Humana (NYSE:HUM) Shares Gap Down – What’s Next?

Humana Inc. (NYSE:HUM) shares 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 trading hands.

Key Headlines Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Q4 results slightly beat expectations: Humana reported adjusted EPS of ($3.96) vs. consensus ($4.01) and revenue of $32.64B (up ~11% YoY), which shows underlying top‑line growth and a small EPS upside. Humana (HUM) Reports Q4 Loss, Tops Revenue Estimates
• Neutral Sentiment: Company released the full earnings release and conference materials; the transcript and filings provide more detail on cost drivers and guidance assumptions for investors who want to dig into management commentary. Humana Reports Fourth Quarter 2025 Financial Results; Provides Full Year 2026 Financial Guidance
• Neutral Sentiment: Earnings call transcript is available for investors to review management’s commentary on medical cost trends and plan-quality actions. Humana (HUM) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Weak FY‑2026 guidance: Humana guided EPS to 9.00 for FY‑2026 versus Street estimates near ~12.03, a material shortfall that directly pressures valuation and near‑term upside. Humana forecasts 2026 profit below estimates
• Negative Sentiment: Medicare Advantage headwinds and rising medical costs: Management cited higher medical costs and lower plan quality ratings exposure; analysts and press highlight a wider GAAP loss and margin pressure in the core MA business. Humana Loss Widens Amid Surging Medical Costs
• Negative Sentiment: Policy risk: Shares have been sensitive to federal moves on Medicare Advantage rates (government plan to keep 2027 MA rates nearly flat has driven outsized selling pressure). Humana Earnings Reveal Narrower-Than-Expected Loss. Why the Stock Is Falling.
• Negative Sentiment: Analyst caution — coverage notes and consensus revisions have turned more conservative after the guidance and MA headwinds, which limits near‑term upside. Are Wall Street Analysts Predicting Humana Stock Will Climb or Sink?

Wall Street Analyst Weigh In

A number of research firms have weighed in on HUM. Wells Fargo & Company cut shares of Humana from an “overweight” rating to a “cautious” rating in a report on Wednesday, January 7th. Zacks Research lowered shares of Humana from a “hold” rating to a “strong sell” rating in a research note on Thursday, January 1st. Truist Financial reduced their price target on shares of Humana from $300.00 to $285.00 and set a “hold” rating for the company in a research report on Monday, November 10th. The Goldman Sachs Group dropped their price objective on Humana from $235.00 to $215.00 and set a “sell” rating on the stock in a report on Monday, November 24th. Finally, KeyCorp reiterated a “sector weight” rating on shares of Humana in a research report on Friday, December 12th. Eight equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $293.21.

Humana Trading Down 2.0%

The company has a 50 day simple moving average of $249.25 and a 200 day simple moving average of $262.36. The company has a current ratio of 2.02, a quick ratio of 2.02 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $21.36 billion, a PE ratio of 16.64, a P/E/G ratio of 1.57 and a beta of 0.44.

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. Humana had a return on equity of 12.86% and a net margin of 1.02%.The business had revenue of $32.64 billion for the quarter, compared to analyst estimates of $32.08 billion. During the same quarter in the previous year, the company posted ($2.16) earnings per share. The company’s revenue for the quarter was up 11.3% compared to the same quarter last year. Humana has set its FY 2026 guidance at 9.000-9.000 EPS. Analysts predict that Humana Inc. will post 16.47 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in HUM. Montag A & Associates Inc. lifted its position in Humana by 1,880.0% in the fourth quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider’s stock valued at $25,000 after purchasing an additional 94 shares during the period. CoreCap Advisors LLC increased its position in Humana by 54.4% during the 4th 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 purchased a new position in shares of Humana during the 4th quarter worth approximately $27,000. Rosenberg Matthew Hamilton lifted its holdings in shares of Humana by 136.0% in the 4th quarter. Rosenberg Matthew Hamilton now owns 118 shares of the insurance provider’s stock valued at $30,000 after buying an additional 68 shares during the period. Finally, Elevation Point Wealth Partners LLC purchased a new stake in shares of Humana in the second quarter valued at approximately $32,000. 92.38% of the stock is currently owned by institutional investors and hedge funds.

About Humana

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.