Investors Buy Humana Inc. (HUM) on Weakness Following Analyst Downgrade
Traders purchased shares of Humana Inc. (NYSE:HUM) on weakness during trading on Thursday after Royal Bank Of Canada lowered their price target on the stock from $222.00 to $217.00. $297.61 million flowed into the stock on the tick-up and $272.80 million flowed out of the stock on the tick-down, for a money net flow of $24.81 million into the stock. Of all equities tracked, Humana had the 15th highest net in-flow for the day. Humana traded down ($9.09) for the day and closed at $168.44
Other equities research analysts have also issued reports about the company. Zacks Investment Research raised Humana from a “hold” rating to a “buy” rating and set a $198.00 price objective for the company in a research note on Tuesday, October 4th. Credit Suisse Group AG reaffirmed a “hold” rating on shares of Humana in a research note on Tuesday, June 28th. Cantor Fitzgerald reaffirmed a “buy” rating on shares of Humana in a research note on Saturday, July 9th. Leerink Swann reaffirmed an “outperform” rating on shares of Humana in a research note on Tuesday, June 21st. Finally, Wolfe Research raised Humana to an “outperform” rating and set a $192.00 price objective for the company in a research note on Thursday, July 21st. Six analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. The company has an average rating of “Buy” and a consensus price target of $200.50.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Virginia Retirement System bought a new position in shares of Humana during the first quarter worth about $440,000. NN Investment Partners Holdings N.V. bought a new position in shares of Humana during the first quarter worth about $3,104,000. Bessemer Group Inc. increased its position in shares of Humana by 392.6% in the first quarter. Bessemer Group Inc. now owns 1,000 shares of the insurance provider’s stock worth $183,000 after buying an additional 797 shares in the last quarter. Spark Investment Management LLC bought a new position in shares of Humana during the first quarter worth about $274,000. Finally, Aviva PLC increased its position in shares of Humana by 1.9% in the first quarter. Aviva PLC now owns 86,580 shares of the insurance provider’s stock worth $15,840,000 after buying an additional 1,632 shares in the last quarter. Institutional investors and hedge funds own 93.24% of the company’s stock.
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The stock’s 50-day moving average price is $176.40 and its 200 day moving average price is $175.87. The company has a market cap of $25.26 billion, a price-to-earnings ratio of 26.04 and a beta of 0.90.
Humana (NYSE:HUM) last issued its quarterly earnings data on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.07. The company earned $14 billion during the quarter, compared to analyst estimates of $13.59 billion. Humana had a return on equity of 11.11% and a net margin of 1.76%. The firm’s revenue for the quarter was up 2.0% compared to the same quarter last year. During the same period in the prior year, the business posted $1.67 earnings per share. Analysts anticipate that Humana Inc. will post $9.24 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 28th. Investors of record on Thursday, October 13th will be given a $0.29 dividend. The ex-dividend date is Tuesday, October 11th. This represents a $1.16 annualized dividend and a yield of 0.68%. Humana’s payout ratio is 18.18%.
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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