Wavering Stock: Humana Inc. (NYSE: HUM)

On 24 Dec 2019, Humana Inc. (NYSE: HUM) stock observed trading -1.07% off 52-week high price. On the other end, the stock has been noted 63.24% away from low price over the last 52-weeks. The stock disclosed a move of 14.06% away from 50 day moving average and 31.05% away from 200 day moving average. Moving closer, we can see that shares have been trading 4.96% off 20-day moving average. It has market cap of $49107.46M and dividend yield of 0.60%.

Humana Inc. (HUM) recently stated consolidated pretax income and diluted earnings per ordinary share (EPS) for the quarter ended September 30, 2019 (3Q19) versus the quarter ended September 30, 2018 (3Q18) and for the nine months ended September 30, 2019 (YTD 2019) versus the nine months ended September 30, 2018 (YTD 2018) as follows:

Summary of 3Q19 Results

GAAP and Adjusted pretax income and EPS results for both the quarter and year-to-date (YTD) exceeded management’s expectations, fueled by continued strong performance in the company’s Medicare Advantage business. As predictable, the year over year comparison of quarterly results was negatively influenced by weekday seasonality.

Year-over-year GAAP pretax income and EPS comparisons, for both the quarter and YTD, were favorably influenced by the solid results in the company’s Medicare Advantage business and Healthcare Services section, as well as by the before implemented productivity initiatives that led to important operating cost efficiencies in 2019. These year-over-year favorable impacts were partially offset by the planned investments in the company’s integrated care delivery model; the impact of higher compensation accruals for the Yearly Incentive Plan (AIP) provided to employees across all levels of the company; lower Group and Specialty section earnings; and the impact of workforce optimization.

The year-over-year changes in GAAP and Adjusted EPS for 3Q19 and YTD 2019 were further positively influenced by the suspension of the health insurance industry fee (HIF) in 2019, as well as a lower number of shares used to compute EPS, primarily reflective of share repurchases.

Please refer to the tables above and the consolidated and section highlight sections in the detailed earnings release for additional discussion of the factors impacting year-over-year results. In addition, below is a summary of key consolidated and section statistics comparing 3Q19 to 3Q18 and YTD 2019 to YTD 2018.

2019 Earnings Guidance

Humana recently raised its GAAP and Adjusted EPS guidance for the year ended December 31, 2019 (FY19). The company now expects FY19 GAAP EPS guidance to be about $18.32, while Adjusted EPS is predictable to be about $17.75.

A reconciliation of GAAP to Adjusted EPS for the company’s FY19 projections, as well as comparable numbers for the year ended December 31, 2018 (FY18), is shown below for comparison.

The USA based company Humana Inc. moved with change of 0.16% to $368.34 with the total traded volume of 172499 shares in recent session versus to an average volume of 1034.8K. HUM’s shares are at 37.60% for the quarter and driving a 34.75% return over the course of the past year and is now at 28.57% since this point in 2018.

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