UnitedHealth Group sinks another 15% while the Justice Department opens an investigation for fraud in Medicare

• UNH’s shares fall about 15% after an article of the Wall Street Journal.
• The Journal alleges that fraud investigators of the Department of Justice are close to accusing the company.
• US retail sales by April increase only 0.1% monthly.
• UNH shares fall to $ 253, a minimum of five years.

When it rains, it rains to pitchers, friends! UnitedHealth Group (UNH) Face its fourth mass sale in a single session that exceeds 15% on Thursday, after the US Department of Justice opened a case of fraud against the largest private health insurer in the country.

UNH shares are quoting approximately 15.6% lower on Thursday, while their main index, the Dow Jones Industrial Avenge (Djia)it loses some recent profits in light of the deceleration of consumer spending.

The Retail sales The US for April were published early on Thursday and show a strong reduction in purchasing power. The main figure showed a 0.1% growth in monthly terms, which was technically better than the expectation of 0.0%, but was lower than the monthly increased increase of 1.4% observed in March. The US retail sales group reached -0.2% compared to 0.5% in March.

In addition, in the company’s quarterly gains call, the Walmart CEO (WMT)Doug McMillon, told analysts that the magnitude of suppliers costs due to Trump administration tariff policy would lead to higher prices for consumers.

News about the actions of UnitedHealth Group

The Wall Street Journal posted a late story on Wednesday about the opening of an investigation by the Department of Justice (DOJ) on the Medicare Advantage business by Unitedhealth. Medicare Advantage is the privately administered medical care program for the US elders who are financed by the Medicare platform of the US government of United States has the largest Medicare Advantage program in the country, with more than 8.2 million registered and manages approximately 30% of all medical plans Advantage.

The details of the investigation were scarce, and the DOJ has kept silent about his investigation so far, but The news follows a previous Journal report in February that stated that UnitedHealth was adding “questionable diagnoses” to the medical records of the members to claim higher payments of Medicare.

UnitedHealth denied the accusation at that time.

It is a terrible moment for the company, which arrives in the same week when he replaced his CEO with the president of the Board and former Ceo Stephen Hemsley. UnitedHealth Group is also being sued by shareholders for allegedly not revealing the adverse effects on business after the fall of the former CEO of UnitedHaalthcare, Brian Thompsonin December 2024.

In addition, the Medical Care Company suspended its projection by 2025 earlier this week, since medical care costs have continued to increase, particularly in their Medicare Advantage plans. In the first quarter, the medical care ratio increased to 84.8% compared to 84.3% of the previous year.

Unitedhealth Group actions forecast

UNH shares have now fallen ~ 56% since their historical maximum of November 11, 2024. After losing the Fibonacci extension of 161.8% in 313.19 $, the following support point is found in 197.78 $ (261.8% fibo), although that level is difficult to imagine.

Wall Street analysts drastically cut their price objectives earlier this week after the suspension of the guide, but most kept them between $ 350 and $ 400.

This is an unexplored territory for most United Inverters, who have had UNH as one of their most reliable investments in dividend growth. The company has increased its dividend for 15 consecutive years, more than 14% on average during the last five years, but is quoting in a minimum of five years. The last time he quoted was $ 278 in April 2020 during panic for COVID.

UNH DAILY ACTION GRAPH