UnitedHealth drops 5% on antitrust investigation

UnitedHealth Group (UNH.US) is the worst performing S&P 500 stock today and drops around 5% on the day. The drop comes after Bloomberg reported that US Department of Justice launched an antitrust investigation into the company.

Bloomberg report is based on the information provided by an anonymous informant suggests that regulatory concerns primarily focus on the conversion of the insurance branch's customers into customers of the Optum executive arm. The most well-known insurance unit of the company, UnitedHealthcare, covering over 47 million Americans, is gaining a growing share of revenues and profits from companies providing healthcare services under its Optum executive arm. Optum clinics offering home care services, creating drug plans, and delivering medications often provide services to UnitedHealthcare members, allowing the company to transform insurance-related expenses into revenue for Optum. This arrangement has historically helped drive the growth of UnitedHealth.

Taking a look at UnitedHealth chart (UNH.US) at D1 interval, we can see that the stock is plunging below 200-session moving average (purple line) and $505 support zone today. Stock is trading at the lowest level since January 24, 2024. The near-term support zone to watch should declines continue can be found in the $475 area.

Source: xStation5