Key insights
- Thirteen insiders, including the CFO, Optum CEO, and UNH CEO, made open market cash purchases of UNH stock within a two-week period following a 54% drawdown. Buffett also bought shares in Q2 2025. Despite ongoing DOJ investigation and Medicare reimbursement pressures, this cluster buy signal suggests strong internal confidence, potentially indicating a positive outlook for UNH and the healthcare sector.
UNH has had a terrible 18 months. The CEO gets murdered, his replacement resigns, DOJ criminal investigation into Medicare billing, EPS down 41% year over year. And ofc the stock took a huge loss
However, on March 17 the CFO, CEO of Optum, and CEO of UNH all bought stock in the open market with their own money. Then two weeks later on April 1, ten board directors bought on the same day.
Not options. Not awards. Cash purchases after a 54% drawdown.
I track insider buying vs earnings call sentiment across a bunch of large caps and this is the strongest cluster buy signal I've seen. The new CEO is publicly cautious but the people who actually know what's going on inside the company are putting their own money in.
Buffett also bought roughly 5 million shares in Q2 2025 during the collapse.
Obvious risks: DOJ investigation has no timeline, Medicare reimbursement is structurally pressured, medical cost ratios still elevated.
But with thirteen insiders buying within two weeks of each other after a 54% drop….that’s a very interesting sign.
Not financial advice. Curious what others think about UNH.