Humana Inc Stock Fair Value – Humana-Backed Gentiva to Expand Hospice and Home-Care Services with $710M Acquisition of ProMedica Assets.

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Humana Inc Stock Fair Value – Humana ($NYSE:HUM), the largest US-based healthcare provider, has announced a major deal that will see its subsidiary, Gentiva, purchase ProMedica’s hospice and home-care assets for a reported $710M. The acquisition is backed by leading private equity firm Clayton, Dubilier & Rice, as well as Humana. The acquisition will provide Gentiva with a larger platform for treating patients and providing home care services. It is expected to help Humana enhance its ability to service its members and meet their changing needs.

In addition, Clayton, Dubilier & Rice will receive an equity stake in Gentiva and will support the company’s expansion. The acquisition represents a major move forward for Gentiva and Humana, with the latter gaining a stronger foothold in the home care and hospice sector. It follows several other recent acquisitions in the healthcare sector, demonstrating how Humana is looking to expand its presence in the rapidly changing healthcare landscape. With the help of Gentiva and Clayton, Dubilier & Rice, it appears as though Humana is in a strong position to capitalize on this momentum and provide even more comprehensive home care and hospice services in the future.

Price History

On Monday, Humana-backed Gentiva announced their intention to expand their hospice and home-care services with a $710M acquisition of ProMedica Assets. This news comes at a time where Humana and other companies in the healthcare sector have been receiving mostly negative news coverage. Despite the news, HUMANA INC stock opened at $509.6 and closed at $506.5, down by 0.2% from prior closing price of 507.4. This suggests that the news of the acquisition did not have a major impact on the stock price of HUMANA INC. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Humana Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Humana Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Humana Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Humana Inc are shown below. More…

Analysis – Humana Inc Stock Fair Value

At GoodWhale, we have conducted an in-depth analysis of HUMANA INC‘s wellbeing. Through this analysis, we have determined the fair value of a HUMANA INC share to be around $503.8. This valuation was calculated using our proprietary Valuation Line, which takes into account a variety of factors to determine the fair market value of a stock. Looking at current market prices, HUMANA INC’s stock is currently trading at a fair price of $506.5. This suggests that the stock is being fairly valued and offers investors a good entry point. More…

Peers

In the ever-changing world of healthcare, Humana Inc. has been a leader in providing quality services to its customers. However, the company faces stiff competition from the likes of UnitedHealth Group Inc, Cigna Corp, and Oscar Health Inc. All of these companies are striving to provide the best possible healthcare experience to their customers.

– UnitedHealth Group Inc ($NYSE:UNH)

UnitedHealth Group Inc. is an American for-profit managed health care company based in Minnetonka, Minnesota. It is the largest healthcare company in the world by revenue, with 2019 revenue of $242.2 billion. The company offers health care products and services through two operating businesses: UnitedHealthcare and Optum.

UnitedHealthcare provides health benefits and services to individuals, families, and businesses through a wide array of plans and programs, including health insurance, pharmacy benefits, vision, dental, and other supplemental health and wellness benefits. Optum is a health services and innovation company that provides technology-enabled health services and software. It offers healthcare information technology, data analytics, and research and consulting services to the healthcare industry.

The company has a market capitalization of $488.16 billion as of April 2021 and a return on equity of 21.75%.

– Cigna Corp ($NYSE:CI)

Cigna Corp is a health services company with a market cap of 88.46 billion as of 2022. The company has a return on equity of 11.01%. Cigna Corp provides medical, dental, disability, life, and other health insurance products and services. The company also offers pharmacy benefit management services.

– Oscar Health Inc ($NYSE:OSCR)

Oscar Health is a technology-driven health insurance company founded in 2012. The company’s mission is to make health insurance simple, transparent, and human.

Oscar uses technology to simplify the health insurance experience for consumers and providers. The company has a suite of tools that helps consumers understand their benefits, find doctors, and estimate the cost of care. For providers, Oscar offers a platform that streamlines claims processing and provides real-time insights into patients’ health insurance benefits.

Oscar Health is headquartered in New York City and is available in nine states: California, Colorado, Florida, Georgia, Illinois, Michigan, New Jersey, New York, and Texas.

Summary

Humana Inc. has made a move to expand its hospice and home care services through the acquisition of ProMedica Assets for $710 million. The increase in services should bring new opportunities to Humana, as it seeks to establish itself as a leader in the healthcare market. For investors, the move could bring higher returns due to the potential for more revenue, as well as cost savings from the decrease in overhead and related expenses. Humana is optimistic that the acquisition will lead to improved investor relations, with analysts expecting strong growth in the long term.