Inside The $101.5M Sell-Off That’s Making UnitedHealth Execs Look Guilty as Sin

The UnitedHealth CEO shooting has somehow racked up more podcast hours and hot takes than the attempted Trump assassination. Seriously, comedians are running wild with it. And believe it or not, there’s an ongoing debate (yes, an actual debate) about whether taking someone out in cold blood is ever “justified.” We live in some crazy times.

But I know why you’re here. You’re not here for moral debates or stand-up routines. You’re thinking, “What does this have to do with stocks?” Glad you asked, because today I’m not gonna rehash a bunch of conspiracy theories of why this guy went to McDonald’s with the smoking gun. Instead, we’re going to talk about how Brian Thompson suspiciously pocketed $15.1 million through what looks a lot like insider trading.

(Source: New York Post)

Back in February, Thompson sold off 31% of his UnitedHealth stock, cashing out $15.1 million. Timing, as they say, is everything… and Thompson’s timing was suspiciously perfect. Just 11 days later, the Wall Street Journal published a report on a DOJ antitrust investigation into UnitedHealth. What happened next is anything but surprising, the stock dropped 5% and $18.6 billion in market cap was wiped out overnight.

And Thompson wasn’t the only one. Other UnitedHealth bigwigs, including CEO Andrew Witty and executive chairman Stephen Hemsley, dumped a combined $101.5 million in shares right before the news broke. It’s almost like they knew something was coming… The Hollywood Firefighters’ Pension Fund wasn’t about to sit back and let this slide. In May, they filed a lawsuit accusing Thompson, Witty, and Hemsley of cooking up a scheme to keep the DOJ investigation under wraps and artificially inflate UnitedHealth’s stock price. While these executives were busy cashing out, regular investors were left holding the less valuable bag.

And if you’re about to defend this as just a coincidence… you should know that Thompson’s trade wasn’t just big… it was weird. It was his first major stock sale since taking the CEO gig in 2021, and the options he cashed in weren’t even close to expiring. Talk about red flags. The Justice Department wasn’t investigating for funsies. At the heart of their probe was UnitedHealth’s $3.3 billion bid to acquire Amedisys, a major player in the home health and hospice sector. The DOJ argued the merger would stomp out competition, harm patients, and jack up costs (all bad things).

Of course, UnitedHealth tried to smooth things over by offering to sell off some overlapping facilities, but the DOJ wasn’t impressed. They claimed the deal would still harm over 100 markets generating more than $1 billion annually. Corporate governance expert Charles Elson said it best: “The timing here will undoubtedly invite questions.” You don’t say.

Now, let’s get real. Sure, the recent dip might make UnitedHealth’s stock look like a good “buy the dip” opportunity. But let’s crunch some numbers: the stock is still trading at around 22x earnings… above the industry average. Toss in legal fees, regulatory uncertainty, and the looming threat of hefty fines, and suddenly that “bargain” feels more like a trap. For a stock to bounce back from scandals like this, you need either a killer growth story or a bargain-bin valuation. UnitedHealth has neither. The DOJ probe casts a long shadow over its future, and the insider trading accusations are like a ticking PR time bomb.

Between the lawsuits, investigations, and a boardroom full of questionable decision-makers, this stock isn’t a “buy the dip” moment. It’s a “grab some snacks and watch” scenario. Because let’s face it, UnitedHealth is looking more like the next big Netflix docuseries than a smart investment. Tiger King walked so this could run.

PS: If you want to have full access to our Insider Trader Tool and look up “insider activity” on any publicly listed company (so you don’t get get stuck holding the bag), all you have to do is become a Stocks.News Premium member (it’s less than the cost of a HBO Max subscription). Go here and start legally piggybacking the insider’s trades.

Stock.News has positions in McDonald’s and Netflix.