'Fast Money' traders discuss UnitedHealth amid DOJ probe reports

About this Video

• Video Title: 'Fast Money' traders discuss UnitedHealth amid DOJ probe reports
• Channel: CNBC Television
• Speakers: Tim, Mel, Guy (likely others, but names not explicitly stated in transcript)
• Duration: 00:05:59

Introduction

This CNBC "Fast Money" segment discusses the significant drop in UnitedHealth's stock price following a Wall Street Journal report about a Department of Justice investigation into potential Medicare fraud. The analysts debate the stock's future, considering various factors influencing the price decline and offering differing opinions on whether to buy, sell, or hold.

Key Takeaways

• DOJ Investigation: The Wall Street Journal reported a Department of Justice investigation into UnitedHealth for potential Medicare fraud. UnitedHealth denies this.
• Stock Price Decline: UnitedHealth's stock price fell nearly 11%, losing almost $100 billion in market capitalization since Monday. The stock is trading near April 2020 lows.
• Analyst Opinions: Analyst opinions are divided. Some maintain positive price targets, while others express concern about the company's future performance, citing lowered guidance and industry-wide challenges.
• Multiple Factors: The stock's decline is attributed to multiple factors beyond the DOJ investigation, including the CEO's murder, a disappointing first-quarter report, and withdrawn guidance.
• Valuation Considerations: The discussion includes valuation analysis, with some seeing a potential buying opportunity at the current discounted price, while others advise caution due to ongoing uncertainty.