Humana (HUM) Offering Possible 47.06% Return Over the Next 22 Calendar Days

This post was originally published on this site

Humana’s most recent trend suggests a bullish bias. One trading opportunity on Humana is a Bull Put Spread using a strike $445.00 short put and a strike $440.00 long put offers a potential 47.06% return on risk over the next 22 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $445.00 by expiration. The full premium credit of $1.60 would be kept by the premium seller. The risk of $3.40 would be incurred if the stock dropped below the $440.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Humana is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Humana is bullish.

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Humana

Humana, Inc. to Host Earnings Call
Wed, 28 Apr 2021 11:15:00 +0000
NEW YORK, NY / ACCESSWIRE / April 28, 2021 / Humana, Inc. (NYSE:HUM) will be discussing their earnings results in their 2021 First Quarter Earnings call to be held on April 28, 2021 at 9:00 AM Eastern Time.

UPDATE 1-Health insurer Humana beats profit estimates on Medicare Advantage strength
Wed, 28 Apr 2021 10:57:10 +0000
Humana Inc on Wednesday beat Wall Street estimates for quarterly profit, benefiting from higher sales of its Medicare advantage plans for the elderly and people with disabilities. Humana in February said it expected a positive impact of $1.32 billion to $2.04 billion from depressed non-COVID utilization in its Medicare Advantage health plans. Sales from the company’s retail unit, which includes its Medicare plans, rose 11% to $18.65 billion in the quarter ended March, as it added more members to its individual Medicare Advantage plans and on higher premium rates.

Humana beats profit and revenue expectations, affirms full-year outlook
Wed, 28 Apr 2021 10:41:00 +0000
Humana Inc. reported Wednesday first-quarter profit and revenue that rose above expectations, boosted by strong individual Medicare Advantage and state-based contract membership growth. The health insurance services company’s stock was still inactive in premarket trading. Net income rose to $1.04 billion, or $6.39 a share, from $717 million, or $3.56 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share grew to $7.67 from $5.40, and beat the FactSet consensus of $7.07. Revenue increased 9.2% to $20.67 billion, above the FactSet consensus of $20.49 billion. The company affirmed its 2021 guidance ranges for adjusted EPS of $21.25 to $21.75 and its individual Medicare Advantage membership growth of 425,000 to 475,000. The FactSet consensus for 2021 EPS is $21.54. The stock has gained 9.4% year to date, while the S&P 500 has advanced 11.5%.

Humana Reports First Quarter 2021 Financial Results; Reaffirms Full Year 2021 Adjusted EPS Financial Guidance
Wed, 28 Apr 2021 10:30:00 +0000
Humana Inc. (NYSE: HUM) today reported consolidated pretax income and diluted earnings per common share for the quarter ended March 31, 2021 (1Q21) versus the quarter ended March 31, 2020 (1Q20) as noted in the tables below.

Humana Buys Out Partner TPG in $8.1 Billion Home-Care Unit
Tue, 27 Apr 2021 21:49:01 +0000
(Bloomberg) — Humana Inc. has agreed to buy the slice of Kindred at Home that it doesn’t already own from two private-equity partners, in a deal that gives the home-health business an enterprise value of $8.1 billion.The health insurer will acquire the 60% of Kindred currently held by TPG Capital and Welsh, Carson, Anderson & Stowe, according to a statement issued on Tuesday. The valuation includes the $2.4 billion equity stake in Kindred that Humana now holds.Kindred at Home has locations in 40 states and serves more than 550,000 patients a year with home-health and hospice care.Humana will fund the $5.7 billion transaction with a combination of cash and debt, the company said. The deal isn’t expected to have a material effect on earnings in 2021, and will “provide modest additional financial flexibility for 2022,” according to the company. Humana is scheduled to post first-quarter results early Wednesday.The private-equity firms and Humana bought Kindred Healthcare in 2017 and split the company into two pieces. The investment firms kept the long-term acute care and rehabilitation facilities, while Humana took a minority stake in the home-care assets, Kindred at Home. At the time, Humana said the implied enterprise value of the business was $3.15 billion.Traditional health insurers have been moving deeper into the business of taking care of patients. Humana rival Cigna Corp. purchased telehealth provider MDLive this year. UnitedHealth Group Inc., the largest U.S. insurer, has assembled a giant care-delivery arm in its Optum division with more than 53,000 physicians.Humana is a top seller of private Medicare Advantage plans, in which the company receives set premiums from the U.S. government for taking care of elderly members.“We continue to invest in assets that allow Humana to better manage the holistic needs of our members and patients by expanding care in the home,” Humana Chief Executive Officer Bruce Broussard said in the statement.Humana recently announced a new health-services brand called CenterWell. Kindred at Home will be integrated with Humana’s existing home-care business and re-branded CenterWell Home Health, the company said.Humana said the Kindred at Home hospice and community-care assets are included in the transaction, but the company plans to hold only a minority interest in that part of the business. It’s exploring a public listing or another transaction, according to the release. Kindred at Home CEO David Causby will lead that “future independent company,” Humana said.The acquisition is expected to close in the third quarter.(Updates with additional details throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Be Sociable, Share!

Related Posts