense of residents’ health, added The Guardian in a report today.
UnitedHealth stock has been in a freefall amidst a wave of bad news in recent weeks. Including today’s decline, the healthcare conglomerate is down some 50% versus its year-to-date high.
Insiders Are Loading Up on UnitedHealth Stock
Despite the many headwinds facing UnitedHealth this year, there’s reason to consider loading up on its stock following the recent crash.
For starters, insiders seem to believe the UNH stock is grossly undervalued at current levels.
Last week, three of them bought more than $1.5 million worth of UnitedHealth shares, indicating continued confidence in the company’s future prospects.
Note that the healthcare stock currently pays a healthy dividend yield of 2.75%, which makes it even more exciting to own in 2025.
Stephanie Link Remains Uber Bullish on UNH Shares
Hightower’s chief investment strategist Stephanie Link also sees a massive opportunity in UNH shares following their recent turmoil.
From a valuation perspective, UnitedHealth is as cheap as they come, she argued in a recent CNBC interview.
Link is bullish on UNH as it remains “the number one managed care company in the world” with a fortress of a balance sheet.
UnitedHealth already has authorization to repurchase up to $5 billion worth of its stock – but she expects the company’s management to announce an extended buyback program this month that may also help its stock price rally in the back half of 2025.
Additionally, Link has immense confidence in the leadership of Stephen Hemsley who was again named the chief executive of UnitedHealth Group just last week.
Wall Street Hasn’t Thrown in the Towel on UnitedHealth
Wall Street seems to agree with Link’s optimism on UnitedHealth stock.
The consensus rating on UNH shares remain a “Strong Buy” with the mean target of about $402 indicating potential upside of nearly 35% from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.