UnitedHealth stock rises as Berkshire stake disclosed

UnitedHealth shares rose after Berkshire Hathaway and other hedge funds disclosed stakes, even as earnings pressure and a DOJ investigation loom.

Berkshire Bets Lift UnitedHealth Stock Amid Turnaround Hopes

UnitedHealth Group's shares jumped about 12% on Friday after Warren Buffett's Berkshire Hathaway and other hedge funds disclosed stakes in the insurer, signaling renewed institutional interest even as the stock remains far from its highs.

The stock is down roughly 40% year to date, weighed by weak earnings, higher healthcare costs, a leadership change at the top, and a Department of Justice inquiry into business practices. Analysts offered mixed views, with Bank of America Securities lifting its price target to 325 from 290 while maintaining a Hold rating, and Bernstein trimming targets to 337 from 377 to reflect a slower earnings outlook. The consensus remains a Moderate Buy, with an average target around 314.55, implying a small upside.

The longer-term outlook depends on cost discipline, successful leadership changes, and the ability to weather regulatory scrutiny. Investors are weighing potential gains from a turnaround against near-term volatility and a challenging sector backdrop.

Buffett's stake is as much a signal as a bet. It creates a halo around UNH that can buy patience in a volatile market, even as the company faces real threats.

The real test is whether the leadership changes and the underwriting culture reset can translate into durable earnings growth. If the DOJ inquiry narrows or costs stabilize, the stock could regain some ground; if not, the bets may fade as attention shifts to cash flow and governance.

Highlights

The path ahead will test whether high level bets translate into real gains.