Why UnitedHealth Group (UNH) Stock Crashed Yesterday

We recently compiled a list of the Traders Flee These 10 Stocks Today. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other stocks that crashed yesterday.

Wall Street’s main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data.

Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent.

Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline.

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)

UnitedHealth fell for the eighth straight day on Thursday, tumbling 10.93 percent to close at $274.35 apiece as investor sentiment was dampened 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 (NYSE:UNH) over its Medicare billing practices.

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 (NYSE:UNH) 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.”

Overall, UNH ranks 3rd on our list of stocks that traders flee today. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.