UnitedHealth (UNH) shares lost more than 15% this morning after Andrew Witty, the company’s chief executive, announced a surprise resignation, citing “personal reasons.”

However, the seasoned executive will remain with UNH as an advisor to his successor, Stephen Hemsley, according to the healthcare giant’s press release on Tuesday. 

Including today’s selloff, UnitedHealth stock is down nearly 50% versus its year-to-date high. 

Why Else Is UnitedHealth Stock Tumbling on Tuesday?

Investors are bailing on UNH shares because the NYSE-listed firm pulled its full-year outlook, citing higher-than-expected medical costs as well on Tuesday. 

UnitedHealth suspended guidance also because “care activity continued to accelerate while also broadening to more types of benefit offerings than seen in the first quarter.”

The insurance behemoth, however, expects a return to growth in 2026, its press release added. 

That said, the UNH share price decline this morning may have created a buying opportunity for long-term investors, given Mizuho analysts continue to see upside in the healthcare stock to $515.  

Their price objective signals potential for a more than 60% rally from current levels. 

Mizuho Says Leadership Change Is a Positive for UNH Shares

Mizuho analysts dubbed Witty stepping down as the chief executive of UnitedHealth a “positive” in their research note on Tuesday. 

A leadership change was “badly needed” at the healthcare giant following a total loss of confidence in its management due to its failure “to predict [recent] business challenges.” The management’s delayed response was responsible for “leaving the Street in a lurch,” they added. 

Note that UNH shares currently pay a healthy dividend yield of 2.66% that makes for another good reason to have them in your investment portfolio.  

However, the largest U.S. provider of Medicare Advantage plans reported disappointing earnings for its first financial quarter in April. 

Wall Street Remains Bullish on UnitedHealth

Mizuho is among a long list of Wall Street firms that remain bullish on UnitedHealth stock in 2025. 

Despite its poor year-to-date performance, analysts haven’t bailed on UNH shares yet. The consensus rating on the healthcare stock currently sits at “Strong Buy” with a mean target of about $557 indicating potential upside of more than 70% from here.