Humana Inc. Secures Consensus “Hold” Rating from Analysts

Shares of Humana Inc. (NYSE:HUM) currently hold a consensus rating of “Hold” according to a report from Marketbeat. This assessment is based on evaluations from nineteen analysts covering the company. Among them, two analysts have issued sell recommendations, nine have opted for hold ratings, and eight have assigned buy ratings. The average twelve-month price target for Humana shares stands at approximately $295.94.

Several recent evaluations have influenced this consensus. On July 31, 2023, Piper Sandler reduced their price target for Humana from $288.00 to $272.00, maintaining a “neutral” rating on the stock. In contrast, Guggenheim reaffirmed their “buy” rating on October 3, 2023. Additionally, The Goldman Sachs Group lowered its target price from $235.00 to $215.00 while assigning a “sell” rating. Notably, Sanford C. Bernstein increased their price target from $269.00 to $341.00 and upgraded the stock to an “outperform” rating on September 5, 2023. Meanwhile, Wells Fargo & Company raised its target price from $344.00 to $347.00 and gave the stock an “overweight” rating on October 7, 2023.

Stock Performance and Financials

As of Wednesday, Humana shares opened at $237.85. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.95, and a quick ratio of 1.95. Humana’s market capitalization is around $28.61 billion. The stock has a price-to-earnings (P/E) ratio of 18.25 and a P/E to growth (P/E/G) ratio of 1.71. Over the past year, Humana’s stock reached a low of $206.87 and a high of $315.35. The company’s 50-day simple moving average is $264.19, while the 200-day average is $256.86.

Humana recently reported its quarterly earnings on November 5, 2023, revealing earnings per share (EPS) of $3.24, exceeding analysts’ expectations of $2.95 by $0.29. The company achieved a net margin of 1.28% and a return on equity of 13.67%. During the same quarter, Humana generated revenue of $32.65 billion, surpassing forecasts of $31.99 billion and reflecting an 11.1% increase from the previous year.

Dividend Announcement and Institutional Trading

In a recent announcement, Humana declared a quarterly dividend of $0.885 per share, which will be paid on January 30, 2024, to shareholders of record as of December 26, 2023. This dividend reflects an annualized total of $3.54 and a yield of 1.5%. The company’s dividend payout ratio (DPR) is currently at 33.18%.

Institutional investors have been active in trading Humana shares. UBS Asset Management Americas LLC increased its stake by 16.2% in the first quarter, now owning approximately 1,136,538 shares valued at $300.73 million. Additionally, Focus Partners Wealth raised its position by 104.2%, acquiring a total of 6,429 shares worth $1.70 million. Other institutions, including Circle Wealth Management LLC and Kera Capital Partners Inc., have also established new positions or increased their stakes in Humana.

As of now, approximately 92.38% of Humana’s stock is owned by hedge funds and other institutional investors, indicating strong institutional interest and confidence in the company’s future performance.

Humana Inc. continues to play a significant role in the U.S. healthcare insurance market, providing medical and specialty insurance products through its Insurance and CenterWell segments. The firm offers a range of benefit plans, including contracts with the Centers for Medicare and Medicaid Services and various state agencies for Medicaid and long-term support services.