Humana (HUM) Surges After Medicare Advantage Payment Increase

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Apr 07, 2025
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Summary:

  • Humana (HUM, Financial) sees a 15% rise in post-market trading due to a significant increase in Medicare Advantage payments for 2026.
  • Analysts predict a potential 15.09% upside for Humana, with price targets ranging significantly.
  • GuruFocus estimates suggest a massive potential upside, forecasting the stock's GF Value will rise to $654.69.

Humana Inc. (HUM) has recently experienced a notable surge, climbing 15% in post-market trading. This upward momentum comes following the announcement from the U.S. Centers for Medicare & Medicaid Services of a substantial 5.06% increase in Medicare Advantage payments for 2026. This adjustment not only exceeds initial forecasts but also represents a $25 billion elevation from previous estimates, signaling positive news for investors.

Wall Street Analysts Forecast

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Wall Street's outlook for Humana is optimistic yet varied. Based on the one-year price targets proposed by a panel of 21 analysts, the average target for Humana Inc. (HUM, Financial) stands at $293.15. Analysts have set a high estimate of $402.23 and a conservative low of $241.00. These projections imply a potential upside of 15.09% from the current share price of $254.71. For more in-depth analysis, visit the Humana Inc (HUM) Forecast page.

Brokerage Recommendations

Currently, Humana Inc. (HUM, Financial) holds an average brokerage recommendation of 2.7, translating to a "Hold" status among 27 brokerage firms. This scale indicates investor caution, with the rating ranging from 1 (Strong Buy) to 5 (Sell).

GuruFocus Valuation Estimates

According to GuruFocus estimates, Humana's estimated GF Value projects at an impressive $654.69 one year from now, suggesting a potential upside of 157.03% from the current price of $254.71. This GF Value is a key metric that examines the fair value of the stock, taking into account historical trading multiples, past business growth, and future performance projections. For a comprehensive overview, reference the Humana Inc (HUM, Financial) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.