UnitedHealth Retail Traders Turn Bearish After Leaked Memo Shows Investor-Appeasing Steps Ahead Of Shareholder Meeting

Retail sentiment around UnitedHealth Group turned cautious after the company reportedly prepared a confidential internal memo ahead of its June 2 shareholder meeting, to coordinate responses aimed at allaying shareholder concerns about its business practices and reassure them about a return to growth and profitability, according to STAT. 

The stock closed at $300.38, down 0.3% on Wednesday, but edged up 0.1% to $300.80 in after-hours trading.

The document appears to respond to a lawsuit alleging the company hid anticonsumer practices, including unethical claims denials that boosted profits.

Shareholders accuse UnitedHealth of becoming conservative with claims denials after the 2024 murder of Brian Thompson, CEO of its insurance unit, sparking controversy over AI-driven mass denials. 

UnitedHealth denies wrongdoing and vows to maintain Thompson’s business approach, STAT reported.

In a statement, UnitedHealth Group said it "inadvertently emailed a draft document to STAT that is available online and contains public information," according to The Fly.

After missing Q1 targets, the company withdrew its 2025 guidance, citing rising healthcare costs. 

With Stephen Hemsley back as CEO, the 18-page memo—labeled “privileged and confidential” by STAT—outlines his staffing and process changes to address investor concerns.

The document also seeks to justify Hemsley’s newly approved $60 million compensation package despite the company’s stock hitting a five-year low, arguing the pay is justified by a return to traditional leadership, STAT added.

On Stocktwits, retail sentiment was ‘bearish’ amid ‘low’ message volume.

One user noted that the company’s new CEO should issue guidance as soon as possible, saying it’s the only factor that could significantly boost the stock price since investors dislike uncertainty. 

They observed that retail investors were buying options while institutions appeared to be selling, suggesting the stock might remain range-bound until the guidance and earnings report. 

Another user questioned the timing of the CEO’s leaked memo to the press, speculating whether it was a tactic to lower the share price for a potential purchase of an additional 30 million shares.

The stock has declined 40.5% so far in 2025.

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