UnitedHealth Group investors have faith in new CEO Stephen Hemsley and his management team to turnaround Optum health services business after a tough year. Hemsley signed a three-year contract with a $60 million stock payout and bought $25 million in shares.

UnitedHealth’s plan to close Medicare Advantage plans could drive patients to Optum’s physician network. The company will exit 109 U.S. counties and around 100 plans, impacting 600,000 members, but will still offer plans in 2,191 counties.

Higher-cost Medicare patients have impacted Optum’s financials. Investors are optimistic about Hemsley’s operational leadership and the addition of CFO Wayne DeVeydt. Shares have rebounded nearly 50% since Buffett’s purchase, but are down 30% for the year.

Analysts expect UnitedHealth’s insurance business to return to profit margin goals in 2026. At least 8 analysts have raised share-price targets, with an average estimate of $2.82 per share for the third quarter. Investors are looking for a full-year profit forecast increase.

Read more at Yahoo Finance: UnitedHealth investors pin turnaround hopes on new CEO