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đŸ’„ UnitedHealth Just Got Its Face Ripped Off – But Insiders Are Backing Up the Truck

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đŸ”» Welcome to the $UNH Bloodbath

This week, UnitedHealth ($UNH) didn’t just dip — it imploded. We’re 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 wasn’t your average bad earnings report. This was a category 5 firestorm in a mega-cap Dow component.


🧹 The DOJ Hit Drops

If it wasn’t bad enough, Thursday hits: WSJ leaks that the DOJ is running a criminal investigation into UNH’s Medicare billing practices. Allegations of fraud. Not civil — criminal.

Wall Street panic levels hit max. Traders dumped like it was 2008. UNH touched $249 intraday, a level not seen since Trump’s first year in office.


📉 The Chart Looks Like a Cliff Dive

This wasn’t 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 here’s where it gets spicy



💰 Insiders Went Shopping

Friday afternoon, SEC Form 4s hit the tape and boom — 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 $100K–$1M

This wasn’t option exercises. This wasn’t window dressing. These dudes dropped real cash — over $30 million — into one of the ugliest charts on the market.

You don’t do that unless you know the ship isn’t sinking.


📈 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.


🔍 Key Levels to Watch

  • Support: $249 – That’s the line. Break that, and it’s a trip to $212 city.
  • Resistance: $325 – Needs to reclaim this zone to build a base.
  • Above $365? Now we’re talking real reversal.

For now, you scalp the swings, follow the flow, and don’t marry your bags.


🧠 What Are the Suits Saying?

  • RBC: Slashed target from $525 ➝ $355. Still bullish.
  • Mizuho: Cut target to $350. Called the drop “unprecedented.” Staying long.
  • Wolfe & JPM: Still backing the name. Said the Medicare probe won’t nuke the biz.

Translation: The big brains think this stock got oversold. Valuation is dirt cheap at 11x earnings. This ain’t a meme stock — it’s a cash-generating monster that just hit a brick wall.


⚔ Trade Plan

If you’re 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 — the risk isn’t fake.


💬 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 isn’t Reddit hopium — this is real conviction.

Respect the bounce. Trade the volatility. And stay strapped in.

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