UnitedHealth (UNH) announced the appointment of Wayne S. DeVeydt as the new chief financial officer (CFO) of the company, replacing John F. Rex. The CFO change comes as the insurer faces several challenges, including rising medical costs and a probe by the Department of Justice (DOJ) into its billing practices.
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The CFO change follows the abrupt departure of Andrew Witty as CEO of the company in May 2025, when UNH suspended its full-year guidance due to elevated medical costs. Witty was succeeded by Stephen Hemsley as the new CEO of the company.
About UNH’s New CFO
DeVeydt most recently served as the managing director and operating partner at Bain Capital, focusing on operational improvement and growth acceleration. Interestingly, his previous experience includes his tenure as the CFO of UNH’s rival Elevance Health (ELV), formerly known as Anthem, Inc.
Rex will become a strategic adviser to UnitedHealth’s CEO Stephen Hemsley after stepping down as CFO, a role that he assumed in 2016.
UNH Faces Tough Times
UNH and its peers in the insurance industry are grappling with higher medical costs in Medicare Advantage plans. The departure of Rex as the CFO of the company follows the recent Q2 earnings miss. UnitedHealth stated that its healthcare expenses went up much faster than the premiums it charged in the second quarter.
Also, UnitedHealth issued guidance for 2025, which fell short of Wall Street’s expectations due to higher-than-expected medical costs. The company expects to return to earnings growth in 2026.
Following the Q2 results, Baird analyst Michael Ha downgraded the rating for UNH stock to Sell from Hold and slashed the price target to $198 from $312. He particularly noted the weakness in OptumHealth, UnitedHealth’s health-services arm. Several other analysts also lowered their price targets for UNH stock.
Is UNH a Good Stock to Buy Now?
Given the ongoing challenges, Wall Street is cautiously optimistic on UnitedHealth stock, with a Moderate Buy consensus rating based on 18 Buys, three Holds, and two Sell recommendations. The average UNH stock price target of $321.76 indicates 28.9% upside potential from current levels. UnitedHealth stock has plunged 51% year-to-date.
