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Humana Inc HUM

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Morningstar’s Analysis

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1-Star Price

PREMIUM

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PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Humana Delivers Strong Q1 and Plans to Buy Remaining Stake in Kindred at Home

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Narrow-moat Humana delivered first-quarter results that were above expectations, but the bigger news is that the company plans to acquire the 60% of Kindred at Home that it doesn't already own. While we view both of these developments as mildly positive, we do not expect to materially change our fair value estimate at first glance. The shares remain about fairly valued.

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Company Profile

Business Description

Humana is one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Humana offers employer-based plans primarily for small businesses along with specialty insurance offerings such as dental, vision, and life. Beyond medical insurance, the company provides other healthcare services, including primary-care services and pharmacy benefit management.

Contact
500 West Main Street
Louisville, KY, 40202
T +1 502 580-1000
Sector Healthcare
Industry Healthcare Plans
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Aggressive Growth
Employees 48,700

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