Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In UnitedHealth (UNH) To Contact Him Directly To Discuss Their Options If you are a long-term stockholder in UnitedHealth between March 14, 2022, and February 27, 2024 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Marion Passmore directly at (212) 355-4648. NEW YORK, Oct. 08, 2025 (GLOBE NEWSWIRE) -- What’s Happening: Bragar Eagel & Squire, P.C., a natio ...

UnitedHealth (UNH) shares are inching higher on Wednesday after senior Wells Fargo analyst Stephen Baxter issued a positive note in favor of the world’s largest health insurance company. Baxter maintained his “Overweight” rating on UNH this morning and raised his price target to $400, indicating potential upside of another 8% from current levels. More News from Barchart His bullish call is particularly significant given UnitedHealth stock has already soared more than 50% since early August. www.barchar ...

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%. It was a challenging month for the strategy, as the marke ...

Key Takeaways UNH's diversified services provide stability, protecting revenues from market volatility.UNH's 3.3% net margin outperforms Molina's 2.6%, showing superior profitability and resilience.Scale, cash conversion and commercial footprint position UNH for a stronger comeback.The U.S. healthcare sector is navigating a turbulent landscape, shaped by rising medical costs, regulatory scrutiny and evolving patient behavior. Health insurers are under pressure as increasing utilization and reimbursement cha ...

PGIM, an investment management company, released its “PGIM Jennison Health Sciences Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities in the second quarter of 2025 experienced significant volatility, as the steep sell-off that initiated at the beginning of the quarter ultimately led to a strong recovery. The S&P 1500 Health Care Index declined 6.9% in the second quarter, underperforming the S&P 500’s 10.9% return. Health care providers & services, life science ...

Group 1 - Hedge fund manager Michael Burry has made a significant investment in UnitedHealth Group, which has seen its stock price drop nearly 50% over the past year, making it his largest position in the portfolio [3][5] - Burry purchased 20,000 shares and call options on 350,000 more, indicating a strong bullish stance on the company [5][6] - UnitedHealth Group is the largest health insurer in the U.S., operating both UnitedHealthcare and Optum, and has a strong market position despite recent challenges [7][11] Group 2 - The company has faced difficulties this year, including a U.S. Department of Justice investigation into its Medicare business and rising healthcare costs, which have impacted earnings [9][12] - In the second quarter, UnitedHealth reported adjusted earnings per share of $4.08, missing analysts' expectations of $4.48, and anticipates continued pressure on earnings [9][12] - UnitedHealth is taking steps to address its challenges, such as exiting unmanageable plans, raising premiums, and utilizing artificial intelligence to improve efficiency, with expectations of reducing costs by $1 billion for Optum next year [12][16] Group 3 - Currently, UnitedHealth is trading at 13 times trailing-12-month earnings, near its lowest valuation in about a decade, suggesting it may be undervalued [15][17] - Despite recent earnings reports not being favorable, the company's leadership has identified issues and outlined plans for recovery, predicting a return to earnings growth next year [16][17]

Core Insights - UnitedHealth Group Incorporated (UNH) and Elevance Health, Inc. (ELV) are facing significant challenges due to rising medical costs, regulatory pressures, and declining investor confidence, leading to substantial stock declines in 2025 [1][22] - UNH's stock has decreased by 40.7% year-to-date, while ELV has seen a 16% decline, against a broader industry slump of 31.6% [2][22] Group 1: Company Comparisons - UnitedHealth has a market capitalization of $275.5 billion, significantly larger than Elevance's $70.3 billion, and a stronger debt-to-EBITDA ratio of 2.03 compared to Elevance's 2.47 [5][22] - UNH's operational model includes vertical integration through UnitedHealthcare and Optum, allowing for better cost control and negotiation power [6][22] - Despite recent pressures, UNH has maintained robust cash flow, enabling continued investment in growth, although it has lowered its outlook after missing estimates [7][22] Group 2: Financial Performance - Elevance achieved a 15.5% growth in premiums in the first half of 2025, surpassing UNH's 12.6% growth [12][22] - Elevance's benefit expense ratio increased to 88.9% in Q2 2025, indicating a significant portion of premium revenue is directed towards claims rather than profitability, with expectations to reach 90% for the full year [13][22] - UNH's medical care ratio rose to 89.4% in Q2 2025, suggesting stronger profitability compared to Elevance [14][22] Group 3: Shareholder Returns and Valuation - Elevance returned over $2 billion to shareholders in the first half of 2025, while UNH returned $9.5 billion, with UNH's dividend yield at 2.95% compared to Elevance's 2.21% [15][22] - Investors are willing to pay a premium for UNH, reflected in its forward P/E ratio of 17.23X versus Elevance's 9.72X [21][22] Group 4: Future Outlook - Both companies are facing unfavorable earnings estimates for 2025 due to rising costs, with UNH's EPS expected to decline by 40.1% year-over-year, while Elevance's is projected to decline by 8.8% [17][20][22] - The acquisition of Amedisys by UNH is expected to enhance its integrated care model and reduce medical costs by minimizing hospitalizations [9][22] - Elevance's Carelon platform is driving growth through digital and AI-enabled solutions, although it still lags behind UNH in profitability and capital efficiency [11][16][22]

Group 1: Berkshire Hathaway's 13F Filing - Berkshire Hathaway's quarterly 13F filing revealed a significant new purchase of UnitedHealth Group, with 5,039,564 shares acquired, valued at approximately $1.6 billion at the end of June [12] - The 13F filing is a required disclosure for institutional investors with over $100 million in assets, providing insights into their stock transactions [2] - Warren Buffett's investment strategy often involves buying stocks under "confidential treatment," allowing him to accumulate shares without immediate market impact [6][7] Group 2: UnitedHealth Group Overview - UnitedHealth Group operates primarily in health insurance, with a substantial portion of its business dedicated to this sector [15] - The company also has a rapidly growing healthcare services segment, Optum, which enhances its profitability through various healthcare services [17] - UnitedHealth's stock experienced a significant decline of over 54% since mid-April, attributed to unexpected higher costs in its Medicare Advantage segment [18][19] Group 3: Investment Rationale - The current forward price-to-earnings (P/E) ratio of UnitedHealth Group is 14, representing a 26% discount compared to its average over the past five years, indicating potential value [21] - The company has a strong capital-return program, including a growing dividend and share buybacks, making it attractive for value-oriented investors like Buffett [21] - Despite the recent challenges, UnitedHealth has a history of navigating difficult environments, suggesting resilience and potential for recovery [20]

Core Viewpoint - Warren Buffett's Berkshire Hathaway has made a significant investment of $1.6 billion in UnitedHealth Group, acquiring 5 million shares, which has led to a 9% increase in the company's stock price after hours [1][2]. Company Overview - UnitedHealth Group's stock had previously declined 46% year-to-date before Buffett's investment, indicating a sharp reversal in market sentiment [2]. - The company has faced challenges, including federal investigations into Medicare billing practices and a disappointing Q2 earnings report that resulted in a 17% drop in stock price in one day [4][5]. Financial Performance - UnitedHealth's Q2 revenue grew by 13% to $111.6 billion, despite the ongoing challenges, highlighting the company's strong fundamentals [6]. - The company's full-year 2025 adjusted earnings expectations were lowered to at least $16.00 per share, which fell short of Wall Street's expectations [5]. Market Sentiment - Other notable investors, including Michael Burry and David Tepper, have also taken positions in UnitedHealth, reflecting a broader optimism among Wall Street analysts, with 19 out of 23 analysts rating the stock as a buy [7]. - Price targets for the stock vary widely, ranging from $198 to $700, with many recent targets clustered between $310 and $400 [7]. Competitive Advantages - UnitedHealth's vertically integrated model, combining insurance and healthcare services, provides a competitive moat that is difficult to replicate [8]. - The company benefits from demographic trends, with an aging population driving demand for Medicare Advantage plans and pharmacy benefit management services [9]. Cost Management and Future Outlook - Management is targeting $1 billion in savings by 2026 through AI and technology initiatives, indicating a proactive approach to cost management [10]. - The Optum division generated $226 billion in revenue last year, showcasing its scale and importance within the healthcare landscape [10]. Investment Consideration - Current valuations suggest that the market is pricing in a worst-case scenario for UnitedHealth, which may be overly pessimistic [11]. - Following Buffett's lead may present an opportunity for savvy investors in this undervalued healthcare stock [11].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against UnitedHealth Group Incorporated due to a class action complaint alleging breaches of fiduciary duties by the board of directors during the specified class period [1][4]. Company Overview - UnitedHealth is a leading American multinational health insurance and services company, consisting of two main segments: Optum and UnitedHealthcare. UnitedHealthcare is the largest insurance provider in the U.S., while Optum offers healthcare-related services such as software solutions and data analytics [2]. Acquisition and Legal Challenges - On January 6, 2021, UnitedHealth announced its agreement to acquire Change Healthcare, a healthcare technology company, to enhance its Optum business. The U.S. Department of Justice filed a lawsuit on February 24, 2022, challenging this acquisition on antitrust grounds, but the court ultimately allowed the deal to proceed, citing UnitedHealth's firewall policy [3]. Allegations of Misrepresentation - The class action complaint claims that UnitedHealth misled investors by assuring them of robust firewall processes to prevent the sharing of sensitive customer information between UnitedHealthcare and Optum. These misrepresentations allegedly led to inflated stock prices during the class period [4]. Impact of DOJ Investigation - The truth regarding the potential anti-competitive behavior emerged on February 27, 2024, when it was reported that the DOJ had reopened its investigation into UnitedHealth. Following this news, UnitedHealth's stock price fell by $27 per share, resulting in a loss of nearly $25 billion in shareholder value [5].