$32M in Insider Buys Signal Confidence Amid UnitedHealth’s Meltdown

UnitedHealth Group Inc. (UNH:US) is a cornerstone of American healthcare. As the largest U.S. health insurer and a critical component of the Dow Jones Industrial Average, UnitedHealth serves over 50 million Americans and wields enormous influence through its UnitedHealthcare and Optum businesses. But in May 2025, the company finds itself battling one of the worst crises in its history — one that’s rattled investors, triggered a leadership shake-up, and cut the company's market value in half.

A Perfect Storm: Leadership Exit, DOJ Probe, and Slashed Guidance

The unraveling began with a shocking leadership change. CEO Andrew Witty abruptly resigned “for personal reasons” — a move many analysts believe was not entirely voluntary. 

Just days later, UnitedHealth pulled its full-year 2025 guidance, citing sharply rising medical costs. The timing couldn’t have been worse. On the same day, The Wall Street Journal reported that the Department of Justice had launched a criminal investigation into potential Medicare fraud related to the company’s billing practices.

UnitedHealth responded swiftly, calling the reporting “deeply irresponsible” and stating it had received no formal notification of a DOJ investigation. Nonetheless, the damage was done. The company’s stock, already under pressure, nosedived further. By May 15, UnitedHealth shares were down 50% from recent highs — erasing $288 billion in market capitalization in just a month. The stock hit its lowest level since April 2020.

This crisis comes on the heels of a prior dark chapter — the 2024 murder of UnitedHealthcare CEO Brian Thompson, an event that shocked the healthcare industry and shook morale inside the company.As per the latest reports, UnitedHealth now faces scrutiny not only from the DOJ but also from the IRS, SEC, Department of Labor, and other federal agencies. While some investigations are routine, the broader context of crisis has made every headline sting harder.

But a Signal of Hope: Insiders Are Buying

Despite the turmoil — or perhaps because of it — UnitedHealth insiders are sending a very different message: they believe in the company’s recovery.

On May 16, Stephen Hemsley, the former CEO brought back to stabilize the company, bought 86,700 shares at an average price of $288.57, a bold $24.9 million bet on the company’s future. Hemsley isn’t just any executive — he led UnitedHealth through its golden years between 2006 and 2017 and is widely respected by analysts.

He wasn’t alone.

• John Rex, President and CFO, purchased 17,175 shares at $291.12, investing nearly $5 million.

• Kristen Gil, Director, bought 3,700 shares at $271.17, investing around $1 million.

• Timothy Flynn, Director, acquired 1,533 shares at $320.80, investing $491,786.

• John Noseworthy, Director, added 300 shares at $312.16, worth $93,646.

In total, insiders poured over $32 million into the company’s stock in just a few days — one of the most aggressive insider buying sprees the company has seen in recent history.

The Market Responds

The insider optimism didn’t go unnoticed. On May 19, shares of UnitedHealth rebounded 8.2%, closing at $315.89. While the stock remains far below its 52-week high of $630, this bounce suggests the market is beginning to take cues from those closest to the company’s internal dynamics.

Analysts like UBS’s AJ Rice praised Hemsley’s return, calling him a “steady hand to lead the company in this turbulent time.” Morgan Stanley echoed the sentiment, describing him as “the most appropriate person to step in.”

What Comes Next?

UnitedHealth’s troubles are far from over. Federal probes are still looming, and it will take time to rebuild investor trust. But the insider buying spree provides a rare signal of internal conviction. Executives aren’t just talking — they’re putting millions of their own dollars on the line.

For long-term investors, this could mark the beginning of a slow but meaningful recovery. For now, UnitedHealth remains a company in crisis — but with a leadership team that’s not backing down.