UnitedHealth shares surge 8% as CEO Stephen Hemsley and insiders buy stock

UnitedHealth's stock price rebounded significantly on Monday, rising 8% to close near $316, following a series of stock purchases by CEO Stephen Hemsley and other insiders. Hemsley, who recently resumed his role as CEO after Andrew Witty's resignation, purchased 86,700 shares at an average price of $288.57.

The surge in stock price comes after UnitedHealth shares had dropped to a five-year low last week, amid concerns regarding Witty's departure, the suspension of the company's outlook, and reports of a federal investigation into potential Medicare fraud. Despite Monday's gains, the stock has lost nearly half its value over the past five weeks.

In addition to Hemsley, CFO John Rex bought over 17,000 shares, and director Kristen Gil added 3,700 shares. Other directors, including John Noseworthy and Tim Flynn, also participated in the stock purchases last week, signaling confidence in the company's future.

The positive movement in UnitedHealth's stock contributed to a broader market rally, with the Dow Jones Industrial Average gaining 140 points, aided by health care firms like UnitedHealth leading the charge. The stock's rebound is a critical development for investors, as it reflects insider confidence amidst recent turmoil.

UnitedHealth shares surged 8% on Monday, closing near $316, following significant stock purchases by CEO Stephen Hemsley and other insiders. Hemsley bought 86,700 shares at $288.57, while CFO John Rex and director Kristen Gil also increased their stakes amid concerns over the company's recent leadership changes.