UnitedHealth stock price was the biggest gainer in the Dow Jones Index on Monday as the beleaguered health insurance giant fights to win back investor confidence through insider buybacks. The stock closed the session at +8.21%, registering a second successive gain after previously dropping to five-year lows of $248 on the heels of its CEO’s resignation.
Strong Fundamentals With A High Risk
The stock extended its newfound upward momentum in Tuesday’s premarket session, trading at $324 at the time of writing after gaining 2.8% on the daily chart. That means UnitedHealth stock price has gained more than 17% since last Friday-a formidable rebound despite its ongoing struggles.
The company’s intrinsic worth is uncontested- a $286 billion market cap makes it one of the largest healthcare companies in the world- and its long-running record of profitability makes it a valuable asset in any investor’s portfolio. However, it has to fight off an ongoing investigation by the Department of Justice into its Medicare Fund for potential criminal liability. If found culpable, it could potentially have deleterious consequences.
That said, the recent insider purchases, including a $25 million stock purchase by returning CEO Stephen Hemsley has boosted investor confidence. In addition, the new CEO’s tenure begun with the withdrawal with the withdrawal of a previous not-so-rosy guidance issued for 2025.
In addition, the company’s 15-year history of dividend increase and an A+ credit rating is a strong proposition for investors across institutional and retail spectrums. In addition, UnitedHealth stock price is down by 37% year-to-date, presenting an enticing buying opportunity.
UnitedHealth Stock Price Prediction
UnitedHealth stock price pivots at $318 and the momentum calls for further upside. The first resistance will likely be at $327, but a stronger momentum will clear that barrier and potentially push the action higher to test $335.
Alternatively, the momentum will shift to the downside if the price goes below $318. That will likely see the first support at $307. Breaking below that level will invalidate the upside narrative. In addition, the resulting momentum could push the action lower to test the second support at $300.
