UnitedHealth Group Inc (NYSE:UNH) announced Tuesday morning that its CEO, Andrew Witty, will resign for personal reasons..
Stephen Hemsley, who previously held the CEO title from 2006 to 2017, will succeed him. Hemsley will also remain chairman of UnitedHealth's board of directors, and Witty will become senior adviser to the CEO.
The company also revealed that it would suspend its 2025 outlook, citing that care activity continued to accelerate.
UnitedHealth noted broadening to more types of benefit offerings than seen in the first quarter, and the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected.
It said it "expects to return to growth in 2026," according to the announcement.
The insurance giant reported adjusted EPS of $7.20 in April, up from $6.91 a year ago, missing the consensus of $7.29. Revenues increased 6.8% year over year to $109.6 billion, missing the consensus of $111.60 billion.
UNH shares gained 2.7% to trade at $319.78 on Wednesday.
These analysts made changes to their price targets on UNH following the announcement.
Considering buying UNH stock? Here’s what analysts think:
Read This Next:
Photo via Shutterstock
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.