Home / Business and Economy / Buffett's Bet Pays Off as UnitedHealth Rebounds 50%
Buffett's Bet Pays Off as UnitedHealth Rebounds 50%
27 Oct
Summary
- Warren Buffett's Berkshire Hathaway bought 5M UNH shares
- UNH stock price rebounds 50% from May low to $362.50
- New CEO Hemsley signs $60M contract, buys $25M in shares
In a significant turnaround, UnitedHealth Group Inc.'s (UNH) stock price has rebounded nearly 50% since August, when Warren Buffett's Berkshire Hathaway purchased 5 million shares. The stock, which had fallen to a low of $245 in May, is now trading at $362.50.
The rebound has been fueled by investor optimism following the return of CEO Stephen Hemsley, who previously led the company between 2006 and 2017. Hemsley, who signed a three-year contract with a potential payout of $60 million in stock, has also bought around $25 million worth of shares, demonstrating his confidence in the company's future.
Analysts are now expecting UnitedHealth to raise its full-year profit forecast, which was previously below estimates. The company is set to report its third-quarter earnings on October 28, 2025, and investors are hopeful that it will return to its long-term profit margin goals by next year. As the company addresses rising healthcare costs, analysts are also anticipating improved company-wide growth in the coming years.
