Humana is a holding company. Through its subsidiaries, Co. is a health and well-being company. Co.'s medical and specialty insurance products allow members to access health care services primarily through its networks of health care providers with whom it has contracted. Co. manages its business with three reportable segments: Retail, which is comprised of products sold on a retail basis to individuals including medical and supplemental benefit plans; Group and Specialty, which consists of employer group commercial fully-insured medical and specialty health insurance benefits; and Healthcare Services, which includes pharmacy, provider, and home services.
When researching a stock like Humana, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from HUM Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for HUM stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the HUM 200 day moving average ("HUM 200 DMA"), while one of the most popular "shorter look-backs" is the HUM 50 day moving average ("HUM 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Humana. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the HUM 200 DMA and the HUM 50 DMA, we get a moving average convergence divergence indicator ("HUM MACD"). The HUM MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis