UnitedHealth Group Inc (NYSE:UNH) is down a staggering 46% from its April peak of $630, and a troubling mix of leadership shake-ups, DOJ and CMS probes, and guidance withdrawals have weighed heavy.
Source: TradingView
But amid the chaos, insiders — and surprisingly, members of Congress — are scooping up shares.
What's Dragging UNH?
UNH stock is down over 38% year-to-date, with its descent beginning in April. Factors that have contributed to the slide, include:
- A massive earnings miss and retreat on 2025 guidance, which triggered a 50% plunge from March highs.
- Leadership turbulence didn't help: CEO Andrew Witty resigned, and board chair Stephen Hemsley returned just days later.
- Legal risks abound: DOJ criminal probes and CMS Medicare Advantage audits intensify.
Read Also: New Congressman’s First Stock Trade Tanks 45% After Betting On UnitedHealth Before Fallout
Government & Insiders: Buying The Dip
In an unusual twist, Congress members like Texas Rep. Michael McCaul and Georgia Rep. Marjorie Taylor Greene have been buying UNH shares worth thousands — even after the earnings crash.
Meanwhile, returning CEO Stephen Hemsley pumped in $25 million, and other executives also invested heavily. Reddit even flagged "[insiders] directors and executives buy over $30 M of the beaten down stock.”
Technicals & Valuation: A Mixed Bag
Chart created using Benzinga Pro
UnitedHealth trades at $312.44, above its eight and 20-day SMAs (simple moving averages), signaling short-term buying interest. But it’s below the 50-day ($334.70) and 200-day ($491.61) SMAs, and the MACD (moving average convergence/divergence) is negative, suggesting the downtrend isn't over. The RSI (relative strength index) at 47.06 is neutral, leaving room for upside.
Valuation metrics—with P/E at~13.7, PEG ~0.87, EV/EBITDA ~9.4—seem to paint the picture of a deeply discounted insurer.
Is UNH's fall a value opportunity – or a warning? With politicians and insiders buying, there’s a strong signal that the dip might be nearing its end.
But unresolved regulatory concerns and leadership instability could still derail recovery. Watch the 50-day SMA (~$334.70) as a potential pivot point. Close above it, and the bounce could gain steam; below, the pain might persist.
Read Next:
Image: Shutterstock
