10 Best Health Insurance Stocks to Buy

4. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 71

Humana Inc. (NYSE:HUM) focuses on improving health and wellness by offering a wide range of healthcare benefits to its medical and specialty members. These services include fully-insured medical and specialty health insurance, covering vision, dental, and supplemental health benefits, as well as administrative services only (ASO) products for individuals and employer groups.

In the second quarter, Humana Inc. (NYSE:HUM) exceeded analyst expectations with an adjusted earnings per share of $6.96, surpassing the forecasted $5.87 by $1.09. The company also reported quarterly revenue of $29.54 billion, outperforming the consensus estimate of $28.53 billion.

RBC Capital reaffirmed its Outperform rating on Humana Inc. (NYSE:HUM) and increased its price target from $385 to $400. This update followed a detailed analysis of the company’s Q2 performance and management’s insights on seasonal trends affecting the latter half of the year. While the company expects a net reduction of approximately 560,000 individual Medicare Advantage (MA) members in the next year—representing a 10% attrition rate—RBC Capital remains optimistic about Humana’s outlook.

As of Q2 2024, Insider Monkey reported that 71 out of the 912 hedge funds they track held positions in Humana Inc. (NYSE:HUM). Among the leading hedge fund investors, Eagle Capital Management stood out with a significant stake in the company, valued at over $1.2 billion.

Diamond Hill Mid Cap Strategy stated the following regarding Humana Inc. (NYSE:HUM) in its Q2 2024 investor letter:

“Other top Q2 contributors included Humana Inc. (NYSE:HUM) and Boston Scientific Corporation. Shares of health insurance company Humana rebounded from their recent downturn, which was tied to investors’ concerns about weaker-than-expected Medicare Advantage rates for 2025 and was the byproduct of an overall difficult operating environment.”