Key Stats for UnitedHealth Stock
- 1-Day Price Change for UNH stock: 12%
- Current Share Price: $304
- 52-Week High: $631
- UNH Stock Price Target: $328
What Happened?
UnitedHealth Group (UNH) stock soared 12% on Friday, its best daily performance since March 2020, after legendary investor Warren Buffett revealed a significant stake in the troubled health insurer.
Berkshire Hathaway disclosed a position of five million shares worth approximately $1.6 billion in an SEC filing, representing the 18th-largest holding in Berkshire’s $300 billion equity portfolio.
The investment comes as a surprise given UnitedHealth’s recent challenges, including a Justice Department investigation into Medicare billing practices and the company’s dramatic revision of its 2025 earnings outlook.
Last month, UnitedHealth provided guidance well below Wall Street estimates, citing $6.5 billion more in medical costs than initially anticipated, with significant pressure across Medicare Advantage, commercial, and Medicaid segments.
Other prominent investors also disclosed stakes in UnitedHealth, including “Big Short” investor Michael Burry and Appaloosa Management’s David Tepper, suggesting value-oriented investors see opportunity in the beaten-down health insurer.
See analysts’ growth forecasts and price targets for United Health stock (It’s free!) >>>
What the Market Is Telling Us About UNH Stock
The market’s enthusiastic response to Buffett’s investment in UNH stock represents a crucial vote of confidence in UnitedHealth during one of its most challenging periods.
Deutsche Bank analyst George Hill noted that Berkshire’s move “could provide a near-term trading floor for most of the MCO space” and serve as a “rallying point for other investors that the space is safe to invest in again.”
UnitedHealth stock had fallen nearly 50% in 2025 before Buffett’s disclosure, making it attractive from a valuation perspective with a price-earnings ratio near 12x, close to its lowest level in more than a decade.
Despite the operational challenges outlined in recent earnings, including elevated medical cost trends and margin compression, Buffett’s investment suggests confidence in the company’s long-term fundamentals and reform efforts under new leadership.
The investment in UNH stock aligns with Buffett’s history of value investing in troubled but fundamentally strong companies.
While UnitedHealth faces near-term headwinds, including pricing pressures and regulatory scrutiny, Buffett’s endorsement provides validation that the company’s market-leading position in health insurance and integrated care delivery remains intact and positioned for eventual recovery.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
