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Based in Louisville, Kentucky, Humana Inc. (HUM) provides medical and specialty insurance products. Valued at $43.1 billion by market cap, the company offers individuals medical and supplemental benefit plans. It sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies.
Companies valued at $10 billion or more are generally tagged as “large-cap” stocks, and Humana fits this criterion perfectly. The company distinguishes itself as one of the largest health insurance providers in the U.S., and its plans are available in nearly 3,000 U.S. countries, which is the most of any Medicare Advantage provider.
Shares of HUM are trading 35.8% below their 52-week high of $530.54, which they hit on Oct. 17, 2023. HUM has declined 3.2% over the past three months, lagging behind the broader iShares U.S. Healthcare Providers ETF’s (IHF) 8.6% gains over the same time frame.
In the longer term, HUM stock is down 25.6% on a YTD basis, significantly lagging behind IHF’s 8.4% gains. The stock has declined 27.2% over the past 52 weeks, considerably underperforming IHF’s 15.1% returns over the same time frame.
To confirm the bearish price trend, HUM has recently been trading below its 200-day moving average since December 2023. However, with some fluctuations, it has been trading above its 50-day moving average since early May.
Shares of HUM fell 10.6% following its Q2 earnings release on Jul. 31 despite its adjusted EPS of $6.96 surpassing Wall Street estimates by 18.2% and revenues of $29.4 billion coming in 2.6% higher than the forecast. The company’s adjusted EPS for the year is projected to be $16, which indicates a 38.7% decline from the 2023 reported figure.
HUM has also lagged behind its rival Cigna Group’s (CI) 26.8% gain over the past 52 weeks and 19.2% return on a YTD basis.
Despite HUM’s underperformance relative to the broader sector, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts in coverage, and the mean price target of $394.95 suggests a premium of 14.1% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
