Humana, Inc. (HUM, Financial) recently encountered a hurdle as their appeal for a higher rating in its Medicare Advantage star program was turned down. The company revealed this development in a legal document submitted on Tuesday, highlighting its ongoing efforts to enhance its position within the highly competitive Medicare Advantage market.
This decision poses significant implications for Humana, as star ratings are a crucial factor for health insurers in attracting and retaining Medicare beneficiaries. The ratings influence bonus payments and have a direct impact on enrollment decisions made by seniors.
While the rejection might challenge Humana's strategic objectives in the short term, the company remains focused on delivering quality service to its members and is likely to continue pursuing other avenues to strengthen its performance in the Medicare sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Humana Inc (HUM, Financial) is $303.73 with a high estimate of $402.23 and a low estimate of $241.00. The average target implies an upside of 5.49% from the current price of $287.92. More detailed estimate data can be found on the Humana Inc (HUM) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Humana Inc's (HUM, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Humana Inc (HUM, Financial) in one year is $655.24, suggesting a upside of 127.58% from the current price of $287.92. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Humana Inc (HUM) Summary page.
