Manning & Napier Advisors Reduces Stake in Humana Inc. by 52.7%

Manning & Napier Advisors LLC has significantly decreased its stake in Humana Inc. (NYSE: HUM), reducing its holdings by 52.7% during the third quarter of 2023. According to a recent disclosure with the Securities and Exchange Commission, the firm sold 5,888 shares and now holds 5,293 shares in the health insurance provider, valued at $1,377,000 at the end of the reporting period.

Several other large investors have also adjusted their positions in Humana. Blue Trust Inc. increased its holdings by 3.6% during the second quarter, bringing its total to 1,367 shares worth $334,000 after acquiring an additional 48 shares. Similarly, Private Wealth Management Group LLC raised its stake by 47.5% in the third quarter, now owning 149 shares valued at $39,000. Ossiam and MassMutual Private Wealth & Trust FSB also added to their positions, with increases of 1.6% and 15.9%, respectively.

Institutional investors and hedge funds currently hold 92.38% of Humana’s stock, indicating strong institutional interest in the company.

Analysts Provide Mixed Outlook on Humana

Market analysts have offered varied assessments of Humana’s stock. On December 11, Robert W. Baird lowered its price target for Humana from $280.00 to $264.00, maintaining a “neutral” rating. In contrast, Guggenheim reaffirmed a “buy” rating in an earlier report, while Evercore ISI initiated coverage with an “in-line” rating and a price target of $295.00. Overall, eight analysts have given Humana a Buy rating, nine have assigned a Hold rating, and five have issued a Sell rating. According to data from MarketBeat.com, the consensus rating stands at “Hold” with a target price of $292.05.

Humana’s Recent Performance and Dividend Declaration

On November 5, Humana reported its earnings results for the third quarter, showing an earnings per share (EPS) of $3.24, surpassing analysts’ expectations of $2.95. The company generated $32.65 billion in revenue, exceeding forecasts of $31.99 billion. This represents an 11.1% increase in quarterly revenue year-over-year, although the EPS was down from $4.16 reported in the same period last year.

Humana also announced a quarterly dividend of $0.885, set to be paid on January 30, 2024, to investors recorded on December 26, 2023. This dividend reflects an annualized payout of $3.54, yielding 1.3%. The company’s dividend payout ratio currently stands at 33.18%.

Headquartered in Louisville, Kentucky, Humana Inc. is a major player in the health insurance sector, predominantly serving individuals and groups throughout the United States. The company specializes in Medicare Advantage plans and offers a range of health plans designed to meet the needs of its members, particularly seniors and those eligible for Medicare. Beyond traditional insurance, Humana also provides care management and wellness services aimed at enhancing chronic condition management and preventive care.

As Humana navigates the ever-evolving landscape of the health insurance market, the recent adjustments by institutional investors and the mixed outlook from analysts underscore the complexities facing the company moving forward.