Market Flash on UnitedHealth Group (UNH)

UnitedHealth Group (TICKER: UNH) shares fell from $600 on April 11 to $275 as of May 15 erasing over $300 billion in market value as rising medical costs, regulatory pressures and a Department of Justice criminal investigation into possible Medicare fraud undermined investor confidence. The DOJ probe, reportedly examining the company’s Medicare Advantage practices, coincided with CEO Andrew Witty’s abrupt departure and the company’s withdrawal of its 2025 financial guidance. 

EquiLend Data & Analytics captured a telling early warning sign: the borrow quantity of UNH shares, an indication of short interest, was less than 240,000 shares in March and is currently 2.4 million shares – a tenfold increase that signaled heightened bearish positioning. This spike in securities lending activity preceded the share price decline, indicating that some market participants were establishing short positions prior to the fraud investigation making headlines. Short selling and financing data can offer crucial market intelligence before significant price movements.