Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon. Today is Wednesday, October 2nd I'm your host Kim Khan. Our top story so far.

Humana is plunging after the health insurer disclose a sharp reduction in members

rolled in its Medicare Advantage plans rated four stars and above.

Citing preliminary 2025 MA star ratings data,

Humana said that the members enrolled in its plans rated four stars and above

reached roughly 1.6 million for 2025, or 25%

of all members, down from about a 94% enrollment for 2024.

As part of the Star rating system, the Centers for Medicare and Medicaid Services

rewards plans with four or more stars with annual bonus payments.

Plans with higher ratings can receive higher bonuses in the following calendar year. But Humana contested the data

noting that there may be errors in the CMS's calculation. In a filing the company says there may be

potential errors in CMS's calculation of certain of its results and

industry threshold cut points, noting it will continue to engage with CMS to ensure

the numbers are accurate and reflects the plan's quality. The company added that it's exploring all

available options to mitigate the expected 2026 revenue headwind related to its

2025 star ratings in the event its challenges to the results are unsuccessful.

It added there is a risk to achieve an MA margin target of at least 3% by 2027.

But the 2025 stars results are not expected to impact Humana's financial results or outlook for

2024 or 2025.

Among other active stocks today, Barclays analyst George Wang sees a little upside for

super microcomputer near term as he adjusted his price target for $42, just about 50 cents above current levels.

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