Humana Inc. (HUM) is a major health-insurance and managed-care company that offers a broad range of medical and specialty insurance products across the United States. Headquartered in Louisville, Kentucky, Humana operates through two primary business segments: Insurance and CenterWell, providing services such as Medicare and Medicaid plans, supplemental benefit plans, pharmacy benefit management, senior-centered primary-care services, home health, hospice, and more. The market cap of Humana is around $30.9 billion.
Companies valued at $10 billion or more are generally tagged as “large-cap” stocks, and Humana fits this criterion perfectly as the company distinguishes itself as one of the largest health insurance providers. It is particularly strong in the Medicare Advantage market and has a significant national footprint.
However, HUM is trading 18.5% below its 52-week high of $315.35, which it hit on Sept. 5. The stock has declined 17.7% over the past three months, lagging behind the broader SPDR S&P Health Care Services ETF (XHS), which has gained 9.1% over the same period.
In the longer term, HUM is up 1.3% on a YTD basis, significantly lagging behind XHS’s 19.7% gains. The stock has declined 11.8% over the past 52 weeks, considerably underperforming XHS’s 11.2% returns over the same time frame.
To confirm the bearish price trend, HUM has largely traded below the 200-day moving average over the past year, except for some periods of trading above the line in recent months. The stock is trading well below the 50-day and 200-day moving averages since the beginning of last month.
HUM has demonstrated a weak performance primarily due to ongoing challenges in its Medicare Advantage business. The most significant factor was a substantial downgrade in the quality ratings (Star Ratings) for several of its major MA plans. Additionally, the company has faced higher-than-anticipated medical costs (evident in a rising benefit ratio), which has pressured profit margins.
For Q3 2025 (reported on Nov. 5), while sales rose 11.1% year-over-year (YoY) to $32.7 billion, profits weakened as rising medical utilization pushed the adjusted benefit ratio up to 91.1%. Non-GAAP EPS fell 22.1% YoY to $3.24. Humana also continues to face Medicare Advantage pressures, with expected membership losses of 425K for the year. The company reaffirmed its 2025 benefit ratio and adjusted EPS guidance of $17, but its lowered GAAP EPS outlook to $12.26. The stock has plunged 6% on Nov. 5 and 5.2% on the following day.
