Who’s Selling Shares of Humana?

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Shares of the healthcare company Humana (NYSE:HUM) may have started the new year with a significant gain, lifted by a rally in the overall market as investors expressed their relief at the passage of the fiscal cliff deal, but the stock reversed the progress it made Wednesday as reports of some end-of-year related insider selling became available.

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Section 4 filings made with the Securities and Exchange Commission throughout December showed that four company executives — Director Michael McCallister, Senior Vice President of Public Affairs Heidi Margulis, Director David Jones Jr, and former Chief Human Resources Officer Bonnie Hathcock — traded shares in amounts ranging from 14,287 to 60,000. Because of the executives’ positions of leadership within the company, they are required by law to publicly disclose the transactions within a few business days of the trade. But as the information becomes public, investors often interpret the sale as a self-assessment and begin selling shares. This is what happened to Humana on Thursday, which contributed to the fall in the company’s stock price.

While there still is time for improvement, the company’s shares have not yet been affected by its announcement of a partnership with DuPage Medical Group. The two healthcare companies will join together to launch the BreakThrough Care Center, which Humana described as a holistic outpatient clinic that was “designed to improve medical outcomes while lowering health care costs and improving patients’ ability to manage their health conditions.” Two centers opened in the Chicago area on Wednesday.

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