TLDR
- UnitedHealth stock fell more than 5% in premarket trading Monday after Berkshire Hathaway disclosed it fully exited its ~5 million-share stake in the company
- Berkshire sold the position as part of a broader portfolio overhaul under new CEO Greg Abel, who took over from Warren Buffett on January 1
- UNH is also under pressure from a government moratorium on new Medicare enrollments for home healthcare providers
- The company plans to cut 1.3 million Medicare Advantage members to protect profit margins from rising medical costs
- Despite the selling, UNH beat Q1 earnings estimates and raised its full-year profit outlook in its latest report
UnitedHealth (UNH) stock dropped more than 5% in premarket trading on Monday, hitting around $380.35, after Berkshire Hathaway revealed it had completely sold its stake in the health insurer.
UnitedHealth Group Incorporated, UNH
Berkshire’s latest 13F filing, covering holdings as of March 31, showed the conglomerate offloaded its entire ~5 million-share position in UNH. That’s a notable exit, especially since Berkshire only first bought the stock in Q2 2025 — less than a year ago.
The move is part of a wider portfolio reshuffle under Greg Abel, who officially became Berkshire’s CEO on January 1 after succeeding Warren Buffett.
When Berkshire walks away from a stock that quickly, the market notices. Investors took it as a signal, and the selling pressure followed.
Berkshire didn’t just exit UNH. The conglomerate also fully closed positions in Amazon, Domino’s, Pool Corp, Mastercard, and Visa during the first quarter. Most of those names were mildly lower in early trading Monday.
On the buy side, Berkshire added Delta Air Lines and Macy’s to its portfolio, while increasing its stake in Alphabet and the New York Times.
Regulatory and Operational Pressure Adding to the Pain
The stock isn’t only dealing with the Berkshire fallout. UNH is also facing a government moratorium on new Medicare enrollments for home healthcare providers, which adds another layer of regulatory uncertainty.
On top of that, the company has said it plans to cut 1.3 million Medicare Advantage members. The move is a deliberate strategy to protect profit margins as medical costs continue to rise.
That combination — a high-profile investor exit, regulatory headwinds, and a shrinking member base — has pushed traders to reassess their near-term outlook on the stock.
DOJ Scrutiny Still in the Background
UNH has been navigating DOJ scrutiny over its billing practices for some time now. That overhang hasn’t gone away.
The stock is down roughly 20% year-to-date heading into this week, making Monday’s move another chapter in what has been a rough stretch for the managed-care giant.
That said, not everything is negative. UnitedHealth’s Q1 earnings report showed signs of stabilization.
The company beat Q1 earnings estimates and raised its full-year profit outlook, which had provided some relief before Monday’s news hit.
The technical sentiment signal on UNH is currently listed as a Buy, with an average daily trading volume of around 8.49 million. Current market cap sits at approximately $357.7 billion.
For now, the stock is absorbing the weight of Berkshire’s exit and the broader concerns around Medicare costs and enrollment changes.
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