Health insurance company Humana Inc. (HUM) recently announced that it has completed the acquisition of Kindred at Home, which is a provider of home healthcare, hospice and related services in the U.S. The terms of the deal have not been disclosed so far.
Following the news, shares of the company appreciated marginally to close at $413.36 on Tuesday.
With this buyout, Humana is expected to gain a strong footing in the home health, hospice and personal care services space. The buyout will result in the integration of Kindred at Home’s home health operations with Humana’s Home Solutions business under Humana’s new payer-agnostic healthcare services brand, CenterWell.
The CEO of Humana, Bruce D. Broussard, said, “The addition of Kindred at Home will help us significantly expand our home health offering, with a focus on accelerating clinical innovation, improving patient outcomes, increasing satisfaction for patients and providers, reducing the total cost of care and providing greater value for health plan partners.” (See Humana stock chart on TipRanks)
Recently, Mizuho Securities analyst Ann Hynes reiterated a Buy rating on the stock with a price target of $480. The analyst’s price target implies 16.1% upside potential from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 9 Buys and 4 Holds. The average Humana price target of $485.25 implies that the stock has 17.4% upside potential from current levels.
Humana scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have declined about 1% over the past year.
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