UnitedHealth Insiders Buy Shares Amid Investigation Concerns

This announcement caused UnitedHealth Group’s stock to tank on Thursday, dropping almost 11% to $274.35. The decrease comes on the heels of an explosive report from The Wall Street Journal. Most importantly, it shows that the Department of Justice is serious about uncovering and prosecuting potential Medicare fraud related to the company. Though these are all concerning moves, UnitedHealth insiders are using the chance to buy shares on the dip.

The investigation into UnitedHealth Group’s practices by the Department of Justice is a significant step in addressing the egregious ways in which UnitedHealth Group has undermined Medicare. Regulators are stepping up their enforcement amid the claims of potential fraud and abuse. This has alarmed many of the public investors and market observers. Once the story of the investigation came to light, investors panicked. They quickly sold their stake in the company, which caused the company’s shares to plummet in value.

In a market full of bearish sentiment, a number of insiders are making moves at UnitedHealth Group. Maybe most importantly, their moves should show you an incredible level of confidence in a company’s long-term prospects. On Thursday, Kristen Gil, a director at UnitedHealth, bought 3,700 shares worth about $1 million. This acquisition comes as a strategic investment by an insider during an uncertain period for the company.

In a time of great uncertainty, Gil’s purchase of shares demonstrates his confidence in the overall real estate market. He thinks the current stock price presents a “once-in-a-decade” buying opportunity. Insiders have exclusive access to info that the public does not. This unparalleled glimpse has the potential to greatly impact their investment choices.

The larger implications of the Department of Justice’s investigation are yet unknown. Market analysts are closely monitoring how this news affects investor sentiment and the potential consequences for UnitedHealth Group if any wrongdoing is uncovered. The company has still not publicly responded to the allegations, nor provided any additional information about what specific matters are under investigation.