UnitedHealth shares fell 3% on Monday after Berkshire Hathaway disclosed it had sold its stake in the healthcare conglomerate as a part of a portfolio reshuffling in the first quarter under CEO Greg Abel.
In August last year, Berkshire Hathaway disclosed it bought 5 million shares of UnitedHealth, which had then lifted the stock as investors bet on a turnaround under CEO Stephen Hemsley. On Friday, Berkshire said it has exited its position in the health insurance behemoth.
"Berkshire Hathaway's stock moves tend to have an impact on stocks whether it was Warren Buffett behind the change or not," said Bill Stone, chief investment officer at the Glenview Trust Company, which holds Berkshire shares.
"(UnitedHealth) has had a nice move this year, so perhaps this added to the temptation of profit taking since Berkshire exited."
UnitedHealth stock is up about 20% so far this year, after falling more than 30% last year, which had made it the worst performer on the Dow Jones Industrial Average index in 2025.
Hemsley, who returned as CEO last year, has worked to restore investor confidence amid rising healthcare costs, criticism of insurance practices, a senior executive's murder in late 2024, and a federal probe into its government-backed plans.
"The news that Berkshire has exited its stake in UNH may take some air out of the stock near-term but does not diminish the operational turnaround that's underway and seems to be headed in the right direction," said James Harlow, senior vice president at Novare Capital Management, which owns 54,855 UnitedHealth shares.
UnitedHealth in April raised its annual profit forecast and surpassed Wall Street expectations for first-quarter earnings and revenue. Other major insurers have also reported strong quarterly results and said they have a better grip on managing higher costs.
Morningstar analyst Julie Utterback said Berkshire's move likely relates to roster changes more than anything else, adding the managed care story has been on an upswing during the first quarter earnings season.
