The actions of Unitedhealth collapse after the resignation of the CEO, the insurer suspends the forecasts

• UNH shares fall 10% to a minimum of four years after the suspension of the guide by 2025.
• UnitedHealth is experiencing continuous increases in medical care costs.
• The Andrew Witty CEO resign, President Stephen Hemsley assumes the position.
• The US CPI for April was lower than consensus forecasts.

The actions of UnitedHealth Group (UNH) fell 10.4% in Tuesday’s premarket after the largest private health insurance in the United States announced that it would suspend the guide for 2025 due to the increase in medical care costs. The mass sale caused the shares to fall to a minimum of more than four years about $ 340.

In addition, the Minnesota -based company announced that the Andrew Witty CEO would leave its post immediately and that President Stephen Hemsley would replace him.

“We are grateful for Andrew’s direction in UnitedHealth Group, especially during some of the most challenging moments that any company has faced,” Hemsley said in a statement.

The industrial average Dow Jones (DJIA) is feeling the impact of the mass sale of UNH shares. The index of 30 major shares fell 0.4% on Tuesday because UnitedHealth is one of the largest participations of Dow Jones. Meanwhile, Nasdaq Composite rises 0.5%. The market in general is optimistic after the US Consumer Price Index (CPI) for April was published before market opening by 2.3% year -on -year, below the annual inflation level of 2.4% that analysts had predicted.

News about the actions of UnitedHealth Group

Hemsley was previously the CEO of the company, which consists of the United Healthcare Insurance Unit and the Pharmaceutical Benefits Manager Optum, from 2016 to 2017. Before becoming president in 2017, Hemsley was director of Operations in 1997 and President in 1999.

UNH’s actions were already in decline before Tuesday’s news. The shares fell more than 22% on April 17 after the publication of the company’s quarterly profits, which saw the address cut the earning guide per action (EPS) by 2025 in about 12%. The midpoint of 29.75 per share was reduced to an average point of 26.25 $ due to the increase in medical care costs, particularly in its Medicare Advantage plans. Due to the highest medical expenses relationship, the company said in a statement that would take up to 2026 to grow again.

Witty’s resignation occurs after the repercussions of the murder of the CEO of Unitedhealthcare, Brian Johnson, in December 2024, an important news that demonstrated the frustration of some Americans with the high denial rate of medical claims of the health insurer.

In addition, UnitedHealth has seen movements among executives recently. On May 6, Patrick Conway spent his position as CEO of Optum Rx to lead the entire Optum unit. He replaced Heather Cianfrocco, who became an executive vice president of governance, compliance and information security in UnitedHealth Group.

In an executive order on Monday, Optum was also in the sights of the president of the US, Donald Trump, while exposing a position to eliminate the “medication intermediaries” in the US health system in an attempt to reduce the prices of prescription medications.

Unitedhealth Group actions forecast

The mass sale on Tuesday places UNH’s shares back to its price level in March 2021 and well below the historical maximums of November 2024 above $ 630. This represents a 46% drop from the peak to the minimum.

The market will see this as unusual for an action that is normally an important participation of the institutions due to its long -term growth profile greater than the average. Although investors in value will be increasingly interested in UNH shares at this price level, the Fibonacci extension tells us that the next point of interest is well below, at $ 313.19. That is 161.8% FIBO and is approximately 8% below the opening price level on Tuesday.

UNH DAILY ACTION GRAPH