UnitedHealth Group Is In Chaos

(7min)

Summary

  • UnitedHealth Group Incorporated faces a dramatic stock drop following a rare earnings miss, where Q1 revenues fell short by $2 billion and EPS missing by $0.09.
  • CEO Andrew Witty's sudden resignation and the company's withdrawal of all guidance due to higher-than-expected costs have further shaken investor confidence.
  • The company is grappling with increased insurance usage and costs, particularly in Medicare Advantage, impacting its ability to provide accurate future earnings guidance.
  • Despite the turmoil, long term UNH investors may find an attractive entry point at $335, with potential for recovery as the company adjusts pricing and bids.
  • This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing. Learn More »

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In this column we discuss UnitedHealth Group Incorporated (NYSE:UNH). We will not go into much detail on the drama from last year, with the murder of Brian Thompson. UNH has been in the

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of HUM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

We may enter UNH commons today as well at market open, or sell puts 1-2 months out

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