UnitedHealth Group Inc (NYSE: UNH) is in focus this morning following reports that one of its executives have been shot in Manhattan.
An NYPD spokesperson has confirmed that a male aged 50 years was fatally shot at 06:46 a.m. ET in Manhattan.
While the representative did not confirm the identity of the victim – media reports suggest he’s Brian Thompson – the chief executive of UNH’s insurance business.
Shares of the health services company still opened 2.0% up on Wednesday.
UnitedHealth cancels investor day
Brian Thompson has been leading the largest US health insurer since April, 2021.
He was immediately taken to the Mount Sinai West hospital following the shooting but was pronounced dead upon arrival, as per the NYPD representative.
We are investing the incident as a targeted attack but are yet to make any arrests – the suspect, however, is a white male in black pants, black hoodie, and a grey backpack.
He used a gun with a silencer to shoot the 50-year-old man, they added.
UnitedHealth is yet to officially confirm if the victim was indeed its executive Brian Thompson.
But it did cancel its investor day that was being hosted at the New York Hilton hotel in midtown, Manhattan on Wednesday.
“Some you may know we’re dealing with very serious medical situation with one of our team members.
And as a result, I’m afraid we’re going to have to bring to a close the event today,” the company’s staff told its investors today.
UNH issued conservative guidance in November
In October, UNH reported its financial results for the third quarter that topped Street estimates.
Still, the health services giant issued conservative guidance at the time citing expected weakness in its government-driven health insurance segment.
UnitedHealth now expects to earn up to $30 a share in 2025. Analysts, in comparison, had called for a higher $31.18 per share.
Still, Cantor Fitzgerald analyst Sarah James continues to see it as a “gold standard stock”.
UNH currently pays a dividend yield of 1.36% that makes it even more attractive for the income investors.
Is UnitedHealth stock worth buying?
UnitedHealth shares have done exceptionally well in recent months but Wells Fargo analyst Stephen Baxter continues to see further upside in 2025.
Baxter reiterated his “overweight” rating on UNH last month and raised his price target to $670 that suggests about a 10% upside from current levels.
The investment firm acknowledged recent concerns but said Medicare Advantage risk-reward will likely improve as Donald Trump is sworn into office in January.
Baxter is bullish on UnitedHealth stock even though its medical costs surpassed expectations in the latest reported quarter as it paid more but received lower reimbursements on its government-backed plans.
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