Humana's Trading Volume Surges to $696 Million, Ranked 117th Despite Stock Price Decline

On May 22, 2025, Humana's trading volume reached $696 million, marking an 80.44% increase from the previous day. This surge placed Humana at the 117th position in terms of trading volume for the day. However, the stock price of Humana (HUM) declined by 7.58%, marking the second consecutive day of decline, with a total decrease of 11.03% over the past two days.

The recent decline in Humana's stock price can be attributed to the Centers for Medicare and Medicaid Services (CMS) announcing a significant expansion of its auditing efforts for Medicare Advantage plans. This move is part of a broader effort to address concerns about fraud, waste, and abuse in federal healthcare programs. The expanded audits are expected to have a financial impact on large-cap insurers, including Humana, as they have significant exposure within managed care.

Despite the regulatory concerns, some analysts remain optimistic about Humana's long-term prospects. For instance, JP Morgan analyst Lisa Gill reiterated her optimistic view on UnitedHealth Group Inc., which is similarly affected by the CMS audits. Gill noted that it is difficult to gauge the financial impact of the expanded audits at this stage but believes that large-cap insurers have significant exposure within managed care. She suggests investors should wait for UnitedHealth’s response, as the process is in the early stages, and warns against factoring in any impact on company earnings as of now.

Humana, one of the largest private health insurers in the US, has built a niche specializing in government-sponsored programs. The company's stock has been affected by a mix of regulatory concerns, legal inquiries, and technical selling, despite some positive analyst views. The expanded audits by CMS have added to the regulatory pressures, contributing to the recent decline in Humana's stock price.