What Happened?
Shares of health insurance company Humana (NYSE: HUM) jumped 11.9% in the afternoon session after the stock continued to rally as the company provided a positive update on its Medicare Advantage "star" ratings for its 2026 plans.
The company disclosed that while about 20% of its Medicare Advantage members were in plans rated 4 stars or higher, the percentage of members enrolled in the top-tier 4.5-star plans jumped to 14% for 2026. This marked a significant increase from just 3% in 2025. Higher star ratings are important as they can lead to bonus payments from the government and are a key factor for seniors choosing a plan. Adding to the good news, Humana also reaffirmed its full-year earnings guidance for 2025, which indicated confidence in its financial outlook. The update was met with some mixed views from analysts, but the positive ratings news appeared to be the main driver for the stock's rise.
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What Is The Market Telling Us
Humana’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Humana and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 6.4% on the news that the company provided a positive update on its Medicare star ratings and affirmed its full-year earnings guidance.
Humana is up 12.1% since the beginning of the year, but at $283.16 per share, it is still trading 9.2% below its 52-week high of $312 from September 2025. Investors who bought $1,000 worth of Humana’s shares 5 years ago would now be looking at an investment worth $674.80.
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