UnitedHealth jumps after Berkshire Hathaway buys new stake
Aug 15 (Reuters) - Shares of UnitedHealth Group UNH.N surged more than 12% in premarket trading on Friday after Warren Buffett's Berkshire Hathaway BRKa.N revealed a new investment in the health insurer.
Berkshire owned 5.04 million UnitedHealth shares worth about $1.57 billion as of June 30, it said in a U.S. Securities and Exchange Commission filing.
The investment comes as the company's shares have been battered by rising health care costs, a U.S. Department of Justice probe into its billing practices, a cyberattack and the murder of former top executive Brian Thompson in December.
"While UnitedHealth still faces elevated uncertainty, it is good to see that this renowned investment firm also believes the market is discounting assumptions that are too pessimistic for the long term, which is similar to our view," said Morningstar analyst Julie Utterback.
As of last close, the stock remains the worst performer on the blue-chip Dow Jones Industrial Average .DJI so far this year, sliding nearly 46%.
Last month, the company projected full-year adjusted earnings per share of at least $16, well short of analysts' already lowered estimates, while second-quarter profit also missed Wall Street expectations.
In May, CEO Andrew Witty abruptly stepped down amid rising operational and financial pressures, with Stephen Hemsley , who had run the company from 2006 to 2017, taking over.
UnitedHealth's shares currently trade at about 15.8 times the company's forward earnings estimates, below their five-year average of 19.
Shares were last up 12.6% at $305.8 in premarket trading. Rivals Centene CNC.N and Molina Healthcare MOH.N also climbed more than 4% each.
Berkshire also disclosed new stakes in steel maker Nucor NUE.N, security products provider Allegion ALLE.N and outdoor advertiser Lamar Advertising LAMR.O. Nucor jumped 5.8% to $152.8.
UnitedHealth, other health insures hit hard in the last year
Related Articles
[Reuters Analysis] Powell's last Jackson Hole speech could pack a punch: McGeever
By Jamie McGeever ORLANDO, Florida, Aug 20 (Reuters) - Financial markets are taking in a collective breath ahead of Jerome Powell's eighth and final keynote Jackson Hole speech as Federal Reserve Chair. If the moves following his last seven are any guide, investors buckle up for a bumpy ride....
Powell's Jackson Hole Speech: For U.S. Stocks, Hawk or Dove Signal Could Be a Lose-Lose?
TradingKey - As U.S. inflation and labor market data show signs of rebalancing, Treasury traders and Wall Street banks have largely priced in a rate cut at the September FOMC meeting — the first of 2025. Yet both a more dovish-than-expected tone and a potential surprise hawkish signal from Fed Chair
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
Ethereum Price Prediction: Will ETH Extend the Rally? What’s the Future Trend?
Ethereum's impressive 2025 rally has been largely fueled by inflows from spot ETFs and a surge in institutional holdings, signaling growing confidence in its role as a core asset in the crypto market. However, to officially confirm the start of a new bull cycle, ETH must break above the critical $4,
The Overlooked Japanese Bonds: Why Japan Could Be a “Ticking Time Bomb” for Global Financial Stability?
TradingKey - After three decades of economic stagnation, Japan’s financial environment is undergoing a significant transformation. The Bank of Japan (BoJ) has initiated a tightening cycle through interest rate hikes and reduced bond purchases—triggering volatility in both the yen exchange rate and..
