Humana today
- 52 weeks
- 213.31 dollars
▼
406.46 dollars
- Profit
- 1.30 %
- P/E ratio.
- 27.32
- The target price
- 285.68 dollars
Health insurance giant Humana Inc. New York: Hummat The stocks initially rose reaction to the fourth profit report of 2024 despite the loss of losses.
The medical sector giant was one of the first transportation companies to explore the high costs of the use of internal patients, especially with members of the Medicare Advantage plan (MA) in the fourth quarter 2023.
Since then, many other MA planners are admired Cvs Health Co. Nyse: cvsfor UNITEDHELTH GROUP Inc. New York: United NationsAnd Cennene New York: CNC It witnessed a high rate of medical care (MCR) with a decrease in profits.
Here is a decisive reason for health insurance companies in MCR
The MCR represents the percentage of patient installments used by the insurance company to cover medical services and benefits – the basic expenses that directly affect the members. The lower the MCR, the higher the profits, and vice versa. Recently, the high costs of health care caused the rise of MCRS with low profits. Some transportation companies are called the level of medical loss (MLR) or the percentage of medical benefits (MBR). Humana calls it a BR interest rate or a modified interest rate (ABR). Humana’s BR rose to 91.9 % in a quarter. MA plans have high BRS, and medicaid has a higher BRS.
Humana Cfo Celeste Mellet refers to this in the Q4 2024 collective call when they were asked about MLR instructions for 2025, “First, the majority of improvement is driven by the MA plan exits, which had all very high interest rates. We have also made other adjustments to our benefits in Our remaining plans, which also improved the ratio. And you know.
Q4 concludes a painful year from the high rates of benefits
Humana reported the loss of the stock profit in Q4 of $ 2.16, which still overcomes the unanimity estimates of 5 cents. Revenue grew by 10.4 % year on an annual basis to $ 29.21 billion, overcoming the unanimity estimates of $ 28.81 billion.
Humana “warned” that they might see a 10 % decrease (550,000) in MA membership due to its decision to leave many unspeakable markets and provinces. The market took this warning with a sigh of relief with the rise in shares. The company is the second largest MA plan behind UNITEDHELHELTH. The company issued a 2025 profit guidance on the other side of the share profitability of approximately $ 16.25, and lost the estimates of a consensus of $ 16.71. The revenues of the entire year for the fiscal year are expected 2025 126 billion dollars to 128 billion dollars.
Thanks to this, Humana was “early” in discovering the increasing use rates of MA members. Still, unlike CIGNA collection Nyse: cidWho sold the entire medical care work, Humana decided to continue the growth of her membership in a master’s degree. However, they began to reduce exposure in 2025. For this reason, the arrow saw a rise the next day.
Humana shares approach the collapse point – will bulls or bears win?
Clear triangle is usually a declining graph style. It features a disputed upper direction line as resistance and flat lower direction line that provides support. The pattern is confirmed when the stock is broken below the lower support line, although the collapse is higher than the resistance line can occur frequently.
HUM formed a daily triangle with the resistance of the disputed upper direction line, which was formed at $ 364.51, converging with the support of the flat horizontal trend line at $ 231.65. Daily VWAP resistance is $ 265.42, and daily RSI exceeds 33. While Home initially wore the last quarter report, investors used this opportunity for sale to a short -term force. Over time, the channel will become narrower towards the Apex point, as it will follow the final collapse through the upper direction line or collapse through the lower direction line. Fibonacci (FIB) levels of subsidy to decline at $ 241.79, $ 223.11, $ 210.30, and $ 196.66.
The average HUM Stock consensus price is 15.55 % at $ 293.05, and the highest price of analysts sit at $ 396.00. It has 19 analysts to buy and five reservation assessments. The arrow has a short benefit of 3.82 %.
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