What's Going On With UnitedHealth Stock Today?

Shares of UnitedHealth Group UNH are trading lower Tuesday as the company faces intensifying scrutiny from both regulators and investors.

What To Know: The company's stock has dropped 42% year-to-date and 30% in just the past month, reflecting deep technical weakness and growing investor unease.

UnitedHealth is trading well below all major moving averages, including the 20-day, 50-day and 200-day simple moving averages. The stock sits far below its 200-day SMA of $526.44, as well as its 50-day SMA of $446.43. The Relative Strength Index (RSI) is at 26.75, a clear oversold signal, while the MACD has plunged to negative 45.29, pointing to continued downside momentum.

Investor positioning is mixed. Citadel Advisors significantly reduced its position in the first quarter, cutting more than 800,000 shares and trimming its stake by over 50%. In contrast, Fisher Asset Management took the opposite side of the trade, increasing its position by nearly 53% with a 1.82 million share purchase. This split among institutional investors highlights growing uncertainty about UnitedHealth's outlook.

As previously reported by Benzinga, some users on Reddit’s WallStreetBets have started placing big bets on the stock, anticipating a bounce following the steep sell-off. UnitedHealth has been trending on various social platforms and was among the most mentioned stocks on the subreddit again on Tuesday.

UnitedHealth added 700,000 new clients in the latest quarter as the company benefits from its vertically integrated structure combining UnitedHealthcare and Optum. Despite concerns about rising medical costs and regulatory scrutiny, bulls argue the stock is undervalued, trading at 12.85 times forward earnings, per Benzinga Pro.

The current setup has triggered debate: some see UnitedHealth as a broken chart with regulatory risk, while others see a long-term opportunity in an oversold, underappreciated healthcare giant.

UnitedHealth is the biggest loser in the Dow Jones on Tuesday and one of only two names in the index currently trading lower. Meanwhile, the S&P 500 was last up about 2% for the session.

UNH Price Action: UnitedHealth shares were down 1.23% at $291.98 at the time of publication, according to Benzinga Pro.

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