Should You Hold Humana (HUM)?

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” first-quarter 2024 investor letter.  A copy of the letter can be downloaded here. Markets rose significantly in the first quarter of 2024, providing positive returns across most regions and countries. The strategy outperformed the Russell 1000 Index in Q1 and returned 10.64% (net) vs 10.30% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.

Diamond Hill Large Cap Strategy highlighted stocks like Humana Inc. (NYSE:HUM), in the first quarter 2024 investor letter. Humana Inc. (NYSE:HUM) offers medical and specialty insurance products. Humana Inc.'s (NYSE:HUM) one-month return was 12.19%, and its shares lost 28.74% of their value over the last 52 weeks. On June 3, 2024, Humana Inc. (NYSE:HUM) stock closed at $364.20 per share with a market capitalization of $43.886 billion.

Diamond Hill Large Cap Strategy stated the following regarding Humana Inc. (NYSE:HUM) in its first quarter 2024 investor letter:

"Among our bottom Q1 contributors were real estate investment trusts (REITs) Extra Space Storage and SBA Communications, as well as Humana Inc. (NYSE:HUM. Shares of health insurance company Humana were meaningfully pressured in late 2023 against a backdrop of accelerating medical costs among its Medicare population, weighing on health plan profitability. Further, since Medicare Advantage plan pricing is set in June of each year for the following year, Humana is unable to offset increased medical costs with higher pricing — which in turn pressured shares in Q1. Nevertheless, we anticipate Humana will be able to improve margins over the next several years and maintain our conviction in our position."

A closeup of an elderly patient happily receiving a specialty healthcare product.

Humana Inc. (NYSE:HUM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of the first quarter which was 86 in the previous quarter. Humana Inc. (NYSE:HUM)’s trailing 12 months revenue is $109.24 billion and year over year quarterly revenue growth rate is 10.70%.

In another article, we discussed Humana Inc. (NYSE:HUM) and shared the list of best insurance dividend stocks to invest in. Artisan Value Fund added Humana Inc. (NYSE:HUM) to its portfolio in the first quarter 2024.  In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.