Warren Buffett and Michael Burry's Latest Moves on UnitedHealth Stock: Is the Rally Sustainable?

UnitedHealth Group (UNH) stock surged 11% after-hours and is up 12% pre-market after Warren Buffett's Berkshire Hathaway and Michael Burry's Scion Asset Management disclosed new stakes. Analysts remain bullish, citing roughly 15% upside from current levels. Mizuho's Ann Hynes and Bernstein's Lance Wilkes maintain Buy ratings, while Robert W. Baird's Michael Ha has a Sell rating. The stock has a Moderate Buy consensus rating with a $312.65 price target, implying a 15.16% upside potential.

UnitedHealth Group (UNH) stock surged 11% after-hours and is up 12% pre-market after Warren Buffett's Berkshire Hathaway and Michael Burry's Scion Asset Management disclosed new stakes. The significant investment from the legendary investor and the renowned hedge fund manager has bolstered investor confidence in the stock.

Berkshire Hathaway, led by Buffett, bought more than 5 million shares in UnitedHealth last quarter for a stake worth about $1.6 billion [1]. This purchase, disclosed in the company's regulatory filing, marks a notable move by the Omaha-based conglomerate. The investment has propelled UnitedHealth shares to the 18th biggest position in the Berkshire portfolio, behind Amazon and Constellation Brands [1].

Michael Burry, the hedge fund manager known for his role in predicting the subprime mortgage crisis, also piled into UnitedHealth shares and call options. Burry's Scion Asset Management owned call contracts against 350,000 shares of UnitedHealth at the end of June [4]. The notional value of the shares involved was more than $109 million at the end of the second quarter [4].

Analysts remain bullish on UnitedHealth, citing roughly 15% upside from current levels. Mizuho's Ann Hynes and Bernstein's Lance Wilkes maintain Buy ratings, while Robert W. Baird's Michael Ha has a Sell rating. The stock has a Moderate Buy consensus rating with a $312.65 price target, implying a 15.16% upside potential [2].

The investment by Buffett and Burry comes at a time when UnitedHealth has been facing operational headwinds, including a Justice Department investigation into its Medicare billing practices and a steep selloff in 2025. However, the company has maintained its quarterly dividend of $2.21 per share and yields approximately 3.25%, demonstrating its commitment to shareholder returns and financial stability [2].

Management anticipates a return to growth in 2026 as premium pricing adjustments take effect to offset higher medical costs, particularly in Medicare Advantage plans [2]. Recent trading sessions have shown signs of positive momentum for UNH, with shares rising approximately 11% over the past 5 days as part of a broader rotation into beaten-down healthcare stocks [2].

The investments by Buffett and Burry have provided a vote of confidence in UnitedHealth, potentially signaling a turning point for the stock. Despite the challenges faced by the company, the significant stakes taken by these prominent investors suggest a positive outlook for the future.

References:
[1] https://www.cnbc.com/2025/08/14/warren-buffetts-berkshire-hathaway-unh.html
[2] https://www.newsbreak.com/barchart-338247362/4175582614759-unitedhealth-stock-soars-as-warren-buffett-s-berkshire-hathaway-discloses-1-57b-stake
[3] https://www.businessinsider.com/big-short-michael-burry-stock-portfolio-alibaba-meta-unitedhealth-buffett-2025-8
[4] https://www.cnbc.com/2025/08/14/michael-burry-joins-buffetts-berkshire-in-scooping-up-unitedhealth-shares.html