UnitedHealth Group Inc. (NYSE:UNH) extended its rebound Monday, climbing another 3% in premarket trading after soaring 12% on Friday. The surge followed revelations that Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.B) has taken a sizable stake in the health insurer.
Regulatory filings show Berkshire acquired 5 million shares of UnitedHealth during the second quarter, a move widely interpreted as a show of confidence in the company despite ongoing challenges. The investment aligns with renewed interest from other heavyweight investors, including David Tepper’s Appaloosa Management and several billionaire family offices, which also boosted their holdings.
The influx of fresh capital marks a welcome shift for UnitedHealth, whose stock had fallen 46% year-over-year through last Thursday’s close amid declining financial performance and a federal probe into its business practices.
The sharp rally at the end of last week, now extended by Monday’s gains, suggests that investors may see a turning point ahead. Still, the company faces significant obstacles as it works to steady operations and resolve regulatory concerns.
The presence of high-profile backers like Buffett underscores a bet that UnitedHealth can overcome its current difficulties and ultimately return to stronger growth.
UnitedHealth Group stock price
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