UNH Shares Appear Set For Potential Breakout Above $340 –  Why It’s Crucial For The Stock To Clear This Key Hurdle?

• Ever since late October, UNH stock has been in a corrective mode, sliding from its high of $381 following its third-quarter earnings.
• UNH has stayed below its 200-day moving average since mid-April.
• Insurance stocks gained on Thursday after the U.S. Senate rejected both Republican and Democratic proposals to address expiring healthcare subsidies.

UnitedHealth Group Inc. (UNH) shares have drawn heavy interest from retail investors on Friday morning as it appears set to clear a key hurdle at $340 following the U.S. Senate’s rejection of Republican and Democratic proposals to address expiring healthcare subsidies.

The $340 mark coincides with the stock’s 50-day moving average (50-DMA), currently at around $340.71 – a key hurdle which, if crossed, will be considered as a positive signal for the short term. Ever since late October, UNH stock has been in a corrective mode, sliding from its high of $381 following its third-quarter earnings. 

Though revenue rose 12% to $113.2 billion in the quarter, higher medical costs and Medicare funding cuts pressured profits. Net income dropped to $2.54 billion from $6.56 billion, and net margins slid sharply to 2.1% from 6%. The stock has stayed below its 200-day moving average since mid-April.

The Healthcare Plan Deadlock

On Thursday, insurance stocks rose after the U.S. Senate rejected proposals to address expiring healthcare subsidies. Although ACA premiums are expected to increase and tax credits are ending this year, investors had largely priced in the impact. They reportedly viewed the Republican plan as the bigger risk.

That plan would eliminate the enhanced tax credits and instead put the funds into Health Savings Accounts for those buying bronze or “catastrophic” ACA plans, providing $1,000 for individuals aged 18 to 49, and $1,500 for those aged 50 to 64.

UnitedHealth’s Financial Plans

Last month, UnitedHealth launched a three-year turnaround plan aimed at restoring profitability and what the new CFO, Wayne DeVite, described as the company’s “swagger” by 2027. The strategy includes dropping unprofitable Medicare Advantage and ACA plans, and sharpening its focus on U.S. operations.

UnitedHealth also priced its 2026 plans with a higher 10% medical-cost trend to address inflation pressures. As part of the overhaul, the company plans to sell non-core international assets, reduce debt, and resume share buybacks in late 2026. It has already agreed to sell its final South American asset, Banmedica, to Patria Investments for about $1 billion.

Despite raising its 2025 profit outlook and signaling strong momentum into 2026 and 2027, the company still faces elevated medical costs, especially in its Medicaid business.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits shifted to ‘bearish’ from ‘extremely bearish’ a day earlier. UNH was also among the top trending tickers on the platform.

One user sees $340 as a crucial level. The stock is currently near $338.

Year-to-date, the stock has declined more than 33%.

Also See: Robert Reich Sounds Alarm: Trump’s Grip On Private Sector In Spotlight As Paramount, Netflix Battle For WBD Heats Up

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on