Humana Inc. (HUM) Upgraded to “Buy” at Zacks Investment Research
Humana Inc. (NYSE:HUM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The firm currently has a $198.00 target price on the insurance provider’s stock. Zacks Investment Research’s target price points to a potential upside of 11.40% from the stock’s current price.
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.”
HUM has been the topic of several other reports. Argus reiterated a “hold” rating on shares of Humana in a report on Tuesday, August 23rd. JPMorgan Chase & Co. cut Humana from an “overweight” rating to a “neutral” rating and lowered their target price for the stock from $196.00 to $150.00 in a report on Friday, July 8th. RBC Capital Markets restated a “buy” rating and set a $224.00 target price (up from $220.00) on shares of Humana in a report on Friday, July 22nd. Jefferies Group upgraded Humana from a “hold” rating to a “buy” rating and boosted their target price for the stock from $158.89 to $210.00 in a report on Monday, July 18th. Finally, Wolfe Research began coverage on Humana in a report on Tuesday, June 28th. They set a “market perform” rating and a $244.00 target price on the stock. Five investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus price target of $201.00.
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Humana (NYSE:HUM) opened at 177.74 on Tuesday. Humana has a 52 week low of $150.00 and a 52 week high of $191.65. The company has a market cap of $26.50 billion, a PE ratio of 27.31 and a beta of 0.90. The company has a 50-day moving average price of $176.80 and a 200 day moving average price of $176.07.
Humana (NYSE:HUM) last posted its quarterly earnings data on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ 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 in the previous year, the firm posted $1.67 EPS. Humana’s revenue was up 2.0% compared to the same quarter last year. On average, equities research analysts forecast that Humana will post $9.24 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 28th. Stockholders of record on Thursday, October 13th will be given a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.65%. The ex-dividend date is Tuesday, October 11th. Humana’s dividend payout ratio is currently 18.18%.
Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in Humana by 2.5% in the second quarter. Vanguard Group Inc. now owns 8,964,492 shares of the insurance provider’s stock worth $1,612,532,000 after buying an additional 219,311 shares in the last quarter. BlackRock Institutional Trust Company N.A. increased its position in shares of Humana by 3.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,908,027 shares of the insurance provider’s stock worth $702,976,000 after buying an additional 120,720 shares during the last quarter. Arrowgrass Capital Partners US LP increased its position in shares of 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 worth $526,685,000 after buying an additional 51,267 shares during the last quarter. Evercore Trust Company N.A. increased its position in shares of Humana by 3.0% in the second quarter. Evercore Trust Company N.A. now owns 2,570,366 shares of the insurance provider’s stock worth $462,357,000 after buying an additional 75,126 shares during the last quarter. Finally, BlackRock Fund Advisors increased its position in shares of Humana by 2.5% in the second quarter. BlackRock Fund Advisors now owns 2,074,281 shares of the insurance provider’s stock worth $373,122,000 after buying an additional 51,378 shares during the last quarter. 93.24% of the stock is currently owned by institutional investors and hedge funds.
Humana Company Profile
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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