UnitedHealth stock sells off as executive shooter remains at large
- The assassin of UnitedHealthcare CEO Brian Thompson remains on the loose.
- Police have discovered written words on the shell casings of ammunition at the scene.
- Social media shows a large segment of the public with disdain for UnitedHealth.
- UNH stock sank below $586, down more than 4%, on Thursday after gaining on Wednesday.
UnitedHealth Group (UNH) stock is trending lower on Thursday, a day after news shocked that nation when the CEO of its largest insurance unit was assassinated outside an investor event in Manhattan on Wednesday. The UNH share price rose 0.9% on Wednesday but has descended more than 4% on Thursday morning.
The Dow Jones Industrial Average (DJIA) is off 0.3% as UNH is its largest holding, while the NASDAQ and S&P 500 have barely budged.
UnitedHealth stock news
UnitedHealthcare CEO Brian Thompson was shot about 15 minutes before 7:00AM EST in front of the Hilton Midtown Hotel in Midtown Manhattan on Wednesday. New York City police believe the unidentified shooter was waiting for Thompson since multiple people passed by before the shooter took aim with a handgun at Thompson, hitting him in the back and leg.
"This was a premeditated, pre-planned, targeted attack," NYPD Commissioner Jessica Tisch told reporters.
Police also identified several articles that might have belonged to the shooter, saying they are being tested for DNA.
The shooter ran away following the killing, riding a bicycle north on 6th Avenue and then fleeing through Central Park. Police have released close circuit footage of the individual, who wore a winter-weather mask that partially concealed his face. Footage of the shooter standing in a Starbucks (SBUX) before the shooting took place might allow the police to indentify the shooter using facial recognition technology. The perpetrator is believed to be a white male.
The investigation took on a political ring once news outlets began reporting on Thursday that several of the bullet casings found on the ground near the ambush were emblazoned with words. The words “delay”, “deny”, “depose” and “defend” were reported by The New York Times and The Washington Post.
It would appear that the words signify strategies that health insurers use to “delay” or “deny” health coverage, but it is hard to be sure. Some pundits believe that the shooter might have been enraged over the health coverage denial of a loved one.
The tragedy might also be hurting the UnitedHealth brand. Social media has been saturated with posters making light of the serious incident. Private health insurers in the US are generally unpopular with the public as healthcare is the leading cause of personal bankruptcy.
Post on X.com with more than 40K likes from Wednesday, December 4
UnitedHealth Group stock chart
UNH stock has halted near the 50-day Simple Moving Average (SMA) circa $586. Bulls hope it stops there, but the Relative Strength Index (RSI) has dropped below 50, which shows a lack of momentum from buyers.
Recent price movement in October and early November found support in the $550s and the 200-day SMA sits at $537. Excitement over the upcoming start to the Trump administration, however, should keep the market content. Wall Street expects the incoming administration to be good for business and more generous in terms of Medicaid and Medicare payments to insurers.
UNH daily stock chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
