HUM
Humana Inc.
Healthcare
09/17/2014
Presented
| Date | 08/31/2014 |
| Price | $128.26 |
| Market Cap | $19.80B |
| Ent Value | $21.08B |
| P/E Ratio | 21.74x |
| Book Value | $64.48 |
| Div Yield | 0.7% |
| Shares O/S | 154.26M |
| Ave Daily Vol | 1,050,000 |
| Short Int | 2.71% |
Current
| Price | $257.60 |
| Market Cap | $31.02B |
| Humana Inc., a health care company, offers a range of insurance products, and health and wellness services that incorporate an integrated approach to lifelong well-being. The company operates in Retail, Employer Group, Healthcare Services, and Other Businesses segments. The Retail segment provides Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products directly to individuals. This segment has contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition program and state-based Medicaid businesses. The Employer Group segment provides Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and voluntary benefit products, as well as administrative services only products, and health and productivity solutions directly to employer groups. The Healthcare Services segment offers pharmacy, provider services, home based services, integrated behavioral health services, and predictive modeling and informatics services to its health plan members, as well as third parties. The Other Businesses segment consists of military services, such as TRICARE South Region contract; Puerto Rico Medicaid; and closed-block long-term care insurance policies. As of December 31, 2013, Humana Inc. had approximately 12.0 million members enrolled in medical benefit plans; and approximately 7.8 million members enrolled in specialty products. The company was founded in 1961 and is headquartered in Louisville, Kentucky. |
Publicly traded companies mentioned herein: Centene (CNC), Humana Inc (HUM)
Highlights
Over the past two years, shares of Humana (HUM) have risen over 100%. The stock is presently trading ~$128, just off of its all time high. The presenter believes the trend will continue, and recently added to his long position in the stock. He sees the potential for a shift in coverage in favor of Medicare Advantage (MA), which plays directly to HUM’s strengths. In addition, there is optionality associated with capital allocation and the potential for management to leverage the PBM business in a strategic manner.
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