UnitedHealth (UNH) recently appointed an experienced healthcare executive, Wayne S. DeVeydt, as its new chief financial officer. This move resulted in his immediate resignation from the board of rival insurer Centene Corporation (CNC). UNH stock was up 4.2% on Tuesday’s regular trading session.
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DeVeydt’s departure came just one day after UnitedHealth revealed he would be replacing longtime finance chief John Rex in early September. His employment agreement includes a non-compete clause that stops him from working with any business that competes with UnitedHealth.
Centene, a $12.8 billion healthcare provider, confirmed the resignation and said it would not seek a replacement for DeVeydt. Instead, the company will reduce its board size to 10 from 11 members.
DeVeydt’s appointment comes at a critical moment for UnitedHealth. The company is facing regulatory scrutiny, rising medical costs, and a sharp decline in investor confidence. UNH stock has plunged over 50% year-to-date.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, three Holds, and two Sells assigned in the last three months. At $318, the average UnitedHealth stock price target implies a 26.68% upside potential.
