Back to top

Image: Bigstock

Humana Closes the Kindred Chapter With $900 Million Gentiva Exit

Read MoreHide Full Article

Key Takeaways

  • Humana will receive roughly $900 million from the sale of its remaining Gentiva stake.
  • The deal completes HUM's exit from hospice and personal care assets tied to Kindred.
  • Management expects no material impact on 2026 earnings from the divestiture.

Humana Inc. (HUM - Free Report) recently agreed to sell all, or substantially all, of its remaining minority stake in Gentiva, the hospice and palliative care company that emerged from the restructuring of Kindred at Home’s hospice and personal care operations. The transaction values Humana’s stake at roughly $900 million and is expected to close in the third quarter of 2026.

The move completes a strategy Humana set in motion after acquiring Kindred at Home in 2021 and later spinning off non-core hospice and personal care assets. Gentiva has since grown into one of the largest end-of-life care providers in the United States. It operates at more than 430 locations across 35 states and employs over thousands of caregivers and associates.

The minority stake sale to a consortium of investors marks the final step in Humana’s multiyear effort to exit ownership of businesses outside its core health insurance and home-health strategy. It simplifies the company’s portfolio, unlocks capital from a mature investment, and sharpens management’s focus on areas where Humana sees stronger long-term strategic value.

Management said the cash will be used for general corporate purposes. Importantly, Humana does not expect the divestiture to have a material impact on its 2026 earnings, suggesting the Gentiva stake was not a major contributor to current profitability. Gentiva Hospice generated revenues of $2.1 billion in 2025, which led to a net loss of $84 million.

HUM’s Price Performance

Humana’s shares have gained 42.3% year to date compared with the 24.7% rise of the industry it belongs to.

Zacks Investment Research Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Humana currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Medical space are Biodesix, Inc. (BDSX - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Pediatrix Medical Group, Inc. (MD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Biodesix’s full-year 2026 earnings implies a 36% improvement from the year-ago reported figure. It has remained stable over the past 30 days. Over the last four quarters, BDSX beat earnings estimates thrice and missed once, with an average surprise of 25.6%.

The consensus estimate for Molina Healthcare’s 2026 full-year earnings is pegged at $5.23 per share, which has witnessed five upward estimate revisions over the past 60 days against no downward movement. The consensus mark for MOH’s current-year revenues is pegged at $44.07 billion.

The Zacks Consensus Estimate for Pediatrix Medical’s 2026 bottom line suggests 9.3% year-over-year growth. MD has witnessed three upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 21.3%.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in