Stock Market
đ„ UnitedHealth Just Got Its Face Ripped Off â But Insiders Are Backing Up the Truck
đ» Welcome to the $UNH Bloodbath
This week, UnitedHealth ($UNH) didnât just dip â it imploded. Weâre talking full-on meltdown mode.
- -CEO walked out the door (or got kicked).
- -2025 guidance? Trashed.
- -DOJ probe into Medicare Advantage? Front page of the Wall Street Journal.
- -Stock? Down 24% on the week, smoked down to COVID lows.
- -Tuesday? A historic -18% in one day. Nuked. Toasted. Vaporized.
This wasnât your average bad earnings report. This was a category 5 firestorm in a mega-cap Dow component.
đ§š The DOJ Hit Drops
If it wasnât bad enough, Thursday hits: WSJ leaks that the DOJ is running a criminal investigation into UNHâs Medicare billing practices. Allegations of fraud. Not civil â criminal.
Wall Street panic levels hit max. Traders dumped like it was 2008. UNH touched $249 intraday, a level not seen since Trumpâs first year in office.
đ The Chart Looks Like a Cliff Dive
This wasnât a gentle pullback. It was a face-ripping collapse on record volume. Highest weekly trading volume since 1998. RSI? Oversold. Momentum? Straight to hell.
But hereâs where it gets spicyâŠ
đ° Insiders Went Shopping
Friday afternoon, SEC Form 4s hit the tape and boom â insiders went all-in on the dip:
- Stephen Hemsley (Chairman, now CEO again): Bought 86,700 shares at ~$288.5 = $25M
- John Rex (CFO): Bought 17,175 shares at ~$291 = $5M
- 3 other directors piled in with buys ranging $100Kâ$1M
This wasnât option exercises. This wasnât window dressing. These dudes dropped real cash â over $30 million â into one of the ugliest charts on the market.
You donât do that unless you know the ship isnât sinking.
đ The Bounce: Is That the Bottom?
Friday, $UNH reversed hard. Opened weak. Closed strong. Ended the day +6.4%.
Dead cat bounce? Maybe.
But after record volume, multi-decade lows, DOJ panic, and the C-suite loading up the truck, this had all the signs of a potential capitulation bottom.
Traders are watching this like hawks.
đ Key Levels to Watch
- Support:Â $249 â Thatâs the line. Break that, and itâs a trip to $212 city.
- Resistance:Â $325 â Needs to reclaim this zone to build a base.
- Above $365? Now weâre talking real reversal.
For now, you scalp the swings, follow the flow, and donât marry your bags.
đ§ What Are the Suits Saying?
- RBC:Â Slashed target from $525 â $355. Still bullish.
- Mizuho:Â Cut target to $350. Called the drop âunprecedented.â Staying long.
- Wolfe & JPM:Â Still backing the name. Said the Medicare probe wonât nuke the biz.
Translation: The big brains think this stock got oversold. Valuation is dirt cheap at 11x earnings. This ainât a meme stock â itâs a cash-generating monster that just hit a brick wall.
âïž Trade Plan
If youâre a trader:
- This is prime meat for volatility junkies
- Risk: DOJ headlines, guidance blackout, fraud fears
- Reward: Oversold bounce, valuation reset, insider signal
For the degens: scalp the spikes, play the levels.
For the investors: this might be Buffett-style blood-in-the-streets territory. But size accordingly â the risk isnât fake.
đŹ Final Word
$UNH just went from the golden child of healthcare to the dumpster fire of the Dow in one week.
But when the CEO buys $25 million worth of stock after a crash, you pay attention. This isnât Reddit hopium â this is real conviction.
Respect the bounce. Trade the volatility. And stay strapped in.