Human today
- 52-week range
- $ 213.31
▼
$ 406.46
- Dividend yield
- 1.30%
- P/e ratio.
- 27.32
- Value is valuable
- $ 285.68
Medical insurance giant Humana Inc. NYSE: Hum The shares initially rose in response to an income report in the fourth quarter of 2024, despite losses.
The giant of the medical sector was one of the first media that voiced the alarm of the growing costs for the use of hospitals, especially with members of the Medicare Advantage (MA) plan in the 4th quarter of 2023.
Since then, many other suppliers of MA plans like CVS Health Co. NYSE: CVSIN Unitedhealth Group Inc. NYSE: UNHAnd Cennene Co. NYSE: CNC They saw their medical care ratio (MCR) when the profit was reduced.
That is why MCR is so important for medical insurance carriers
MCR represents the percentage of patient premiums that the insurance company uses to cover medical services and benefits – the main expenses directly affecting participants. The lower the MCR, the higher the profit and vice versa. Recently, the growing health costs have led to MCR growth when the profit fell. Some carriers call this the ratio of medical losses (MLR) or the ratio of medical benefits (MBR). Humana calls this the ratio of benefits (BR) or a adjusted ratio of benefits (ABR). Br Humana grew to 91.9% in the quarter. MA plans have a high BRS, and Medicaid has an even higher BR.
The Human Financial Director of Celeste Mellet points to this in his conference in 4024 of 2024, when he was asked about their leadership MLR 2025: “Firstly, most of the improvement leaves the outputs of the MA plan, which had a very high ratio of benefit. We also made other adjustments to our advantages in our remaining plans, which also improved the ratio. Medicaid has a higher profit ratio compared to MA, as you know. Secondly, the effect of IRA, which increases the gain, taking into account the increase in revenue with compensation for increasing claims. And, in -three, gradual investments that are important for the long -term perspective, but increase the gain in the near future. ”
Q4 completes the painful year of growing manuals
Humana announced the loss of the EP of the 4th quarter in the amount of $ 2.6, which will continue to surpass consensus estimates for 5 cents. Revenue increased by 10.4% to 29.21 billion dollars. USA, surpassing consensus estimates by $ 28.81 billion. USA.
Humana “warned” that they could see a 10% decrease (550,000) in membership in MA from a decision to get out of several unprofitable markets and districts. The market took this warning with a sigh of relief when the shares grew. The company is the second largest supplier of the MA plans for Unitedhealth. The company launched downSide throughout the year in 2025, about 16.25 US dollars on EPS profit, skipping an assessment of consensus analyst at $ 16.71. The prognosis of revenue for the whole year for 2025 financial year is 126 billion US dollars to $ 128 billion.
To his honor, Humana was “early” in the detection of growing indicators of the use of MA members. However, unlike CIGNA group NYSE: CIDwho sold all his business Medicare, Humana decided to continue to grow membership in MA. However, they began to reduce the exposition in 2025. That is why the shares saw growth the next day.
Humana Stock is approaching the fact that the bulls or bears won?
The descending triangle, as a rule, is bear cards. It has a descending upper trend line acting as resistance and the flat lower line of the trend, providing support. The pattern is confirmed when the reserves break below the lower support line, although the breakthrough above the resistance line can occur less often.
GUM formed a daily descending triangle with the resistance of the descending upper line of the trend line, which was formed at 364.51 US dollars, converging with horizontal support of the lower trend with a flat bottom of the US 231.65. VWAP’s daily resistance is $ 265.42, and the daily RSI resells 33-point. While Hum initially bounced in his report of the 4th quarter, investors used this opportunity to sell in short-term power. Over time, the channel will become narrower in the direction of the top point, where the final breakthrough will be made through the upper line of the trend or a breakthrough through the lower trend line. Fibonacci (FIB) The pumping support levels amount to $ 241.79, $ 223,11, $ 210.30 $ and 196.66 US dollars.
The average consensus target price HUM Stock is 15.55% higher up to $ 293.05, and the highest target price of analysts is 396.00 US dollars. This has 19 ratings of purchase 19 and five ratings. The shares have 3.82% short percentage.
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