Humana Inc. (HUM) Downgraded by Zacks Investment Research to “Hold”
Humana Inc. (NYSE:HUM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Humana thrives for long term growth on prudent inorganic growth, efficient capital deployment and business diversifications. Solid performance by Individual Medicare Advantage and Healthcare Services Business led Humana to raise its guidance. The Zacks Consensus Estimate has been witnessing upward revision since last 60 days leading to a 5% and 7.8% increase in 2016 and 2017 estimates respectively. Moreover, in three of the last four quarters, the company has recorded a positive earning surprise with an average beat of 1.32%. Nevertheless, the company faces increased competition, weakness in individual commercial business, increasing expenses, and softness in its group Medicare Advantage business. Moreover, the merger with Aetna has been objected by the U.S. Department of Justice. Hence, the deal that would have enhanced Humana’s market power now remains shrouded in uncertainty.”
Several other equities analysts have also recently issued reports on the company. Jefferies Group upgraded Humana from a “hold” rating to a “buy” rating and lifted their price target for the company from $158.89 to $210.00 in a research report on Monday, July 18th. JPMorgan Chase & Co. lowered Humana from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $196.00 to $150.00 in a research note on Friday, July 8th. Argus reissued a “hold” rating on shares of Humana in a research note on Tuesday, August 23rd. Wolfe Research started coverage on Humana in a research note on Tuesday, June 28th. They set a “market perform” rating and a $244.00 price objective for the company. Finally, Credit Suisse Group AG raised their price objective on Humana from $175.00 to $188.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 16th. Six research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $201.00.
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Shares of Humana (NYSE:HUM) traded down 0.03% during midday trading on Wednesday, hitting $174.46. The stock had a trading volume of 228,816 shares. The stock has a 50 day moving average of $177.17 and a 200-day moving average of $176.68. Humana has a one year low of $150.00 and a one year high of $191.65. The company has a market cap of $26.01 billion, a P/E ratio of 26.80 and a beta of 0.91.
Humana (NYSE:HUM) last issued its quarterly earnings results on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.23 by $0.07. Humana had a return on equity of 11.11% and a net margin of 1.76%. The company had revenue of $14 billion for the quarter, compared to analysts’ expectations of $13.59 billion. During the same period last year, the firm earned $1.67 EPS. The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. Analysts forecast that Humana will post $9.26 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Thursday, October 13th will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Tuesday, October 11th. This represents a $1.16 annualized dividend and a yield of 0.66%. Humana’s dividend payout ratio (DPR) is currently 18.18%.
A number of institutional investors have recently bought and sold shares of HUM. Macquarie Group Ltd. raised its position in Humana by 1.0% in the second quarter. Macquarie Group Ltd. now owns 61,657 shares of the insurance provider’s stock worth $11,091,000 after buying an additional 607 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund acquired a new position in Humana during the second quarter worth approximately $1,083,000. Kentucky Retirement Systems acquired a new position in Humana during the second quarter worth approximately $2,280,000. Northwestern Mutual Investment Management Company LLC raised its position in Humana by 0.4% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 5,684 shares of the insurance provider’s stock worth $1,022,000 after buying an additional 22 shares during the last quarter. Finally, Mason Street Advisors LLC acquired a new position in Humana during the second quarter worth approximately $3,611,000. Institutional investors own 93.24% of the company’s stock.
Humana Inc is a health and well-being company. The Company’s segments include Retail, Group, Healthcare Services and Other Businesses. The Retail segment consists of Medicare benefits, marketed to individuals or directly via group accounts, as well as individual commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products.
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