Steve Weiss, founder and managing partner at Short Hills Capital Partners, joins CNBC's “Halftime Report” to explain why he's buying Humana now.
Shares of health insurance provider Humana (HUM) plunged to their lowest level since 2020 after a large share of its Medicare offerings were downgraded by the Centers for Medicare and Medicaid Services (CMS).
Shares of Humana Inc (HUM, Financial) fell 17.63% in mid-day trading on Oct 2. The stock reached an intraday low of $213.31, before recovering slightly to $230.18, down from its previous close of $279.45.
CNBC's Bertha Coombs joins 'Squawk on the Street' to discuss why Humana is plunging today.
Humana's stock was headed for another sharp selloff on Tuesday, toward a more than four-year low, after the government cut its rating on one of the health insurer's large Medicare Advantage plans because it missed some performance measures.
Worries mount about the company's Medicare Advantage program.
Humana said the total members enrolled in its highly rated Medicare Advantage plans for people aged 65 years and above have reduced for 2025, sending the insurer's shares down about 12% in premarket trading.
A couple of the best fund managers like these undervalued stocks.
Enigmatic investing legend Seth Klarman runs the Boston-based Baupost Group hedge fund that has around $27 billion in assets under management.
HUM and Interwell Health add Florida to their value-based kidney care program in a bid to improve health outcomes.
Humana's stock has faced a sharp sell-off, but fundamentals remain strong, with a potential 40% to 50% upside within 24 months as headwinds fade.
Humana has slid 10% due to exiting 13 markets, raising investor concerns, but remains attractive due to strong profitability and management alignment with investor interests. Despite trailing the S&P 500, Humana's core profitability is impressive, with NOPAT rising even as GAAP net income declined. Executive compensation tied to ROIC ensures management is incentivized to create value, making Humana a good long-term investment.