Why UnitedHealth Group Incorporated (UNH) Surged Today

We recently published a list of 10 Stocks That Stole the Show Today. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other stocks that stole the show today.

Ten mid-cap companies from diverse sectors stood out on Monday, outperforming the lackluster performance of major indices, thanks to a flurry of corporate developments that sparked investor appetite.

While the firms boasted between 5 and 14 percent gains, the Dow Jones rose by only 0.32 percent, while the S&P 500 and the tech-heavy Nasdaq each inched up by 0.09 percent and 0.02 percent, respectively.

In this article, we list the names of the top-performing stocks and detail the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

A senior healthcare professional giving advice to a patient in a clinic.

UnitedHealth Group Incorporated (NYSE:UNH)

Shares of UnitedHealth Group rallied by 8.21 percent on Monday to close at $315.89 apiece as investors resumed bargain-hunting after the company hit a new 52-week low late last week, weighed down by reports that it is being investigated over alleged fraudulent activities in its Medicare payouts.

On Thursday, the Wall Street Journal reported that the Department of Justice (DOJ) is investigating UnitedHealth Group Incorporated over its Medicare billing practices, sending its share prices falling to its lowest level of $248.88.

According to the report, the investigation has been ongoing since the middle of 2024 to look into whether the company fraudulently inflated patient diagnoses to rake in higher payouts from Medicare.

Meanwhile, UnitedHealth Group Incorporated called the report “deeply irresponsible, as even it admits that the ‘exact nature of the potential criminal allegations is unclear.’”

It said that it had not been formally notified of any criminal investigation but said that it “stands by the integrity of [its] Medicare Advantage program.”

Shareholder law firms have launched their own investigations into potential securities fraud alleged in the pending suit.

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This article is originally published at Insider Monkey.