HUM - Humana Inc.

NYSE - NYSE Delayed Price. Currency in USD
310.30
+8.74 (+2.90%)
At close: 4:02PM EST
Stock chart is not supported by your current browser
Previous Close301.56
Open304.73
Bid0.00 x 800
Ask329.70 x 800
Day's Range303.23 - 311.21
52 Week Range261.35 - 355.88
Volume1,278,446
Avg. Volume1,128,270
Market Cap42.066B
Beta (3Y Monthly)1.08
PE Ratio (TTM)25.52
EPS (TTM)12.16
Earnings DateApr 30, 2019 - May 6, 2019
Forward Dividend & Yield2.00 (0.66%)
Ex-Dividend Date2018-12-28
1y Target Est363.00
Trade prices are not sourced from all markets
  • InvestorPlace4 days ago

    UnitedHealth Stock Is a Buy, but Keep an Eye on the External Risks

    The case for insurer UnitedHealth Group (NYSE:UNH) seems almost too easy to make. UNH stock already has been one of the best performers in the market, rising 270% over the past five years. Earnings are expected to grow about 13% in 2019. Yet UnitedHealth stock trades at a seemingly attractive 18x multiple to this year's EPS guidance.With a 10% pullback from early December highs, a cheaper price seems to set up an attractive opportunity. UNH's recent performance and huge earnings growth speak well of management. The company's Optum unit is cutting-edge, and growing revenue while expanding margins. With $226 billion in revenue, meanwhile, UnitedHealth has the scale to serve customers and the size to pressure suppliers.All else equal, I'd expect UnitedHealth stock to keep climbing. Indeed, I recommended UNH a year ago, and even ~15% higher, I'm still bullish. But there are risks here, highlighted by near-term trading in UnitedHealth stock. And investors need to understand those risks before proceeding.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 U.S. Stocks That Are Coming to Life Again The Case for UnitedHealth StockThis simply seems like a good business. Growth has been phenomenal. The midpoint of 2019 EPS guidance of $14.40-$14.70 suggests a 155% increase from 2014 levels.Obviously, a lower tax rate and acquisitions have provided some outside help. But this is a company operating well, with revenue and margins both rising.UNH has a diversified portfolio, too. It has its hands in seemingly every market, with the insurer serving employers, individuals, Medicare, and state and local governments. The Global segment, built through targeted M&A, is now a $10 billion-plus revenue business.And Optum is at the forefront of changes in the industry. 2018 revenue rose double-digits, and operating margins continued to expand. Other PBMs (pharmacy benefit managers) are struggling. Rite Aid (NYSE:RAD) unit EnvisionRx has disappointed. Express Scripts managed to sell itself to Cigna (NYSE:CI), but at only a modest premium to 2015 highs. In that context, Optum's performance is even more impressive.This seems simply like a very attractive business. It's the largest health insurer in the world. Optum remains a roaring success. And yet UNH stock isn't that expensive, trading at less than 18x the midpoint of FY19 EPS guidance.Double-digit annual EPS growth, a 1.4% dividend and potentially a higher multiple over time mean UnitedHealth could return 10%+ annually for years to come. The Two Key Risks to UNH StockThere are two key risks, however. The first is that competitors are trying to gain scale themselves and expand their reach. Cigna bought out Express Scripts. CVS (NYSE:CVS) acquired Aetna. Rivals are coming after UnitedHealth's market lead.To be fair, larger mergers haven't played out. Cigna and Anthem (NYSE:ANTM) planned to merge back in 2017, but called it off. Aetna and Humana (NYSE:HUM) did the same. But competitors are trying to copy at least some of UnitedHealth's strategy, and their success could make them more formidable foes.The bigger risk is on the political front. UNH stock has struggled in recent sessions after the Trump Administration announced a plan to end drug rebates (which benefit PBMs like Optum). An apparently ham-handed response from Optum, which asked for 21 month's notice of any changes from drug manufacturers, brought some unwanted publicity, and framed Optum as potentially part of the problem - not the solution.From a long term standpoint, UnitedHealth almost certainly can adapt to any changes. But with net margins only just above 5%, even modest pressure on pricing, reimbursements, or other areas of the business can have a big impact on overall profits. And in the short-term, noise around regulatory changes could impact UnitedHealth stock, as appears to have been the case of late. A Matter of TrustAt these levels, at least some of the risks are priced in. And I'd be loath to put too much faith in the federal government, in particular, doing anything to notably change the healthcare model in the U.S.But that could change. A scenario where a Democratic candidate wins the Presidency in 2020 and is backed by a Democratic Congress is far from impossible. Should such a scenario seem plausible next year, UNH stock could start pricing in that risk.Right now, 18x earnings might seem cheap but it's not hard to picture UNH trading at 13-14x (or even worse) if investors believe regulators are coming for the company's margins.The changing political landscape and UnitedHealth's exposure to that landscape, mean this isn't a set-it-and-forget-it stock. Investors need to understand the risks and be willing to be nimble if political risk, in particular, starts to creep up.In the meantime, however, the pullback in UNH stock makes an attractive business available at an enviable price. And that's enough to make UNH a buy - at least for now.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 7 Forever Stocks to Buy for Long-Term Gains * 5 Self-Driving Car Stocks to Buy Compare Brokers The post UnitedHealth Stock Is a Buy, but Keep an Eye on the External Risks appeared first on InvestorPlace.

  • Independent hospital consortium reaches value-based care deal
    American City Business Journals5 days ago

    Independent hospital consortium reaches value-based care deal

    While specific local numbers weren't available, Humana has about 47,000 Medicare Advantage members in the state.

  • CNBC9 days ago

    Humana executives say Trump's drug rebate proposal would raise premiums, restrict consumer choice

    Trump's new plan to lower drug costs would raise premiums for the broader populations, according to insurance executives. The Trump administration's plan to force insurers to pass on drugmaker discounts to seniors at the pharmacy counter would upend the market and raise consumer premiums in the end, health insurance executives warned investors this week. The Trump administration proposed a ban one week ago on confidential discounts pharmacy benefits management plans negotiate with drugmakers when it comes to government Medicare and Medicaid plans.

  • Markit9 days ago

    See what the IHS Markit Score report has to say about Humana Inc.

    Humana Inc NYSE:HUMView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for HUM with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting HUM. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding HUM totaled $17.20 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. Although HUM credit default swap spreads are decreasing, they remain near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • Thomson Reuters StreetEvents10 days ago

    Edited Transcript of HUM earnings conference call or presentation 6-Feb-19 2:00pm GMT

    Q4 2018 Humana Inc Earnings Call

  • Aledade and Humana Announce Agreement Expanding Value-Based Care for Humana Medicare Advantage Members in Three States
    Business Wire10 days ago

    Aledade and Humana Announce Agreement Expanding Value-Based Care for Humana Medicare Advantage Members in Three States

    Aledade, Inc. and leading health and well-being company Humana Inc. today announced a value-based care agreement to broaden the availability of coordinated, quality care for Humana Medicare Advantage members in three states.

  • Humana Inc (HUM) Q4 2018 Earnings Conference Call Transcript
    Motley Fool10 days ago

    Humana Inc (HUM) Q4 2018 Earnings Conference Call Transcript

    HUM earnings call for the period ending December 31, 2018.

  • Reuters11 days ago

    Health insurer Humana's full-year profit forecasts disappoints

    Humana Inc's full-year profit forecast came in shy of analysts' estimates on Wednesday as its Medicare Prescription drug plans remained under pressure and said it expects 2019 margins in the fast-growing business to fall short of its own targets. Shares of Humana were trading down about 2 pct at $296.43 mid-day, reversing course from their premarket gains. Humana's prescription drug plans have remained under pressure as customers opt for lower priced options from rivals.

  • Earnings Data Deluge
    Zacks11 days ago

    Earnings Data Deluge

    Earnings Data Deluge

  • Big Q4 Numbers & New Trade Data
    Zacks11 days ago

    Big Q4 Numbers & New Trade Data

    Plenty of Q4 earnings numbers join new Manufacturing and Trade data, some of which had been previously delayed due to the government shutdown.

  • Humana's (HUM) Q4 Earnings Surpass Estimates, Improve Y/Y
    Zacks11 days ago

    Humana's (HUM) Q4 Earnings Surpass Estimates, Improve Y/Y

    Humana's (HUM) fourth-quarter earnings gain on the back of Medicare Advantage membership growth and operating efficiencies.

  • Reuters11 days ago

    Humana says overhaul of drug rebate rule could raise premiums

    Health insurer Humana Inc said on Wednesday the U.S. government's proposal to overhaul the drug rebate rule could raise premiums for the "broader population". The U.S. government last week proposed a rule to end a decades-old system of after-market discounts called rebates that pharmacy benefit managers receive from drugmakers. "(The) issue is more around the impact on the customer, the broad customer who is going to see a premium increase and a meaningful one," Chief Financial Officer Brian Kane said on a post-earnings call.

  • Humana (HUM) Tops Q4 Earnings and Revenue Estimates
    Zacks11 days ago

    Humana (HUM) Tops Q4 Earnings and Revenue Estimates

    Humana (HUM) delivered earnings and revenue surprises of 4.74% and 1.76%, respectively, for the quarter ended December 2018. Do the numbers hold clues to what lies ahead for the stock?

  • Humana: 4Q Earnings Snapshot
    Associated Press11 days ago

    Humana: 4Q Earnings Snapshot

    On a per-share basis, the Louisville, Kentucky-based company said it had net income of $2.58. Earnings, adjusted for one-time gains and costs, came to $2.65 per share. The results surpassed Wall Street ...

  • CNBC11 days ago

    Stocks making the biggest moves premarket: Eli Lilly, Humana, Disney, Spotify & more

    Check out the companies making headlines before the bell:Eli Lilly LLY – The drugmaker reported adjusted quarterly profit of $1.33 per share , falling a penny a share below estimates. Revenue beat forecasts as its newer drugs posted higher sales.

  • MarketWatch11 days ago

    Humana earnings and revenue beat expectations

    Humana Inc. reported Wednesday fourth-quarter earnings and revenue that beat expectations, helped by lower inpatient medical utilization, which was partially offset by higher outpatient spending. The health care company's stock was still inactive in premarket trade. Net income was $436 million, or $2.58 a share, compared with $490 million, or $1.29 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $2.65, above the FactSet consensus of $2.53. Revenue rose to $14.17 billion from $13.19 billion, beating the FactSet consensus of $13.94 billion. For 2019, the company expects adjusted EPS of $17.00 to $17.50, compared with the FactSet consensus of $17.48. Humana shares have dropped 8.6% over the past three months, while the SPDR Health Care Select Sector ETF has slipped 0.2% and the S&P 500 has eased 0.6%.

  • Reuters11 days ago

    Health insurer Humana posts 7.4 pct rise in quarterly revenue

    U.S. health insurer Humana Inc reported a 7.4 percent rise in its fourth-quarter revenue on Wednesday, as more customers enrolled in its government-backed Medicare Advantage health plans. Humana said its ...

  • Business Wire11 days ago

    Humana Reports Fourth Quarter 2018 Financial Results; Provides Full Year 2019 Financial Guidance

    LOUISVILLE, Ky.-- -- Full year 2018 earnings per diluted common share of $12.16 on a GAAP basis, $14.55 on an Adjusted basis 2018 earnings outperformance fueled by continued strong Medicare Advantage results 2019 EPS guidance of approximately $16.60 to $17.10 on a GAAP basis, $17.00 to $17.50 on an Adjusted basis, exceeding long-term growth targets Reaffirmed expected full year 2019 individual Medicare ...

  • Investing.com11 days ago

    Top 5 Things to Know in The Market on Wednesday

    Investing.com - Here are the top five things you need to know in financial markets on Wednesday, February 6:

  • TheStreet.com12 days ago

    Wednesday Earnings Preview: GM, Humana, Chipotle, Take-Two All Report

    A smattering of big earnings reports will hit the wires Wednesday February 6. Four giants across different sectors will report. Alphabet Inc. just beat earnings estimates, but its shares slipped, as Wall Street became cautious regarding its near-term cost structure.

  • Benzinga12 days ago

    Humana Q4 Earnings Outlook

    On Wednesday, Feb. 6, Humana (NYSE: HUM ) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release. Earnings and Revenue Based on Humana ...

  • BioTelemetry (BEAT) Hits 52-Week High, Can the Run Continue?
    Zacks12 days ago

    BioTelemetry (BEAT) Hits 52-Week High, Can the Run Continue?

    BioTelemetry (BEAT) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.

  • What's in Store for Humana (HUM) Stock in Q4 Earnings?
    Zacks13 days ago

    What's in Store for Humana (HUM) Stock in Q4 Earnings?

    Higher enrollment and strong segmental results are expected to help Humana (HUM) in fourth-quarter earnings.

  • 3 Goldman Portfolios That Are Crushing The Market
    Investopedia17 days ago

    3 Goldman Portfolios That Are Crushing The Market

    These baskets of stocks from Goldman Sachs have posted YTD 2019 gains nearly double that of the S&P 500. This is the first of 2 stories on them.