Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Wednesday, Cantor Fitzgerald analysts maintained their Neutral rating for Humana stock (NYSE: NYSE:HUM), keeping the price target steady at $290.00. The decision comes after an analysis of market data, which showed that Humana experienced a smaller impact from redetermination processes compared to its peers. According to InvestingPro data, 13 analysts have recently revised their earnings expectations downward, with the stock currently trading at $233.42.
The analysis highlighted that Humana saw only a 2% change in enrollment, contrasting with a 33% change observed in the broader market. This data supports Humana’s previous statements that the redetermination impact was limited. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with the company maintaining strong financial health metrics and a solid 1.91 current ratio.
Cantor Fitzgerald’s assessment reflects confidence in Humana’s ability to manage enrollment fluctuations effectively. The analysts’ review of payors indicated that Humana had the largest difference in enrollment changes compared to market averages.
Humana’s stock performance and market strategies continue to be closely monitored by investors and analysts, with particular attention to how the company navigates industry challenges.
In other recent news, Humana has maintained its full-year adjusted earnings per share (EPS) forecast, projecting an EPS of about $16.25, which is slightly below the Bloomberg Consensus estimate of $16.37. The company also anticipates an EPS of approximately $14.68, lower than the estimated $15.43. Furthermore, Bernstein SocGen Group analysts reiterated their Outperform rating for Humana, setting a price target of $313.00, citing stable utilization trends and positive industry outlooks as key factors. Meanwhile, Humana is implicated in a False Claims Act complaint filed by the United States, alleging that illegal kickbacks were paid by insurers, including Humana, to brokers for enrolling individuals into Medicare Advantage plans. The lawsuit alleges that brokers prioritized plans offering the highest kickbacks, potentially impacting the suitability of plans for beneficiaries.
UnitedHealth Group (NYSE:UNH) has been in the spotlight with TD Cowen maintaining a Buy rating and a $520.00 price target, despite the company withdrawing its 2025 guidance due to accelerating Medicare Advantage trends and higher medical costs. CEO Andrew Witty’s departure was announced, with Stephen Hemsley stepping in as his replacement. The firm also reaffirmed a Hold rating on UnitedHealth amid allegations of secret bonuses paid to nursing homes, adding to the uncertainty surrounding the company. SelectQuote, alongside Humana, faces similar allegations in the False Claims Act complaint, which has led to a significant drop in its stock price. These developments are being closely watched by investors and analysts alike.
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