Why did UNH's stock price drop?

The stock price of UNH has experienced a significant drop from July 29 to July 31. The decline in UnitedHealth Group's stock price can be attributed to a combination of factors: 1. **Department of Justice Investigation**: The company is currently under investigation by the Department of Justice (DOJ) into its Medicare billing practices. This investigation has added to the uncertainty surrounding the company and may have contributed to the decline in stock price. 2. **Baird's Downgrade**: The stock faced a significant downgrade by Baird, which could have led to a loss of investor confidence and a subsequent drop in stock price. Baird downgraded UnitedHealth from Neutral to Underperform, adjusting the price target significantly down to $198 from $312. This indicates a lack of confidence in the company's future performance. 3. **Increased Medical Costs and Weak Q2 Results**: The company has faced challenges with rising costs in its Medicare Advantage business and has reported weak second-quarter results. These factors could have contributed to the decline in investor confidence and stock price. 4. **Leadership Changes**: The appointment of Wayne S. DeVeydt as Chief Financial Officer (CFO) may have also played a role in the stock price drop. Such leadership changes can sometimes be perceived as a sign of instability, leading to a negative impact on investor sentiment. In summary, the drop in UnitedHealth Group's stock price is likely a result of a combination of factors including the DOJ investigation, Baird's downgrade, increased medical costs, weak Q2 results, and leadership changes. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |UNH|UNH.N|UnitedHealth Group|20250725|0.8902|169| |UNH|UNH.N|UnitedHealth Group|20250728|0.3771|169| |UNH|UNH.N|UnitedHealth Group|20250729|-7.4614|169| |UNH|UNH.N|UnitedHealth Group|20250730|1.9037|169| |UNH|UNH.N|UnitedHealth Group|20250731|-6.1946|169| |UNH|UNH.N|UnitedHealth Group|20250801|-6.194557209442196|169|