Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRK.A) has added a little more than five million shares of UnitedHealth Group Inc (NYSE:UNH, ETR:UNH), sending shares of the health insurer nearly 13% higher on Friday.
According to SEC filings, Buffett is joining other major investors including David Tepper and Michael Burry in boosting stakes in the beleaguered company.
Buffett’s stake comes after UnitedHealth reported second-quarter earnings that fell short of Wall Street expectations and reinstating a full-year forecast below consensus.
Adjusted earnings of $4.08 per share for the quarter ended June 30 were down 14% from a year earlier and below analysts’ estimate of $4.45. Earnings from operations fell 34% to $5.2 billion, while net margin narrowed to 3.1%.
Revenue grew 13% year-over-year to $111.62 billion, slightly exceeding forecasts, driven by growth across both Optum and UnitedHealthcare.
The company reinstated its 2025 outlook following a cyberattack on its Change Healthcare unit earlier this year. It now projects revenue between $445.5 billion and $448 billion, below the average analyst estimate of $449.1 billion, and expects adjusted earnings per share of at least $16, short of the $20.90 analysts had anticipated.
UnitedHealth is also under scrutiny by the US Department of Justice, with prosecutors and the FBI questioning former employees about Medicare Advantage billing practices.
In May, CEO Andrew Witty stepped down amid operational and financial pressures, with former CEO Stephen Hemsley returning to lead the company.