1) Humana Inc. (NYSE:HUM)
Market cap (As of 25 October): $31.3 billion
Forward P/E (As of 25 October): 13.21x
% Decline on a YTD Basis: ~44.5%
Number of Hedge Fund Holders: 71
Humana Inc. (NYSE:HUM) provides medical and specialty insurance products in the US.
Wall Street believes that Humana Inc. (NYSE:HUM)’s diversified, value-based healthcare delivery and services model should drive its topline growth. The company’s focus on serving Medicare-eligible and disabled individuals via diversified healthcare delivery and services might also strengthen its market position. Humana Inc. (NYSE:HUM) has been undergoing a leadership transition. The new CEO continues to ramp up the turnaround efforts. The analysts believe that these efforts are focused on improving operational efficiency, enhancing healthcare delivery, and potentially exploring new growth opportunities.
The company announced plans to reduce its workforce and implement cost-saving measures. These measures should help Humana Inc. (NYSE:HUM) tackle financial pressures from the star ratings decline and position for future growth. Its healthcare delivery and services infrastructure is a key growth enabler. As per analysts, this infrastructure should help the company improve outcomes and reduce costs over time. Eventually, this should provide a competitive advantage in the Medicare Advantage market.
Moving forward, Humana Inc. (NYSE:HUM)’s strong brand recognition in Medicare Advantage, healthy healthcare delivery and services infrastructure, and diversified portfolio of insurance products and health services are expected to support the company’s growth trajectory. Considering the US demographic trends, along with higher penetration of Medicare Advantage plans in the eligible population, Humana Inc. (NYSE:HUM) is well-placed to take advantage of the opportunities provided by one of the fastest-growing areas in US medical insurance.
Analysts at Cantor Fitzgerald reissued a “Neutral” rating on the shares of the company, setting a $395.00 price target on 1st October. Diamond Hill Capital, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:
“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.”
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