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With a market cap of $30.2 billion, Louisville, Kentucky-based Humana Inc. (HUM) is a leading health care plan provider in the United States, offering medical and specialty insurance products. The company operates through two main segments, Insurance and CenterWell, providing Medicare, Medicaid, and employer-sponsored health plans.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Humana fits this criterion perfectly. It also offers pharmacy benefit management, home health services, and operates senior-focused primary care centers. Humana serves individuals, employer groups, and military personnel through a vast network of health care providers.
However, the health insurer has fallen 38.7% from its 52-week high of $406.46. Humana shares have declined 8.7% over the past three months, which is less pronounced than the broader Nasdaq Composite's ($NASX) 11.3% decrease during the same period.
Longer term, HUM stock has dropped 1.8% on a YTD basis, a less severe decline compared to the NASX's 8.6% decline over the same period. Nevertheless, HUM has dipped 27.8% over the past 52 weeks, lagging behind NASX's 8.5% gain.
HUM has consistently traded below both its 50-day and 200-day moving averages since last year.
Despite reporting a better-than-expected Q4 2024 adjusted loss of $2.16 per share and adjusted revenue of $29.1 billion, Humana’s shares fell 3.6% on Feb. 11 due to a weak 2025 outlook. The company forecasted an annual adjusted profit of $16.25 per share for 2025, missing Wall Street’s estimate. Additionally, Humana projected a sharper-than-expected decline of 550,000 Medicare Advantage members. Investors were also worried about rising medical costs, with the medical cost ratio increasing to 91.5%, exceeding analysts’ expectations.
In contrast, rival CVS Health Corporation (CVS) has outperformed HUM. CVS Health shares have declined 13.8% over the past 52 weeks and a surge of 44.5% on a YTD basis.
Despite HUM's underperformance, analysts remain moderately optimistic about its prospects. Among the 23 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $286.20.
On the date of publication, Sohini Mondal 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.
