UNH share has entered a bearish phase after a long bull run. The price is moving in a descending channel, indicating a downtrend. A bearish crossover on the chart confirms the negative sentiment. Sellers are taking profits after the share’s extended rally.
For the first quarter of 2023, the company delivered strong financial results, with revenues and net income growing by 10.7% and 11.18% year-over-year, respectively. The company also achieved a net profit margin of 4.72%, earnings per share of $9.46, and an EBITDA of $3.33 Billion for the same period.
In addition, the company had a solid balance sheet as of March 31, 2023, with cash and short-term investments of $38.17 Billion, total assets of $109.04 Billion, and total equity of $37.46 Billion, exceeding its total liabilities of $71.58 Billion. The company also had a reasonable valuation as of the same date, with a price-to-book ratio of 2.79, and a high profitability, with a return on assets of 6.77% and a return on capital of 11.45%.
UNH stock is in a downtrend right now, based on the price data. The stock is underperforming at the moment. The profit margin of the stock is 6.16%. It rose from its 52-week low of $445.68 to a high of $463.10. The average 3-month volume in UNH stock is $3.45 Million. The stock has faced increased selling pressure lately.
The UNH stock has delivered negligible returns to investors in the past year. The current market sentiment is bearish on the stock.
UnitedHealth Group Technical Analysis
The price of UnitedHealth Group Inc has slipped below the 200-day and 50-day moving averages showing the influence of sellers in the market. However, if sellers continue to drag the market lower, UNH stock can suffer more decline and go into a downtrend. Moreover, the bullish cross confirms the bearish trend.
The RSI line has been trading around the oversold area. The RSI line is around 39.49. The 14 SMA has a value of 45.73 points indicating that the UnitedHealth Group Inc. stock is in the negative zone.
Right now, MACD is giving bearish signals. The MACD line at -3.23 and signal line at -4.81 is below the zero line, suggesting that the MACD is in negative territory and is giving negative signals as of now.
Conclusion
UnitedHealth Group Inc’s share price has been falling from its peak and creating lower lows. It may continue to drop and make a new lower low soon if the bears keep dominating. UNH’s price shows a bearish outlook right now. Key reliable indicators such as EMA, RSI, and MACD are signaling a downtrend for the UnitedHealth Group Inc (UNH) stock. The current situation calls for traders and investors to be cautious and wait for a clear trend before taking any action and avoiding the FOMO trap to reduce losses.
Technical Levels:
- Support – The current support level is $421.41.
- Resistance –The current resistance level is $474.63.
Disclaimer
The analysis given in this article is for informational and educational use only. Do not use this information as financial, investment, or as trading advice. Investing and trading in stock is a risky task. Please consider your circumstances and risk profile before making any investment decisions.
Source: https://www.thecoinrepublic.com/2023/07/11/is-unitedhealth-group-inc-unh-stock-entered-in-bearish-trend/