UnitedHealthcare ($UNH) has been hit hard – down 48% over the past year. But here’s the twist: Warren Buffett just bought $1.6 billion worth of shares, with an average price near $310–$312. And he’s not alone—Michael Burry (of The Big Short) is in too.
So why are these legendary investors loading up while fear is at its peak? Let’s break it down.
🚨 Why UNH Dropped
Regulatory scrutiny: DOJ investigations, similar to what Google faced.
Cyberattack + leadership turmoil following the CEO’s assassination.
Earnings pressure in recent quarters.
Despite this, Buffett’s classic strategy comes into play: “Be greedy when others are fearful.”
📊 The Bullish Case
Blue-chip stability: UNH has a history of consistent growth. This is its largest dip ever.
Analyst upgrades: Barclays and others are raising price targets.
Meta déjà vu: Similar setup to Meta in 2022 before its sharp V-shaped recovery.
🔎 Technical Outlook
Daily timeframe: Breakaway gap formed after Buffett’s buy → low chance of filling.
Price consolidation: Stock is building momentum for a breakout.
Short-term target: $345 within 1–2 weeks → strong call option setup.
Long-term target: A potential 40–100% upside if earnings normalize and momentum continues.
✅ The Play
Options traders: Watch for a breakout toward $345 (short-term call play).
Long-term investors: Buying shares now could set up for a 40% gain in 12 months—and potentially 100%+ to all-time highs.
I’ll be sharing my exact call/exit alerts in the Discord.