Humana (HUM) shares rallied 3.1% in the last trading session to close at $293.80. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.5% gain over the past four weeks.This marks the fourth consecutive day of Humana’s price increases. Increased optimism related to an uptick in Medicare Advantage plan payments for 2026, which would amount to over $21 billion in additional funds for insurers and favorable earning ...

Talicia is now covered by Humana's Part D Plan, providing access to Talicia for H. pylori therapy to more than eight million additional Medicare lives, without requiring prior therapeutic steps or authorizationThe recently updated American College of Gastroenterology (ACG) Clinical Guideline lists Talicia as a first-line option for treatment of H. pylori infection. Talicia continues to be the most prescribed branded H. pylori therapy by U.S. gastroenterologistsAdditionally, new data describing the foundatio ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Humana (HUM) . This company, which is in the Zacks Medical - HMOs industry, shows potential for another earnings beat.When looking at the last two reports, this health insurer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 18.85%, on average, in the last two quarters.For the ...

Humana Inc. (HUM) benefits from an extensive Medicaid and Medicare membership base, an aging U.S. population, strategic acquisitions and a strong financial position.Humana’s Zacks Rank & Price PerformanceHumana currently carries a Zacks Rank #3 (Hold).The stock has gained 4.9% in the past three months against the industry’s 5.6% decline. The Zacks Medical sector decreased 11.5% while the S&P 500 composite inched up 0.9% in the same time frame.Image Source: Zacks Investment ResearchHUM’s Favorable Style Scor ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Humana (HUM) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][3][7] Valuation Metrics - Humana has a Price-to-Book (P/B) ratio of 1.84, which is significantly lower than the industry average of 3.19, indicating that HUM may be undervalued [4] - The Price-to-Sales (P/S) ratio for Humana is 0.3, compared to the industry's average P/S of 0.35, further supporting the notion of undervaluation [5] - Humana's Price-to-Cash Flow (P/CF) ratio stands at 13.65, which is lower than the industry average of 18.50, suggesting a solid cash outlook for the company [6] Investment Outlook - With a Zacks Rank of 2 (Buy) and an A for Value, Humana is positioned as one of the best value stocks currently available [3][7] - The combination of strong valuation metrics and a positive earnings outlook makes Humana an attractive option for value investors at this time [7]

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Shares of Humana Inc (NYSE:HUM) are down 3.7% at $277.38 at last glance, after Cigna Group (NYSE:CI) said it was not pursuing a merger with the smaller health insurance name, and will instead prioritize share buybacks. Cigna stock is on the rise after the news, last seen up 6.7% to trade at $341.04. A Very Ho-Hum Year for HumanaSince the start of the year, Humana stock is underperforming with a 39.4% deficit. The $300 level, which provided support March-April, appears to be moving in as an area of pressure, ...

KEY TAKEAWAYSHumana shares are tumbling Monday morning after The Cigna Group said it is not pursuing a merger with its smaller health insurance rival.Negotiations by Cigna to buy Human fell apart last year but Bloomberg reported last month that the two companies had held informal talks about a deal, with discussions in the early stages.Cigna shares are jumping in premarket trading. Humana (HUM) shares are falling 5% in premarket trading Monday after The Cigna Group (CI) said it is not pursuing a combination ...

Financial Performance - Net income attributable to Humana was $0.5 billion, or $3.98 per diluted common share, for the three months ended September 30, 2024, compared to $0.8 billion, or $6.71 per diluted common share, for the same period in 2023[152] - Net income attributable to Humana was $1.9 billion, or $15.72 per diluted common share, for the nine months ended September 30, 2024, compared to $3.0 billion, or $24.26 per diluted common share, for the same period in 2023[152] - Net income decreased by $350 million (42.2%) to $480 million in Q3 2024, with diluted earnings per share dropping to $3.98 from $6.71 in Q3 2023[161] - Consolidated premiums revenue increased by $2.9 billion (11.4%) to $28.0 billion in Q3 2024 compared to $25.1 billion in Q3 2023, driven by higher Medicare premiums and membership growth[162][163] - Consolidated services revenue grew by $87 million (8.6%) to $1.1 billion in Q3 2024, primarily due to growth in the primary care business, partially offset by the v28 risk model revision[164] - Investment income increased by $35 million (11.4%) to $343 million in Q3 2024, driven by higher interest income on debt securities[164] - Consolidated benefits expense rose by $3.4 billion (15.5%) to $25.1 billion in Q3 2024, with the benefit ratio increasing by 330 basis points to 89.9% due to elevated Medicare Advantage medical costs[165] - Consolidated operating costs increased by $68 million (2.1%) to $3.3 billion in Q3 2024, with the operating cost ratio decreasing by 100 basis points to 11.5% due to scale efficiencies and cost-saving initiatives[168] - Depreciation and amortization expenses increased by $9 million (4.5%) to $210 million in Q3 2024, primarily due to capital expenditures[170] - Interest expense rose by $55 million (48.2%) to $169 million in Q3 2024, driven by higher interest rates and increased average debt balances[171] - The effective income tax rate increased to 24.4% in Q3 2024 from 23.5% in Q3 2023, due to a shift in earnings mix between the Insurance and CenterWell segments[172] - The consolidated benefit ratio was positively impacted by $24 million of favorable prior-period medical claims reserve development in Q3 2024, reducing the ratio by approximately 10 basis points[166] Membership and Business Segments - Approximately 3,984,900 members, or 70%, of individual Medicare Advantage members were in value-based relationships under the integrated care delivery model as of September 30, 2024, compared to 3,727,500 members, or 69%, at September 30, 2023[151] - Individual Medicare Advantage membership increased by 284,800 members, or 5.3%, primarily due to membership additions from the previous Annual Election Period (AEP), including a net increase of 71,600 D-SNP members, or 8.2%[176] - Group Medicare Advantage membership grew by 36,400 members, or 7.1%, driven by growth in small and medium group accounts[177] - Medicare stand-alone PDP membership decreased by 570,100 members, or 19.8%, due to intensified competition[177] - State-based contracts and other membership increased by 181,500 members, or 14.4%, reflecting new contract implementations partially offset by membership loss from the public health emergency unwind[178] - Commercial fully-insured medical membership decreased by 383,400 members, or 93.7%, and commercial ASO medical membership decreased by 261,900 members, or 92.1%, due to the planned exit of the Employer Group Commercial Medical Products business[179] - Specialty membership decreased by 397,500 members, or 8.0%, primarily due to non-renewal of dental and vision plans as a result of exiting the Employer Group Commercial Medical Products business[180] - The company anticipates finalizing the exit from the Employer Group Commercial Medical Products business in the first half of 2025[140] - The Medicare Part D benefit design results in a decreasing benefit ratio as the year progresses, with the PDP benefit ratio generally decreasing as the year progresses[147] - The company's integrated care delivery model aims to improve health outcomes and affordability, with a focus on primary, physician-directed care for members[151] Insurance Segment Performance - The Employer Group Commercial Fully-Insured business increased the Insurance segment benefit ratio by 10 basis points for the three months ended September 30, 2024, and by 20 basis points for the same period in 2023[148] - The Employer Group Commercial Fully-Insured business increased the Insurance segment operating cost ratio by 10 basis points for the three months ended September 30, 2024, and by 40 basis points for the same period in 2023[150] - Insurance segment premiums revenue increased by $2.9 billion, or 11.4%, in the 2024 quarter and by $8.2 billion, or 10.8%, in the 2024 period, driven by higher per member Medicare premiums and Medicare Advantage membership growth[181] - Insurance segment services revenue decreased by $31 million, or 12.1%, in the 2024 quarter and by $15 million, or 2.1%, in the 2024 period[182] - The Insurance segment benefit ratio increased by 300 basis points to 90.6% in the 2024 quarter and to 89.8% in the 2024 period, primarily due to elevated Medicare Advantage and state-based contracts medical cost trends[183] - The Insurance segment operating cost ratio decreased by 120 basis points to 9.2% in the 2024 quarter and by 130 basis points to 8.6% in the 2024 period, driven by scale efficiencies and administrative cost reductions[184] CenterWell Segment Performance - CenterWell services revenue increased by $118 million (15.5%) to $877 million in Q3 2024 compared to $759 million in Q3 2023, driven by growth in the primary care business[187] - CenterWell intersegment revenues grew by $263 million (6.7%) to $4.2 billion in Q3 2024, primarily due to expansion in the home solutions business and growth in the primary care business[188] - CenterWell income from operations decreased by $18 million (4.5%) to $382 million in Q3 2024, primarily due to the impact of the v28 risk model revision[186] - The operating cost ratio for the CenterWell segment increased by 100 basis points to 91.3% in Q3 2024, driven by the unfavorable impact of the v28 risk model revision[190] Cash Flow and Capital Management - Cash and cash equivalents increased to $5.1 billion at September 30, 2024, up from $4.7 billion at December 31, 2023[192] - Net cash provided by operating activities decreased by $7.6 billion to $3.5 billion in the nine months ended September 30, 2024, compared to $11.1 billion in the same period in 2023[193] - Total net capital expenditures, excluding acquisitions, were $421 million in the nine months ended September 30, 2024, down from $721 million in the same period in 2023[198] - The company issued $2.25 billion in senior notes in March 2024, with net proceeds of $2.23 billion used for general corporate purposes, including repayment of existing debt[203] - Medicare receivables decreased by $137 million to $1.29 billion at September 30, 2024, reflecting membership growth and timing of CMS risk-adjustment model collections[196] - The company repurchased $213 million principal amount of senior notes for approximately $196 million cash under a Rule 10b5-1 Repurchase Plan in 2023[204] - Issued $500 million of 5.700% senior notes due 2026 and $750 million of 5.500% senior notes due 2053, with net proceeds of $1.2 billion used for debt repayment and general corporate purposes[206] - Net repayments from commercial paper issuance were $895 million in 2024, while net proceeds from issuance were $1.6 billion in 2023, with a maximum outstanding principal of $2.7 billion in 2024[206] - Repurchased $750 million and $980 million of common shares in 2024 and 2023, respectively, and acquired $18 million and $31 million of shares related to employee stock plans in the same periods[207] - Paid dividends of $323 million and $320 million to stockholders in 2024 and 2023, respectively[207] - Cash, cash equivalents, and short-term investments at the parent company increased to $609 million at September 30, 2024, from $510 million at December 31, 2023[214] - State-regulated subsidiaries had aggregate statutory capital and surplus of $13.5 billion, exceeding minimum regulatory requirements of $10.6 billion as of June 30, 2024[216] - Net unrealized loss position decreased by $448 million to $846 million at September 30, 2024, from $1,294 million at December 31, 2023, with gross unrealized losses of $998 million due to rising interest rates[218] - Average duration of the investment portfolio increased to 3.3 years at September 30, 2024, from 3.0 years at December 31, 2023, with a 1% interest rate increase potentially decreasing fair value by $803 million[219] - Investment-grade credit rating at September 30, 2024, was BBB by S&P and Baa2 by Moody's, with potential downgrades triggering interest rate increases on $250 million of senior notes[213] - Ordinary dividends paid to the parent company totaled approximately $0.5 billion during the nine months ended September 30, 2024[216] Value Creation and Strategic Initiatives - Charges related to value creation initiatives were $55 million and $151 million for the three and nine months ended September 30, 2024, respectively, and $52 million for the three and nine months ended September 30, 2023[141] - The company is evaluating the impact of the SEC's final regulation on climate-related disclosures, which is effective for the annual report for the year ended December 31, 2025[158]

Humana Inc. (HUM) posted third-quarter 2024 adjusted earnings per share (EPS) of $4.16, which surpassed the Zacks Consensus Estimate by 19.5%. However, the bottom line fell from $7.78 per share a year ago. Adjusted revenues improved 14.8% year over year to $29.3 billion. The top line beat the consensus mark by 2.2%. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The better-than-expected quarterly results benefited from strong premium growth, improved operating cost management and ...