Humana to buy back $750M in stocks
Health insurance and services provider Humana has announced it will accelerate stock repurchase of $750 million.
The move is part of an accelerated stock repurchase agreement with Goldman Sachs & Co. to repurchase $3 billion, which was previously announced in December 2017. The repurchase is expected to be funded through a combination of parent cash and debt financing.
The number of shares in the buyback will depend on the share price of Humana common stock over the term of the agreement. Final settlement will occur in the first quarter of 2019, according to Humana.
The announcement comes after Humana made significant strides in its shift to value-based care over the last year. The company released its value-based care report in November, revealing big gains in its Medicare Advantage membership and transition away from fee-for-service among its physicians.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."