Buffett's Berkshire Stake in UnitedHealth Faces Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6h ago
0mins
Source: Benzinga
- Stake Acquisition: Buffett's Berkshire Hathaway disclosed a purchase of 5,039,564 shares of UnitedHealth Group (UNH) in Q2, marking the conglomerate's first ownership of the stock in several years, indicating Buffett's recognition of its value.
- Price Fluctuations: UnitedHealth shares traded between a low of $248.88 and a high of $606.36 in Q2, suggesting Berkshire likely bought closer to the lower end; however, with shares currently at $283.80, the stake's value has dropped to $1.43 billion, down approximately $141.96 million since the end of Q2.
- Market Reaction: Following the quarterly earnings report, UnitedHealth shares fell due to a proposal from the Trump administration to keep Medicare insurance rates unchanged, despite an EPS of $2.11 beating estimates; the 2026 revenue outlook fell short of consensus, undermining investor confidence.
- Management Transition: Buffett stepped down as CEO of Berkshire Hathaway at the end of 2025, with new CEO Greg Abel planning to divest from the struggling Kraft Heinz investment, prompting the market to closely monitor his upcoming investment decisions.
Analyst Views on UNH
Wall Street analysts forecast UNH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNH is 397.82 USD with a low forecast of 330.00 USD and a high forecast of 444.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 351.640
Low
330.00
Averages
397.82
High
444.00
Current: 351.640
Low
330.00
Averages
397.82
High
444.00
About UNH
UnitedHealth Group Incorporated is a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State. Optum Health offers comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being. Optum Health delivers primary, specialty and surgical care; helps patients and providers navigate and address complex, chronic and behavioral health needs. Optum Insight connects the healthcare system with services, analytics and platforms that make clinical, administrative and financial processes simpler and more efficient for all participants in the healthcare system. Optum Rx offers a range of pharmacy care services through retail pharmacies, through home delivery, specialty and community health pharmacies and the provision of in-home and community-based infusion services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
