UnitedHealth stock price inched up in the pre-market session on Friday, gaining 0.1% to trade at $297. The stock declined in the last two sessions in succession as the momentum created by insider purchases waned. However, many investors are still not convinced that’s enough to turn around the company’s fortune in the near-term following a spate of wrong turns in its fundamentals.
The company is America’s largest medical insurer, with about 29 million customers signed on, accounting for 15% of the market share. In addition, its $269 billion market capitalization creates an impression of a well-endowed corporate juggernaut with the muscle to cushion itself against its current predicaments. However, if there’s one thing that the world learnt in 2008 economic recession, its that no company is too big to fail.
In a space of hardly six months, UnitedHealth (NYSE: UNH) has lost two CEOs- one through a fatal shooting and the other through resignation. Additionally, its Medicare Advantage program is under a blend of regulatory and public scrutiny, with claims of underhand business tactics creating bad PR and eroding investor confidence. Also, it has withdrawn its previous guidance for 2025 earnings
Ultimately, this could be the inflection point for the company. A clean bill of health by Centers For Medicare and Medicaid Services could certainly diffuse a significant amount of pressure. However, it could take a longer time for the American public to change their perception. Meanwhile, the troubles have pilled up after HSBC lowered UnitedHealth share price target by about 45% from $490 to $270, implying a 9% drop from the current level.
UnitedHealth Stock Price Prediction
UnitedHealth stock price pivots at $300 and resistance at that level calls for further downside. The stock will likely find support at $294 initially. However, an extended control by the sellers will break below that level and test $291.
Alternatively, going above $300 will shift the momentum to the upside. With the buyers in control, the stock will likely encounter the first resistance at $302. Breaking above that level will invalidate the downside thesis. Also, an extended control by the buyers will send the price higher and potentially test $305.
