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UnitedHealth Group (UNH, Financials) announced the resignation of CEO Andrew Witty on Tuesday and suspended its annual forecast, sending the stock down more than 15% to a four-year low.
The company attributed the guidance withdrawal to a spike in healthcare demand from patients with complex conditions, a trend that has increased costs across its insurance business. The stock drop follows an earlier 20% slide on April 17 after a forecast cut.
Witty's resignation came just weeks after the company reported its first earnings miss since 2008. Former CEO Stephen Hemsley, 72, will return to lead the company. Analysts view his appointment as a stopgap measure amid ongoing challenges.
UnitedHealth has faced multiple headwinds over the past year, including a cyberattack affecting 190 million people, a Medicare billing investigation, and the December murder of insurance unit CEO Brian Thompson.
Peers including Humana (HUM, Financials), CVS Health (CVS, Financials), and Elevance Health (ELV, Financials) were also impacted by sector-wide jitters but have since rebounded.
UnitedHealth expects to return to growth in 2026 and plans to price Medicare Advantage plans more aggressively to reflect rising care utilization.
Some analysts speculated Witty may have been pushed out, citing investor dissatisfaction with recent performance and guidance cuts.
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This article first appeared on GuruFocus.