UnitedHealth Group (UNH) has recently drawn strong interest from top investors and hedge fund managers, including Warren Buffett and Michael Burry. Each made sizable new investments in the health insurer during Q2, signaling confidence in its potential for a rebound. The stock jumped nearly 11% in after-hours trading yesterday.
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Berkshire and Burry Are Betting on UnitedHealth’s Rebound
Warren Buffett’s Berkshire Hathaway (BRK.B) disclosed a $1.57 billion investment in UnitedHealth, acquiring roughly 5 million shares, as revealed in its Q2 2025 13F filing. This marks Berkshire’s first stake in the company since selling out in 2010, when Buffett exited amid a broader pullback from health insurers.
Meanwhile, Burry’s Scion Asset Management revealed a combination of call options tied to 350,000 UnitedHealth shares and a direct holding of about 20,000 shares, valued at $6 million.
Burry’s position is notable because he is betting on a rebound in a stock that has fallen nearly 46% so far this year. The move follows better-than-expected Medicare Advantage rates for 2026, and UnitedHealth’s competitive positioning remains solid despite recent turbulence.
Analysts See Growth Potential Despite Challenges
These investments come despite a challenging year for UnitedHealth, marked by surging medical costs, a Justice Department probe into Medicare billing, and a cyberattack.
Q2 earnings also disappointed, with profits falling sharply due to higher-than-expected medical costs across both Medicare Advantage and commercial plans. The company now anticipates an additional $6.5 billion in medical costs this year, with effects likely extending into 2026.
On the positive side, UnitedHealth maintains that its long-term growth plan is on track, focusing on AI tools and improving patient care. Analysts see roughly 15% upside from current levels, supported by the company’s steps to address operational challenges and an updated financial outlook.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, four Holds, and two Sells assigned in the last three months. At $312.65, the average UnitedHealth stock price target implies a 15.03% upside potential.
