Humana (NYSE:HUM) Shares Gap Down – Should You Sell?

Humana Inc. (NYSE:HUM)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $181.30, but opened at $170.96. Humana shares last traded at $177.3490, with a volume of 2,276,172 shares changing hands.

Humana News Summary

Here are the key news stories impacting Humana this week:

• Positive Sentiment: CenterWell (Humana’s healthcare services unit) closed the acquisition of MaxHealth, adding a sizable Florida primary‑care network (~82 owned/affiliated clinics and >80,000 patients in value‑based programs) which expands Humana’s senior-focused, value‑based primary care footprint and accelerates revenue and membership growth in higher-value care. CenterWell Completes Acquisition of MaxHealth
• Positive Sentiment: Management signals more primary‑care deals may be coming (CEO remarks and media reports about a potential ~$1B strategic push), reinforcing the company’s strategy to grow value‑based care capacity — a long‑term growth catalyst if Humana can scale clinics and convert MA members to higher‑margin care. Humana CEO hints at upcoming primary care deal
• Neutral Sentiment: Jefferies cut its price target (from $310 to $235) but kept a Buy rating, reflecting disagreement among analysts on Humana’s growth vs. margin tradeoff — some firms still see upside despite lower near‑term earnings visibility. Jefferies price target change
• Negative Sentiment: Several major analysts materially lowered price targets and trimmed estimates (TD Cowen to $173 Hold; JPMorgan to $180 Neutral; Evercore, Cantor, Leerink also cut targets), reflecting concern that Medicare Advantage cost pressures, lower quality (STAR) ratings, and a cautious 2026 earnings guide will weigh on near‑term profitability. TD Cowen PT cut
• Negative Sentiment: Humana reported a fourth‑quarter loss and issued a cautious 2026 outlook (management flagged sharply lower near‑term earnings as Medicare Advantage membership surges but margins remain under pressure), which prompted analysts to slash forecasts and is the primary fundamental reason for downward pressure on the stock. Humana stock falls on disappointing earnings forecast

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on HUM. Robert W. Baird lowered their target price on Humana from $280.00 to $264.00 and set a “neutral” rating on the stock in a research note on Thursday, December 11th. KeyCorp restated a “sector weight” rating on shares of Humana in a research note on Friday, December 12th. TD Cowen dropped their price objective on shares of Humana from $260.00 to $173.00 and set a “hold” rating for the company in a research note on Friday. Deutsche Bank Aktiengesellschaft set a $180.00 price objective on shares of Humana and gave the company a “hold” rating in a report on Friday. Finally, The Goldman Sachs Group reduced their price target on Humana from $235.00 to $215.00 and set a “sell” rating on the stock in a research report on Monday, November 24th. Seven research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $239.46.

Humana Stock Performance

The company has a current ratio of 2.00, a quick ratio of 2.02 and a debt-to-equity ratio of 0.70. The company has a market cap of $22.12 billion, a P/E ratio of 18.73, a price-to-earnings-growth ratio of 1.95 and a beta of 0.44. The company has a 50 day moving average price of $246.13 and a 200-day moving average price of $261.18.

Humana (NYSE:HUM) last released its earnings results on Wednesday, February 11th. The insurance provider reported ($3.96) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($4.01) by $0.05. The firm had revenue of $32.64 billion for the quarter, compared to analysts’ expectations of $32.08 billion. Humana had a return on equity of 11.43% and a net margin of 0.92%.The business’s revenue for the quarter was up 11.3% on a year-over-year basis. During the same quarter in the previous year, the business posted ($2.16) earnings per share. Humana has set its FY 2026 guidance at 9.000-9.000 EPS. On average, equities analysts expect that Humana Inc. will post 16.47 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Humana

A number of institutional investors have recently modified their holdings of HUM. Montag A & Associates Inc. raised its position in shares of Humana by 1,880.0% in the 4th quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider’s stock worth $25,000 after acquiring an additional 94 shares in the last quarter. CoreCap Advisors LLC grew its holdings in Humana by 54.4% in the fourth quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider’s stock worth $27,000 after purchasing an additional 37 shares during the period. Fideuram Asset Management Ireland dac bought a new position in shares of Humana during the 4th quarter worth about $27,000. Rosenberg Matthew Hamilton raised its stake in Humana by 136.0% during the 4th quarter. Rosenberg Matthew Hamilton now owns 118 shares of the insurance provider’s stock worth $30,000 after buying an additional 68 shares during the period. Finally, Elevation Point Wealth Partners LLC acquired a new stake in Humana in the second quarter valued at approximately $32,000. 92.38% of the stock is owned by institutional investors.

Humana Company Profile

Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.

In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.