UnitedHealth Stock Jumps after Investment from Warren Buffett
Warren Buffett bought millions of shares of UnitedHealth while the company's stock is at its lowest point in years.
Quick overview
- UnitedHealth (UNH) stock has surged 14% following a significant investment from Berkshire Hathaway.
- The stock price fell to $237 in early August due to a federal investigation and lowered earnings guidance, but has since rebounded.
- Warren Buffett's confidence in UNH, demonstrated by his purchase of five million shares, may encourage other investors to consider the stock.
- Despite recent challenges, UNH's historical performance suggests potential for recovery and growth in the coming months.
After steep decline in early August, UnitedHealth (UNH) stock is now quickly climbing thanks to Warren Buffet’s company Berkshire Hathaway buying the dip.
UNH stock rose 14% on Friday Warren Buffett invested heavily in the struggling insurance company. At the beginning of August, UnitedHealth Group Inc. fell to its lowest price since the start of 2025, but now it is up more than 14%.
The company is being investigated for how it bills Medicare patients, and they adjusted their expected earnings down as a result. This caused the stock to dip further than it had been, taking UNH’s price per share from July’s already low $326 down to an alarming $237. The stock value had fallen about 50% for the year so far at that point, but now it is climbing.
If famed investors Buffett believes the stock will recover, then other investors may be wise to take action as well. UnitedHealth has become the scapegoat for all sorts of national healthcare issues, and the company is reeling from a lack of investor confidence. They blame the low stock prices and poor guidance for the coming quarter on rising medical care costs.
However, the federal investigation inspecting UnitedHealth’s treatment of Medicare patients may be the most damning factor at the moment. Investors still need to be aware that this issue could further hurt the company’s stock in 2025, but it seems like Buffett is confident the company will turn things around.
Why Buffett Might be Buying the Dip
Warren Buffett bought up five million shares of UNH over the previous quarter, and this finding was revealed on Thursday, prompting the company’s stock to shoot very high very quickly. It is worth noting that UNH’s performance has only been poor since late April. Before then, the stock value was climbing.
Investors should also look at the company’s long-term stock performance. As low as the value fell over the last few months, that is still much higher than UNH’s stock price has been throughout much of its lifespan. The company’s stock value never hit $200 until 2017, and since then, it has never fallen below that mark.
In 2020, the stock climbed to $300, and then up to $400 the following year. That is an incredible improvement, and that history marks UNH as one of the best stock investments for the last decade. In early 2025, UNH’s stock was valued above $500 per share, so even though the price is far below that now, there is potential for the company to recover back to that point.
The price of UNH stock over the last few months is the lowest we have seen it in years, and if the company can recover, there is potential for the stock to grow by around 60% in the near future. Currently priced at $308 per share and rising, UNH stock could be one of the year’s best comeback stories if major investors continue to believe in it.
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