Berkshire Buys $1.57 Billion Stake in UnitedHealth as Shares Surge 12% Pre-Market

UnitedHealth Group’s (UNH) shares surged more than 12% in premarket trading on August 15, 2025, following a new $1.57 billion stake by Berkshire Hathaway, as disclosed in a Securities and Exchange Commission filing. The investment involved 5.04 million shares, representing a significant vote of confidence in the company amid a challenging 2025 that saw its stock fall nearly 46% year-to-date, making it the worst performer on the Dow Jones Industrial Average [1]. The move triggered a notable market reaction, with UnitedHealth’s stock jumping from $271.49 to as high as $305.80 before the market open [2].

The investment came during a period of heightened regulatory scrutiny, a major cybersecurity breach affecting 192.7 million individuals, and leadership changes, including the resignation of CEO Andrew Witt and the return of former CEO Stephen Hemsley [3]. Despite these challenges, the company’s strong financial fundamentals—such as a trailing P/E ratio of 11.75 and a 5.04% profit margin—suggest it remains fundamentally sound. Analysts noted that the company's shares were trading at 15.8 times forward earnings estimates, below its five-year average of 19, which may indicate potential undervaluation [4].

The market reaction was amplified by broader optimism around potential Federal Reserve rate cuts, with the S&P 500 and Dow futures also rising on the same day. UnitedHealth’s shares were among the key contributors to the upward momentum. This is not the first time Berkshire has shown interest in the stock; the company had already increased its stake earlier in Q2 2025, a move that analysts had linked to growing institutional confidence in UnitedHealth’s ability to navigate macroeconomic pressures [5].

Berkshire’s decision to build a $1.6 billion position in UnitedHealth highlights the insurer’s resilience and long-term growth potential in a sector that remains central to the U.S. economy. While some analysts had warned of overreactions to negative news in the past, the recent rally suggests the market is recalibrating its expectations. UnitedHealth’s share price had already begun to recover since the start of the second quarter, fueled in part by investment activity from high-profile investors [6].

The stock’s recent momentum has made it one of the most-watched names ahead of the market open, with traders closely monitoring whether the premarket gains will hold through regular trading hours. The market’s reaction underscores the influence that high-profile institutional investors like Berkshire Hathaway can have on equity prices. UnitedHealth, as a dominant player in the U.S. healthcare sector, continues to attract attention from investors seeking stable, long-term growth in an otherwise volatile market [7].

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[1] UnitedHealth jumps after Berkshire Hathaway buys new stake - Yahoo

https://finance.yahoo.com/news/unitedhealth-jumps-berkshire-hathaway-buys-081900413.html

[2] UnitedHealth Group (UNH) Soars 12.68% on Buffett's ... - AInvest

https://www.ainvest.com/news/unitedhealth-group-unh-soars-12-6-8-buffett-investment-merger-approval-2508/

[3] UnitedHealth: Did Berkshire Hathaway Buy the Dip? - Tokenist

https://coinmarketcap.com/community/articles/689f16a880691323f3902265/

[4] UnitedHealth’s Dividend Yield Has Never Been This High. ... - Nasdaq

https://www.nasdaq.com/articles/unitedhealths-dividend-yield-has-never-been-high-should-you-buy-stock

[5] Is UnitedHealth Group a Buy After Warren Buffett Enters the ... - Nasdaq

https://www.nasdaq.com/articles/unitedhealth-group-buy-after-warren-buffett-enters-picture

[6] UnitedHealth Stock (UNH) Is Trending Higher as Warren ... - TipRanks

https://www.tipranks.com/news/unitedhealth-stock-unh-is-trending-higher-as-warren-buffett-reveals-new-stake-will-the-rally-continue

[7] Stock Market Today: Dow Futures Rise, Boosted by UnitedHealth - The

https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-08-15-2025/card/stocks-to-watch-friday-unitedhealth-intel-apple-2bHElw5KTz1pzHNuVGcv?gaa_at=eafs&gaa_n=ASWzDAgrT76hoGszC6nWcmaAAZE47gSm6nqgR09M88fMCq7gK6Dd6p01Zp_N