Humana carries four consecutive earnings beats and 24% revenue growth, but severe operating margin deterioration has triggered value-trap flags, the stock trades above its near-term resistance level with an unfavorable risk/reward, and an unresolved legal disclosure adds a layer of uncertainty—leaving the setup unattractive for new exposure until the fundamental picture clarifies.
Thesis pillars
- Severe Margin Deterioration Value Trap↓Deteriorating
- Consistent Earnings Beat Streak→Stable
- Above Resistance Unfavorable Risk Reward→Stable
- +1 more pillar — see the Why tab for full reasoning
Humana Inc. (HUM) Stock Analysis
Healthcare · Healthcare Plans
Sell if holding. Engine safety override at $389.32: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Below-average business quality; Negative price momentum.
Humana provides Medicare Advantage health plans, Medicaid managed care, and CenterWell primary care and pharmacy services, with Medicare representing 82.6% of Insurance segment premiums. In 2025, the company served approximately 15 million medical plan members; 83% of total... Read more
Sell if holding. Engine safety override at $389.32: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.1/10, moderate confidence.
Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 4d<=7d. Suitability: moderate.
About Humana Inc.
About Humana Inc.
Humana served approximately 15 million medical plan members at December 31, 2025, generating $123.8 billion in Insurance segment premiums and services revenue. Individual Medicare Advantage contributed $90.4 billion, or 70.3% of consolidated premiums and services revenue, while Total Medicare reached 82.6%. The company's CenterWell segment operated 350 primary care clinics and CenterWell Home Health across 37 states.
Humana earns revenue almost entirely from per-member-per-month payments from CMS for Medicare Advantage and Part D plans, supplemented by state Medicaid managed care contracts in Florida, Kentucky, Illinois, Indiana, Louisiana, Ohio, Oklahoma, South Carolina, Virginia, and Wisconsin. The 10-K discloses that approximately 93% of total premiums and services revenue came from federal and state government health care programs in 2025. Premium rates are set annually through CMS bid submissions and adjusted via a risk-adjustment model that pays more where member health status indicates higher expected costs — the company flags that inaccuracies in provider coding submitted to CMS expose it to Risk-Adjustment Data Validation audits. CenterWell's 350 primary care clinics and CenterWell Home Health generate additional revenue from external third-party payer and Medicare Advantage relationships. The company competes for Medicare enrollment during the annual October 15–December 7 enrollment window against large national insurers.
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Florida concentrates 14% of consolidated premiums and services revenue in a single CMS contract cluster covering approximately 1.0 million individual Medicare Advantage members, a loss of which the 10-K characterizes as potentially material to results. Separately, Humana's Medicare Advantage plans experienced a significant decline in 4-star or higher Star Ratings for 2025, which the company has challenged through litigation. If that lawsuit fails, reduced quality bonus payments from CMS could weigh on 2026 revenues and trigger further membership attrition at the next annual enrollment period.
See also: Healthcare · Healthcare Plans
From Humana Inc.'s most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-07-25Recent Developments — Humana Inc.
Latest news
- NEWS 10 Health Care Stocks With Whale Alerts In Today’s Session — benzinga Jul 21, 2026 neutral
- NEWS 2.6 Million People Lost Their Medicare Advantage Plan This Year: Here's How To Avoid Being Caught Off Guard For 2027 — benzinga Jul 20, 2026 neutral
- NEWS 4 Health Care Stocks Whale Activity In Today’s Session — benzinga Jul 17, 2026 neutral
- NEWS UnitedHealth Rally Sparks Bullish Case for Healthcare ETFs Despite Medicare Advantage Losses — benzinga Jul 16, 2026 positive
- NEWS Medicare's $50 Weight-Loss Drug Window Opens In July: What Smart Enrollees Do Before 2027 — benzinga Jul 16, 2026 neutral
Generated 2026-07-25T20:17:26Z.
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $389.32: Quality below floor (4.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $362.07. Score 5.1/10, moderate confidence.
Take-profit target: $420.30 (-19.6% upside). Prior stop was $362.07. Stop-loss: $362.07.
Target reached (-19.6% upside); Quality below floor (4.0 < 4.0).
Humana Inc. trades at a P/E of 41.5 (forward 24.3). TrendMatrix value score: 4.9/10. Verdict: Sell.
33 analysts cover HUM with a consensus score of 3.5/5. Average price target: $348.
What does Humana Inc. do?Humana provides Medicare Advantage health plans, Medicaid managed care, and CenterWell primary care and pharmacy...
Humana provides Medicare Advantage health plans, Medicaid managed care, and CenterWell primary care and pharmacy services, with Medicare representing 82.6% of Insurance segment premiums. In 2025, the company served approximately 15 million medical plan members; 83% of total premiums and services revenue came from federal government contracts. Florida alone accounts for 14% of consolidated premiums via individual Medicare Advantage.