Humana Stock Falls on Downgrade at Jefferies

Shares of Humana (HUM)  were lower over 1% during mid-morning trading after the stock was downgraded at Jefferies to "Hold" from "Buy" with a $221 price target.

Humana's stock is too expensive given that the 2018 premium growth under President Trump is lower than in 2017 under Obama, Jefferies analyst David Windley noted.

Factors that would improve Medicare Advantage decidedly above Medicaid and Commercial "are not blossoming," Windley wrote.

While he notes that shares of Humana are "too expensive," Windley argues that its counterpart Anthem's  (ANTM)  stock is "cheap."

(What will move markets this quarter and how should investors position themselves ahead of time? Jim Cramer sat down with four of TheStreet's top columnists recently to get their views. Click here to listen to his latest Trading Strategies roundtable with them and read their advice for stocks, bonds, forex and gold.)

If you liked this article you might like

Apple Is the Tom Brady of Stocks: Cramer's 'Mad Money' Recap (Thursday 8/31/17)

Boeing, Pure Storage, Activision Blizzard: 'Mad Money' Lightning Round

The Makings of Another Huge Rebound?

Healthcare Management Stocks Look Too Pricey for Activists

Tenet Dives After Worse Than Expected Quarter Leads to Lower 2017 Outlook