UnitedHealth Group Incorporated (UNH): Jim Cramer Says Lots Of Insider Buying Is A Great Sign

We recently published a list of Jim Cramer Says Trump’s One Big, Beautiful Bill Is Pro Growth & Discusses These 12 Stocks. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other stocks that Jim Cramer discusses.

UnitedHealth Group Incorporated (NYSE:UNH), the largest health insurer in America, has been a regular feature of Cramer’s morning show lately. The stock is down by a whopping 41% year-to-date due to a disastrous earnings report in April. The earnings report was one of the worst in UnitedHealth Group Incorporated (NYSE:UNH)’s history, and it sent the shares tanking by an unbelievable 27%. The days after the report weren’t kind to the stock either as multiple reports claimed that it was being investigated. Cramer commented on one such report and ratings action from HSBC:

“Oh UNH is up.

“The things that they, I mean I thought that this was about as strongly denied, they’ve not denied the other stuff.

“Oh the HSBC, that’s really early.

“Well Mr. Hemsley bought so much stock. You see those insider buys, from smart people. Those are not idle. It’s not an idle buy. . .I think Hemsley’s money. He’s money. He’s very good.”

In fact, Cramer’s been citing insider buys as evidence of robust management at UnitedHealth Group Incorporated (NYSE:UNH) for quite some time. Here are his recent remarks:

“People sell things for many reasons, right. They get divorced, I don’t know about that. They get maybe something happens in their family, they need money. But David, why do they buy? Sometimes they buy because there’s a bargain. Now typically these insiders, maybe they buy like 1500 shares. Well how about if you bought, you’re Stephen Hemsley, returning CEO, who acquired 86,000 shares at 288. That’s pretty, you know 25 mil.

“And then, Kristen Gil, director, what, 3700 shares. Timothy Patrick, director, 1553. The CFO, come right in, the CFO’s in there buying the heck out of it too. 5 million. So I just say to myself, if they really knew, like the Journal says that they’re being investigated criminally, that’s a very big buy that would obviously go away.

“Absolutely, but remember it is a fine company. I don’t think the franchise, unless it’s indicted, is going to go away. So let’s just say [inaudible] I was convinced that maybe we’re too negative. At the 300 level.”

Overall, UNH ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of UNH, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.