HUM Humana, Inc.

Humana Inc. engages in the provision of health insurance services. The firm operates through the following segments: Retail, Group and Specialty and Healthcare Services.. The Retail segment consists of products sold on a retail basis to individuals including medical and supplemental benefit plans such as Medicare, and State-based Medicaid contracts. The Group and Specialty segment contains employer group fully-insured commercial medical products and specialty health insurance benefits marketed to individuals and groups, including dental, vision, military services and other supplemental health & voluntary insurance benefits. The Healthcare Services segment offer services such as pharmacy solutions, provider services, clinical care, predictive modeling and informatics services to other Humana businesses, as well as external health plan members, external health plans, and other employers. The company was founded by David A. Jones, Sr. and Wendell Cherry in 1961 and is headquartered in Louisville, KY.

Company profile

Ticker

HUM

Exchange

NYSE

Website

www.humana.com

CEO

Bruce Dale Broussard

Incorporated in

Delaware

Location

Kentucky

Fiscal year end

Dec 31

Sector

Health Services > Managed Health Care

Industry (SEC)

Hospital & Medical Service Plans

Unitedhealth • Cigna Holding • Anthem • Cigna • Centene • WellCare Health Plans • Molina Healthcare • DCP Holding • Trupanion • Advanzeon Solutions ...

SEC CIK

0000049071

Corporate docs

Articles of Incorporation & Bylaws

IRS number

610647538

HUM stock data

S&P 500

1M 1Y 2Y 5Y

Calendar

29 Apr 20

6 Jul 20

31 Dec 20

News

Company financial data Financial data

Chart HUM financial data

Quarter (USD)	Mar 20	Dec 19	Sep 19	Jun 19
Revenue	18.94B	16.3B	16.24B	16.25B
Net income	473M	512M	689M	940M
Diluted EPS	3.56	3.84	5.14	6.94
Net profit margin	2.50%	3.14%	4.24%	5.79%
Operating income	1.07B	362M	868M	1.12B
Net change in cash	2B	-1.47B	749M	901M
Cash on hand	6.05B	4.05B	5.53B	4.78B

Annual (USD)	Dec 19	Dec 18	Dec 17	Dec 16
Revenue	64.89B	56.91B	53.77B	54.38B
Net income	2.71B	1.68B	2.45B	614M
Diluted EPS	20.1	12.16	16.81	4.07
Net profit margin	4.17%	2.96%	4.55%	1.13%
Operating income	3.19B	3.1B	4.26B	1.74B
Net change in cash	1.71B	-1.7B	165M	1.31B
Cash on hand	4.05B	2.34B	4.04B	3.88B

Financial data from Humana earnings reports

Recent insider trades

HUM insider ownership history Insider history

Date	Owner	Security	Transaction	Code	10b5-1	$Price	#Shares	$Value	#Remaining
1 Jul 20	Susan M Diamond	Humana Common	Payment of exercise	Dispose F	No	390.385	97	37.87K	1,908
1 Jul 20	Susan M Diamond	Humana Common	Option exercise	Aquire M	No	0	290	0	2,005
1 Jul 20	Susan M Diamond	RSU Humana Common	Option exercise	Dispose M	No	0	290	0	582
30 Jun 20	McDonald William J.	RSU Humana Common	Grant	Aquire A	No	384.15	78	29.96K	10,328
30 Jun 20	Karen Katz	RSU Humana Common	Grant	Aquire A	No	384.15	78	29.96K	164
30 Jun 20	Hilzinger Kurt J	RSU Humana Common	Grant	Aquire A	No	384.15	235	90.28K	10,044
29 May 20	Peterson Marissa T	Humana Common	Sell	Dispose S	No	399.89	1,246	498.26K	1,229

Data from 3, 4 and 5 filings. Stock values as filed, not updated for current price.

Institutional ownership Q1 2020

HUM institutional ownership history Ownership history

93.0% owned by funds/institutions

13F holders	Current	Prev Q	Change
Total holders	772	795	-2.9%
Opened positions	102	149	-31.5%
Closed positions	125	86	+45.3%
Increased positions	240	231	+3.9%
Reduced positions	322	311	+3.5%

13F shares	Current	Prev Q	Change
Total value	306.74B	368.8B	-16.8%
Total shares	122.85M	124.33M	-1.2%
Total puts	1.47M	1.69M	-12.6%
Total calls	1.4M	1.26M	+10.6%
Total put/call ratio	1.1	1.3	-21.0%

Largest owners	Shares	Value	Change
BLK BlackRock	10.81M	$3.39B	-10.7%
Vanguard	10.51M	$3.3B	+3.1%
N Price T Rowe Associates	9.51M	$2.99B	+399.7%
Capital International Investors	8.35M	$2.62B	-16.8%
FMR	6.13M	$1.92B	-1.7%
STT State Street	5.82M	$1.83B	+0.7%
Capital World Investors	4.81M	$1.51B	-7.4%
Capital Research Global Investors	3.7M	$1.16B	-52.7%
Renaissance Technologies	3.53M	$1.11B	+19.6%
Wellington Management	2.22M	$696.58M	-9.2%

Largest transactions	Shares	Bought/sold	Change
N Price T Rowe Associates	9.51M	+7.61M	+399.7%
Capital Research Global Investors	3.7M	-4.12M	-52.7%
Capital International Investors	8.35M	-1.69M	-16.8%
Norges Bank	0	-1.3M	EXIT
BLK BlackRock	10.81M	-1.3M	-10.7%
Jennison Associates	1.26M	+1.05M	+507.7%
Boston Partners	804.3K	-733.49K	-47.7%
Glenview Capital Management	335.95K	-723.84K	-68.3%
Lone Pine Capital	2.16M	+691.3K	+46.9%
Marshall Wace North America	51.17K	-635.48K	-92.5%

Data from 13F filings. Stock values as filed, not updated for current price. Long positions only.

Financial report summary

Competition

Cigna Holding • Caremark Ulysses Holding • Unitedhealth • ABIOMED • Health Net • Pacificare Health Systems • Medco Health Solutions • Healthspring • DCP Holding • Champion Pain Care

Risks

Risks Relating to Our Business
If we fail to effectively implement our operational and strategic initiatives, including our Medicare initiatives and our state-based contracts strategy, our business may be materially adversely affected, which is of particular importance given the concentration of our revenues in these products. In addition, there can be no assurances that we will be successful in maintaining or improving our Star ratings in future years.
If we fail to properly maintain the integrity of our data, to strategically implement new information systems, or to protect our proprietary rights to our systems, our business may be materially adversely affected.
If we are unable to defend our information technology security systems against cybersecurity attacks or prevent other privacy or data security incidents that result in security breaches that disrupt our operations or in the unintended dissemination of sensitive personal information or proprietary or confidential information, we could be exposed to significant regulatory fines or penalties, liability or reputational damage, or experience a material adverse effect on our results of operations, financial position, and cash flows.
We are involved in various legal actions and governmental and internal investigations, any of which, if resolved unfavorably to us, could result in substantial monetary damages or changes in our business practices. Increased litigation and negative publicity could increase our cost of doing business.
As a government contractor, we are exposed to risks that may materially adversely affect our business or our willingness or ability to participate in government health care programs.
Our business activities are subject to substantial government regulation. New laws or regulations, or legislative, judicial, or regulatory changes in existing laws or regulations or their manner of application could increase our cost of doing business and may have a material adverse effect on our results of operations (including restricting revenue, enrollment and premium growth in certain products and market segments, restricting our ability to expand into new markets, increasing our medical and operating costs by, among other things, requiring a minimum benefit ratio on insured products, lowering our Medicare payment rates and increasing our expenses associated with assessments); our financial position (including our ability to maintain the value of our goodwill); and our cash flows.
Any failure by us to manage acquisitions, divestitures and other significant transactions successfully may have a material adverse effect on our results of operations, financial position, and cash flows.
If we fail to develop and maintain satisfactory relationships with the providers of care to our members, our business may be adversely affected.
Our pharmacy business is highly competitive and subjects us to regulations in addition to those we face with our core health benefits businesses.
If we do not continue to earn and retain purchase discounts and volume rebates from pharmaceutical manufacturers at current levels, our gross margins may decline.
Our ability to obtain funds from certain of our licensed subsidiaries is restricted by state insurance regulations.
Downgrades in our debt ratings, should they occur, may adversely affect our business, results of operations, and financial condition.
The securities and credit markets may experience volatility and disruption, which may adversely affect our business.

Management Discussion

the ability to enroll in multiple programs. The increase is driven by our improved process for identifying and enrolling members in the appropriate program at the right time, coupled with growth in Special Needs Plans, or SNP, membership.
The Health Care Reform Law enacted significant reforms to various aspects of the U.S. health insurance industry. Certain significant provisions of the Health Care Reform Law include, among others, mandated coverage requirements, mandated benefits and guarantee issuance associated with commercial medical insurance, rebates to policyholders based on minimum benefit ratios, adjustments to Medicare Advantage premiums, the establishment of federally facilitated or state-based exchanges coupled with programs designed to spread risk among insurers, and the introduction of plan designs based on set actuarial values. In addition, the Health Care Reform Law established insurance industry assessments, including an annual health insurance industry fee. The annual health insurance industry fee, which was suspended in 2019, but has resumed for calendar year 2020, is not deductible for income tax purposes and significantly increases our effective tax rate. We expect to pay the federal government $1.2 billion in September 2020 for this fee. Under current law, the health industry fee will be permanently repealed beginning in calendar year 2021.
It is reasonably possible that the Health Care Reform Law and related regulations, as well as other current or future legislative, judicial or regulatory changes, such as legislative and regulatory changes associated with COVID-19, including restrictions on our ability to manage our provider network or otherwise operate our business, or restrictions on profitability, including reviews by regulatory bodies that may compare our Medicare Advantage profitability to our non-Medicare Advantage business profitability, or compare the profitability of various products within our Medicare Advantage business, and require that they remain within certain ranges of each other, increases in member benefits or changes to member eligibility criteria without corresponding increases in premium payments to us, or increases in regulation of our prescription drug benefit businesses, in the aggregate may have a material adverse effect on our results of operations (including restricting revenue, enrollment and premium growth in certain products and market segments, restricting our ability to expand into new markets, increasing our medical and operating costs, further lowering our Medicare payment rates and increasing our expenses associated with assessments); our financial position (including our ability to maintain the value of our goodwill); and our cash flows.

Content analysis ?

Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability	H.S. junior Avg

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From filing 10-Q 2020 Q1