The actions of UnitedHealth fall 23% when they cut their annual projection

• The market trembles while Unitedhealth cuts its projection by 2025 in more than 10%.
• The largest US insurer sees a great increase in medical care expenses.
• UNH shares are beaten by a historical mass sale, lowering more than 23%.
• The next stop for UNH shares is the minimum of February 21 at $ 438.50.

UnitedHealth Group (UNH) Face one of the greatest mass sales in its history on Thursday. The shares have lost around 23% at the time of writing these lines near noon in New York, falling from $ 585 to $ 450.

Despite producing a rare disappointment both in income and in profits in its results of the first quarter, the largest private health insurer in the United States also cut its forecast for the year.

His health insurance unit, Unitedhealthcare, paid a higher level of medical care, and its pharmaceutical unit, Optum Health, faced a lower limb base and changes in Medicare reimbursement.

Although the majority of the actions of the industrial average Dow Jones (DJIA) obtained profits, the unexpected fall of UNH’s shares has pushed the index down 1.3%. The S&P 500 is slightly green at the same time.

News about the actions of UnitedHealth Group

In Thursday’s premarket, UnitedHealth reported earnings adjusted per share (EPS) of 7.20 on revenues of 109.58 billion dollars. The EPS did not reach the consensus of Wall Street for 9 cents, while the income figure failed for around 2 billion dollars.

This is a rare territory for Unitedhealth, which tends to overcome and increase its guide almost every quarter. In the last five years, the health insurer has failed in his consensus of income only twice and has not failed once in his EPS consensus.

“We are aggressively addressing those challenges to position ourselves well for the coming years and return to our long -term gains growth rate from 13 to 16%,” said CEO Andrew Witty.

The income of the health insurance unit was higher than anticipated, but this was eclipsed by the relationship of health expenses that reached 84.8% compared to 84.3% in the same period of the previous year. UnitedHealth has long tried to maintain this relationship closer to 82%, but has increased for six consecutive quarters. In particular, medical expenses for their Medicare Advantage plans have exceeded expectations.

However, their Optumhealth and Optuminsight units, both, did not reach the consensus objectives for income, since both saw their income falls with respect to the previous year in a big surprise.

The company has reviewed its guide for EPS adjusted by 2025 to between $ 26 and $ 26.50, below the consensus of 29.74 $ Wall Street. This is equivalent to a 11.7% reduction in profits for the year.

Unitedhealth Group actions forecast

The next stop for the operators is $ 438.50 for the shares of United Group. That was the minimum of February 21 for another massive sale pronounced. Below, there is another minimum of April 12, 2024 about $ 436. The 50% midline in the Fibonacci extension is also close to the minimum of February 21 in 442.22 $, which gives credibility to a support within this region.

However, the operators will notice that UNH’s shares crossed the region of 465 $ to $ 480, which has often acted as a demand zone in previous falls. This could mean that the bearish trend has a route.

UNH DAILY ACTION GRAPH