Humana | HUM | Long at $220.00Humana NYSE:HUM took a nosedive to "crash" levels (based on my selected simple moving averages (SMA)) this morning after a lower-performance rating for a widely used Medicare insurance plan is expected to hurt enrollments for 2025 (and will potentially hit the health insurer's revenue and bonus payments in 2026). However, I view this massive drop as an opportunity for an initial long entry for a great value stock. The company is strong, highly rated among patients, and solid fundamentals despite the anticipated earnings drop. From a technical analysis perspective, it touched my "crash" SMA, but may dip further after a dead cat bounce to the $190s in the coming days or weeks. But, predicting true bottom is a fool's game, so at $220.00, NYSE:HUM is in a personal buy zone for an initial long entry.
Target #1 = $250.00
Target #2 = $275.00
Target #3 = $314.00
Target #4 = $340.00
HUM
HUM Slide 14.67% Amidst Increase in Medicare Advantage PlansHumana's ( NYSE:HUM ) stock has experienced a significant decline of almost 15% in early trading on Tuesday, following the Centers for Medicare & Medicaid Services (CMS) announcement of a 3.7% increase in federal payments to Medicare Advantage plans. This increase matches the percentage increase proposed in January, leading to disappointment among investors and concerns regarding health insurers' profit margins, given the rising costs of medical care. The CMS has projected that the federal government will contribute between $500 billion and $600 billion in Medicare Advantage payments to private health plans in 2025, to maintain the stability of the program and ensure that payments are up-to-date and accurate.
Humana's CFO, Susan Diamond, had previously informed investors that the health insurer would fall short of its upper earnings-per-share growth target without a more significant increase in payments. The payment revision, which excludes the estimated growth in patient risk scores, represents a 0.16% decline, leading to disappointment among investors and health insurers who had lobbied for a higher increase. Research from JPMorgan cited by Bloomberg revealed that there has only been one instance in the past decade where Medical Advantage plan final rates have not increased from the government's initial rate proposals.
Other health insurers, including CVS Health, UnitedHealth Group, and Centene, have also experienced declines following the news, losing 5.9%, 4.5%, and 2.3%, respectively, in after-hours trading. However, Humana has been hit the hardest, with the stock falling 14.65% to $299.70 in early morning trading on Tuesday, putting it at levels not seen since the early days of the pandemic in March 2020.
Technical Outlook
With the Relative Strength Index (RSI) at 20 a break below the ceiling of the falling wedge is imminent thereby forming a new support at that level and spike after any major fundamentals. Allowing buyers to stack at that level.
Investors should keep an eye on a key horizontal trendline that stretches back to the stock's April 2020 pandemic recovery, an area that may attract buying interest around $318, amid Tuesday's expected news-driven sell-off to a multi-year low.
HUMANA swing alertHumana has been trading into key long term support.
This stock has been under severe pressure and is starting to appear to be carving out a potential base.
it seems that 1 more flush in this name may prove to be a swing tradable entry on the long side.
The weekly Death cross formation is close to occurring. This is no doubt a bearish long term signal but often this proves to be a buyable short term trade.
UNH, the dominate health insurance market leader LONGAs shown on the 4H chart, UNH based on a long-term VWAP band setup, it as fiar value for the
first time since September. This dip is significant as price fell from a head and shoulders pattern
of three months duration. The candles in the past couple of days show the reversal at the
mean VWAP support. I have retrieved 60% out of a near term expiration call option. Some may
say this is simply a death cross on a pair of moving averages with a bit of correction on the
overall downtrend. I understand that point of view. Notwithstanding that perspective,
healthcare is expected to be an outperforming sector in 2024. UNH is on sale. As a healthcare
provider, it has paid me large sums in the historical past. I will take trades as described
in the text box on the chart. I believe buying out of the money and at a discount will be
a good strategy for this megacap moving forward.
Humana's Stock Plunges But shows Signs of a Reverse Trend
Humana Inc., ( NYSE:HUM ) the second-largest Medicare Advantage company in the U.S., has sent shockwaves through the health insurance sector by revising its earnings guidance for 2025 and projecting 2024 profits well below analysts' expectations. The stock plummeted as much as 15%, marking the most significant intraday drop since June. This unexpected development has ignited concerns about the profitability of private Medicare plans and their potential impact on seniors' healthcare costs.
The Medicare Advantage Dilemma:
Humana's grim outlook stems from challenges faced by private Medicare plans, which have been a significant source of growth for health insurers in recent years. Rising medical costs are forcing Humana ( NYSE:HUM ) to consider raising prices and reducing benefits to maintain profit margins. Executives revealed on a conference call that this move may trigger a broader industry repricing of plans in the upcoming year, potentially signaling the end of the Medicare Advantage boom.
Industry-Wide Ripple Effect:
Humana's forecast has not only impacted its own stock but has also led to a sector-wide sell-off. Competitors such as UnitedHealth Group Inc., Cigna Group, CVS Health Corp., and Centene Corp. experienced substantial declines in their stock prices. The reasons behind the surge in medical costs vary among insurers, adding uncertainty to the already turbulent sector.
Regulatory Changes and Emerging Trends:
Several factors contribute to the challenging landscape for health insurers. The U.S. government's proposed changes to payment rates and plans to recoup past overpayments are colliding with an increase in medical costs as patients resume deferred care from the pandemic. These changes are being phased in over the next three years, creating additional pressure on insurers.
Humana's Long-Term Prospects:
The revised earnings guidance suggests a significant setback for Humana, as the projected adjusted earnings for 2024 are expected to be around $16 per share, a level not seen since 2018. Analysts express surprise and skepticism about the company's growth plans, with some doubting the feasibility of achieving a $6 to $10 per share growth in 2025.
Market Reaction and Investor Concerns:
Humana's dismal performance has ignited concerns among investors about the broader health insurance industry. Analysts are questioning whether the company can return to its long-term multiple and express concerns about slowing demographic trends in the 65+ market, which are expected to moderate in the second half of the 2020s.
Conclusion:
Humana's unexpected downturn serves as a stark reminder of the challenges facing health insurers, particularly those heavily invested in Medicare Advantage plans. The industry is at a crossroads, navigating regulatory changes, surging medical costs, and an uncertain economic landscape. Investors will be closely watching how competitors respond to these challenges and whether the Medicare Advantage boom is indeed coming to an end.
Humana to find buyers at previous support?Humana Inc - 30d expiry - We look to Buy at 480.48 (stop at 468.48)
The primary trend remains bullish.
Bespoke support is located at 480.
Preferred trade is to buy on dips.
A break of the recent high at 503.52 should result in a further move higher.
We look to buy dips.
478.40 has been pivotal.
Our profit targets will be 510.48 and 518.48
Resistance: 503.52 / 510.00 / 515.00
Support: 486.60 / 479.35 / 470.00
Please be advised that the in formation presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group
Humana to find buyers at previous support?Humana Inc - 30d expiry - We look to Buy at 481.11 (stop at 468.38)
Price action continued to range between key support & resistance (480 - 515) although we expect a break of this range soon.
The primary trend remains bullish.
We look to buy dips.
Short term momentum is bearish.
We look for a temporary move lower.
Our profit targets will be 512.88 and 518.88
Resistance: 500 / 510 / 515
Support: 495 / 490 / 480
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
Humana ranging between key support and resistance.Humana Inc - 30d expiry - We look to Buy at 481.11 (stop at 468.38)
Price action continued to range between key support & resistance (480 - 515) although we expect a break of this range soon.
The primary trend remains bullish.
We look to buy dips.
We look for a temporary move lower.
Expect trading to remain mixed and volatile.
Our profit targets will be 512.88 and 518.88
Resistance: 514 / 515 / 528
Support: 500 / 490 / 480
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
10/23/22 HUMHumana Inc. ( NYSE:HUM )
Sector: Health Services (Managed Health Care)
Market Capitalization: 64.611B
Current Price: $510.54
Breakout price trigger: $515.20
Buy Zone (Top/Bottom Range): $496.45-$473.95
Price Target: $562.30-$568.90
Estimated Duration to Target: 147-156d
Contract of Interest: $HUM 1/20/23 520c
Trade price as of publish date: $26.20/contract
HUM: Test previous lows?Humana Inc
Short Term - We look to Sell a break of 480.38 (stop at 489.09)
Short term momentum is bearish. Daily/Weekly Ichimoku Cloud resistance is seen at 488. Further downside is expected. A break of 480.00 is needed to confirm follow through negative momentum.
Our profit targets will be 455.29 and 440.00
Resistance: 500.00 / 520.00 / 580.00
Support: 480.00 / 450.00 / 400.00
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’) . Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
$HUM Humana LT Chart - LEAP OptionsHumana fairly rangebound for the last six months. Tested ~$470 key resistance level six times unsuccessfully. Monitor for a breakthrough and close above this level. Once this occurs we could see an overdue strong move to the $600 area by 1H of 2024.
Long Term Target: $580-$615 range by 1H '24
I plan to play this using LEAP options. I'm looking at the $450 and $500 Jan'24 calls. If you're looking to limit risk and capital outlay, I would consider a vertical call spread buying either the $450 or $500 call and selling the $600.
Note: This is NOT investment advice. This is opinion only.
Humanscape 1h longSetup: HUM has break its previous local high, setting a new uptrend. TP will at the daily high.
Entry: 0.343825
TP: 0.39
SL: Trail using ATR SL bands of 3.1( 0.32 currently )
ASX:HUM back on my radars with potential good mood humm🎁🙌🎁ASX:HUM has been in a bear market for last few months after hitting the 1.36$ apogee, it plummeted to the abyss losing almost 30% of the recent high value. But there are signs hidden into the charts that shows it may be ready for another explosive move to the upside. Lets dive right to the technical analysis.
This stock has managed to extricate itself from the range 0.950 to 1.025$ which in my opinion was rather bearish than bullish and since then it has shown sign of strength, where it is attempting to break the 1.1$ levels. Escaping that range was followed by high volume as you can see on the chart.
The stock is above both 50MA and 200MA and its PSAR is on the bullish side. Also looking at the chart pattern from early April 2021, it looks like a cup without a handle, and I am looking for price to break above the 1.1$ to scale my position.
On the target side, first target is 1.16$ which corresponds to the golden fib level of the retracement from recent highs to recent lows. After that I will have my eyes to the 1.2$
I will keep you posted of any change on this stock and if any weakness is found I will let you know.
In meantime, as a service request from you, please share these TA charts with your friends and tell them to follow me. I am working on many more charts to share with you not only in stocks but also in crypto. Stay in touch.
XTF.