Humana Inc. (HUM) Lowered to Hold at Zacks Investment Research
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.”
A number of other brokerages have also weighed in on HUM. Leerink Swann reiterated an “outperform” rating on shares of Humana in a research report on Tuesday, June 21st. Credit Suisse Group AG reiterated a “hold” rating on shares of Humana in a research report on Tuesday, June 28th. Argus reiterated a “hold” rating on shares of Humana in a research report on Tuesday, August 23rd. Cantor Fitzgerald reiterated a “buy” rating on shares of Humana in a research report on Monday, August 8th. Finally, Wolfe Research began coverage on Humana in a research report on Tuesday, June 28th. They issued a “market perform” rating and a $244.00 price objective on the stock. Six research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus target price of $201.00.
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Humana (NYSE:HUM) traded up 0.0387% during midday trading on Wednesday, reaching $174.5875. The company had a trading volume of 223,097 shares. Humana has a 12-month low of $150.00 and a 12-month high of $191.65. The company has a 50-day moving average of $177.17 and a 200-day moving average of $176.68. The stock has a market capitalization of $26.03 billion, a PE ratio of 26.8225 and a beta of 0.91.
Humana (NYSE:HUM) last announced its quarterly earnings results on Wednesday, August 3rd. The insurance provider reported $2.30 EPS for the quarter, topping the Zacks’ consensus estimate of $2.23 by $0.07. The business had revenue of $14 billion for the quarter, compared to analysts’ expectations of $13.59 billion. Humana had a return on equity of 11.11% and a net margin of 1.76%. The business’s quarterly revenue was up 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.67 EPS. On average, analysts predict 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 $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 0.66%. The ex-dividend date of this dividend is Tuesday, October 11th. Humana’s dividend payout ratio (DPR) is 18.18%.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Renaissance Technologies LLC boosted its position in Humana by 246.3% in the first quarter. Renaissance Technologies LLC now owns 446,000 shares of the insurance provider’s stock valued at $81,596,000 after buying an additional 317,200 shares in the last quarter. Arrowgrass Capital Partners US LP boosted its position in Humana by 1.8% in the first quarter. Arrowgrass Capital Partners US LP now owns 2,878,848 shares of the insurance provider’s stock valued at $526,685,000 after buying an additional 51,267 shares in the last quarter. Orbis Allan Gray Ltd acquired a new position in Humana during the first quarter valued at $38,209,000. Hermes Investment Management Ltd. boosted its position in Humana by 8.6% in the second quarter. Hermes Investment Management Ltd. now owns 208,145 shares of the insurance provider’s stock valued at $37,441,000 after buying an additional 16,500 shares in the last quarter. Finally, Wellington Management Group LLP boosted its position in Humana by 4.7% in the first quarter. Wellington Management Group LLP now owns 3,447 shares of the insurance provider’s stock valued at $631,000 after buying an additional 154 shares in the last quarter. Hedge funds and other 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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