Humana Stock In Focus After Firm Announces CFO Transition, Reiterates EPS Guidance: Retail ’s Bullish

Health insurer Humana Inc. announced on Tuesday that its CFO Susan Diamond will step down after 18 years at the firm and will be replaced by Celeste Mellet effective January 11, 2025.

Mellet currently serves as the CFO of infrastructure fund manager Global Infrastructure Partners (GIP). Prior to that, she was the CFO of Evercore, responsible for the firm’s financial, strategy, tax, information technology, and facilities functions. Mellet has also held various roles in Fannie Mae and Morgan Stanley.

CEO Jim Rechtin praised Mellet, saying she brings first-hand experience navigating dynamic and highly regulated industries.

“She has a proven track record of working with cross-functional teams to drive improved performance throughout the complex organizations where she has served as a leader. I am excited to partner with Celeste as we execute against our strategy, unlock the earnings power of the business, and deliver long-term shareholder value,” said Rechtin.

Meanwhile, Humana has reiterated its 2024 adjusted earnings per share (EPS) guidance of at least $16 and its 2025 adjusted EPS commentary of “at least in line with final 2024 results.”

Following the announcement, retail sentiment on Stocktwits was trending in the ‘bullish’ territory (56/100) compared to ‘neutral’ a month ago.

Humana Sentiment Meter and Message Volume as of 9:28 a.m. ET on Dec. 3, 2024 | Source: Stocktwits

Retail investors on Stocktwits have been expressing mixed opinions on the stock in recent times.

Meanwhile, during the third quarter, Humana reported an 11% year-over-year (YoY) rise in its consolidated revenue at $29.397 billion. Adjusted earnings per share (EPS) came in at $4.16 compared to $7.78 in the same quarter a year ago.

Shares of Humana were down nearly 2% on Tuesday. The stock has lost almost 39% since the beginning of the year.

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