Humana Inc (HUM · NYSE)

Humana shares jumped 4.6% to $397.93 after Barclays upgraded the insurer to Overweight and lifted its price target from $407 to $515 on expectations of a Medicare Star ratings rebound, with volume running 2.0x the 20-day average. The company has beaten estimates in all four of its last quarters, including June-quarter EPS of $7.61 versus $6.22 expected, while revenue grew 26.2% year over year to $40.87B in the most recent quarter. Margins remain thin — 3.5% operating and 0.9% profit — and operating cash flow was negative $426.0M in the June quarter against $14.25B of total debt at 4.0x EBITDA. The stock sits 2.9% below its 52-week high, trades at a 37.65 P/E, and the analyst target of $423.74 implies modest upside from current levels.