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UnitedHealth Under the Microscope After Berkshire Pulls the Plug
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Key Takeaways
UnitedHealth slid after Berkshire Hathaway disclosed it held no shares as of March 31, 2026.
The exit surprised some traders, though some saw it as profit-taking amid a broader portfolio reshuffle.
Medical costs remain elevated, and regulatory questions linger, keeping key headwinds in focus for UNH.
UnitedHealth Group Incorporated (UNH - Free Report) is back in the spotlight after Berkshire Hathaway disclosed that it has sold its stake in the health insurer. The update came from Berkshire’s latest 13F filing, highlighted by Reuters, which showed the firm held no UNH shares as of March 31, 2026. UNH declined 2% from Thursday’s closing.
Berkshire is not a typical institutional holder. When it builds a position, investors often view it as a vote of confidence. Last August, Berkshire revealed that it had accumulated more than 5 million UNH shares as of June 30, 2025, a stake valued at roughly $1.57 billion. Buffett’s move was widely seen as a bet that the company’s setbacks at the time — including fallout from a major cyberattack, higher medical costs, softer earnings momentum and ongoing regulatory scrutiny — would ease over time. The disclosure helped lift sentiment and added fuel to UNH’s rebound.
The first quarter’s filing delivered the opposite reaction. The sudden exit caught traders off guard and added selling pressure to the stock, but many viewed the move as simple profit-taking or risk reduction rather than a sign that something was fundamentally wrong with the business. The UNH exit also fits into a wider portfolio shake-up under Berkshire’s new CEO, Greg Abel. The company trimmed or eliminated positions such as Amazon, Visa and Mastercard, while adding exposure to names like Delta Air Lines, Macy’s and Alphabet, pointing to a broader shift in positioning.
Meanwhile, several of the concerns Berkshire originally appeared willing to look past have not fully disappeared. Medical costs remain elevated (but better managed), Medicare Advantage margins are still tight, and regulatory questions continue to linger. UnitedHealth may be stabilizing, but the key headwinds are still in play.
Peers like Centene Corporation (CNC - Free Report) and Elevance Health, Inc. (ELV - Free Report) are also dealing with rising medical costs as utilization stays elevated. Still, both appear to be navigating the pressure. Centene’s health benefits ratio improved to 87.3% in the first quarter from 87.5% a year earlier, helped by stronger rates, higher revenues, better cost controls and milder flu-related costs. Elevance, however, saw its benefit expense ratio tick up to 86.8% from 86.4%, reflecting higher medical costs, partly offset by improved Medicare performance.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have gained 18.5% in the year-to-date period compared with the industry’s growth of 17.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 20.42, up from the industry average of 17.32. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $18.25 per share, implying an 11.6% improvement from the year-ago period.
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Image: Bigstock
UnitedHealth Under the Microscope After Berkshire Pulls the Plug
Key Takeaways
UnitedHealth Group Incorporated (UNH - Free Report) is back in the spotlight after Berkshire Hathaway disclosed that it has sold its stake in the health insurer. The update came from Berkshire’s latest 13F filing, highlighted by Reuters, which showed the firm held no UNH shares as of March 31, 2026. UNH declined 2% from Thursday’s closing.
Berkshire is not a typical institutional holder. When it builds a position, investors often view it as a vote of confidence. Last August, Berkshire revealed that it had accumulated more than 5 million UNH shares as of June 30, 2025, a stake valued at roughly $1.57 billion. Buffett’s move was widely seen as a bet that the company’s setbacks at the time — including fallout from a major cyberattack, higher medical costs, softer earnings momentum and ongoing regulatory scrutiny — would ease over time. The disclosure helped lift sentiment and added fuel to UNH’s rebound.
The first quarter’s filing delivered the opposite reaction. The sudden exit caught traders off guard and added selling pressure to the stock, but many viewed the move as simple profit-taking or risk reduction rather than a sign that something was fundamentally wrong with the business. The UNH exit also fits into a wider portfolio shake-up under Berkshire’s new CEO, Greg Abel. The company trimmed or eliminated positions such as Amazon, Visa and Mastercard, while adding exposure to names like Delta Air Lines, Macy’s and Alphabet, pointing to a broader shift in positioning.
Meanwhile, several of the concerns Berkshire originally appeared willing to look past have not fully disappeared. Medical costs remain elevated (but better managed), Medicare Advantage margins are still tight, and regulatory questions continue to linger. UnitedHealth may be stabilizing, but the key headwinds are still in play.
Peers like Centene Corporation (CNC - Free Report) and Elevance Health, Inc. (ELV - Free Report) are also dealing with rising medical costs as utilization stays elevated. Still, both appear to be navigating the pressure. Centene’s health benefits ratio improved to 87.3% in the first quarter from 87.5% a year earlier, helped by stronger rates, higher revenues, better cost controls and milder flu-related costs. Elevance, however, saw its benefit expense ratio tick up to 86.8% from 86.4%, reflecting higher medical costs, partly offset by improved Medicare performance.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have gained 18.5% in the year-to-date period compared with the industry’s growth of 17.5%.
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 20.42, up from the industry average of 17.32. UNH carries a Value Score of B.
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $18.25 per share, implying an 11.6% improvement from the year-ago period.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.