UnitedHealth Hits 2008-Era Oversold Levels As Citadel Advisors Sells, Fisher Buys

UnitedHealth Group Inc. UNH is officially in the technical doghouse. The healthcare titan just plunged to its most oversold level on both the weekly and monthly charts since the 2008 financial crisis, according to Barchart.

The stock has cratered 42% year-to-date, and a staggering 30% in just the past month—leaving even the most hardened bulls shell-shocked.

Read Also: As UnitedHealth Wipes Out ‘Unthinkable’ $140 Billion In Market Value Since April, Analysts Weigh In On The Road Ahead

UNH Stock Breaks Down Technically

Chart created using Benzinga Pro

From a technical standpoint, the damage is widespread. UNH stock is trading well below its eight-day, 20-day, 50-day and 200-day simple moving averages (SMA), sending a firm bearish signal. UNH stock, at $293.58, is a far cry from its 200-day SMA of $526.44, 50-day SMA of $446.43, and even its short-term 20-day SMA of $348.43. Its eight-day simple moving average is also above current levels, adding insult to injury.

The Relative Strength Index (RSI) sits at a rock-bottom 26.75—firmly in oversold territory—while the Moving Average Convergence Divergence (MACD) indicator has sunk to a negative 45.29, both underscoring the severity of the downtrend.

Big Money Split: Griffin Sells, Fisher Buys

But the market isn't speaking in one voice. Hedge fund titans are divided. Citadel Advisors slashed its stake in UnitedHealth by over 50% in the first quarter, unloading nearly 800,000 shares. Meanwhile, Ken Fisher of Fisher Asset Management saw a buying opportunity, scooping up 1.82 million shares and increasing his position by nearly 53%.

Under the hood, UnitedHealth remains a healthcare juggernaut. Its vertically integrated model—uniting insurance through UnitedHealthcare and services via Optum—gives it unique operating leverage. Even in the latest quarter, it added a record 700,000 new clients.

Despite mounting concerns over medical costs and compliance issues, bulls argue the fundamentals are intact and the valuation—12.8 times forward earnings, per Benzinga Pro data—is too good to ignore.

Oversold, Undervalued, Or Uninvestable?

In other words, while the charts flash red, some see green shoots. With oversold signals not seen in 16 years, UnitedHealth might be setting up for a classic contrarian rebound—assuming it can patch up its fundamentals and shake off the regulatory cloud.

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