Wall Street Breakfast UnitedHealth slides on report of nursing home kickbacks
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May 21, 2025 UnitedHealth Group faces serious allegations regarding kickbacks to nursing homes, raising ethical concerns about patient care. Meanwhile, Target's disappointing Q1 results lead to revised guidance, and Wolfspeed's stock is under pressure due to bankruptcy rumors. The conversation also touches on the stability of the industrial sector, which remains a strong buy, and speculates on stock volatility for Manchester United tied to an upcoming match.
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UnitedHealth Nursing Home Controversy
- UnitedHealth Group allegedly paid nursing homes secret bonuses to reduce hospital transfers, raising health risk concerns.
- The company denies suppressing transfers and claims partnerships improve health outcomes, saving costs.
UnitedHealth Risks and Recovery Delay
- UnitedHealth shares recovered partly due to insider buying after a leadership shakeup and DOJ probe news.
- Analysts warn 2025 earnings guidance cancellation raises downside risk and delays recovery.
Target's Earnings and Market Share Challenge
- Target's Q1 sales fell 3.8%, missing expectations, and it lowered full-year EPS guidance to $7-$9 from $8.34 consensus.
- Target maintains market share in fewer than half of their tracked categories and aims to avoid raising prices with tariff strategies.