Humana Inc. (HUM) Stock Rating Lowered by Zacks Investment Research
Humana Inc. (NYSE:HUM) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Humana is well poised to grow on its strong government business. Its top-line has been witnessing an uptrend from past many years. Sufficient generation of cash flow has helped the company take up several capital deployment initiatives aimed at enhancing shareholders’ value. Humana’s sound balance sheet and disciplined capital management remains a positive. Following its strong second-quarter 2017 results, it raised its 2017 adjusted EPS guidance. The company has also seen the Zacks Consensus Estimate for the current year earnings being revised upward in last 30 days. Although the shares have performed in line with the industry in a year's time, its strong fundamentals are likely to help the stock in gaining momentum going forward. However, the company's individual commercial business has remained a drag over past few years. The company will release third quarter results on Nov 8, 2017.”
A number of other research analysts also recently commented on the stock. Citigroup Inc. initiated coverage on shares of Humana in a research note on Wednesday, June 28th. They set a “buy” rating and a $275.00 price objective for the company. ValuEngine raised shares of Humana from a “hold” rating to a “buy” rating in a research note on Friday, September 1st. BidaskClub downgraded shares of Humana from a “buy” rating to a “hold” rating in a research note on Wednesday, July 19th. Bank of America Corporation upped their price objective on shares of Humana from $270.00 to $275.00 and gave the company a “buy” rating in a research note on Friday, July 14th. Finally, Piper Jaffray Companies upped their price objective on shares of Humana to $280.00 and gave the company an “overweight” rating in a research note on Thursday, August 3rd. Twelve equities research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $253.90.
Humana (NYSE:HUM) traded up 1.95% during mid-day trading on Tuesday, hitting $241.80. 967,226 shares of the stock traded hands. The company has a 50 day moving average of $247.41 and a 200-day moving average of $235.83. Humana has a 12-month low of $165.03 and a 12-month high of $259.76. The stock has a market cap of $34.94 billion, a PE ratio of 19.89 and a beta of 0.86.
Humana (NYSE:HUM) last posted its quarterly earnings data on Wednesday, August 2nd. The insurance provider reported $3.49 EPS for the quarter, beating the Zacks’ consensus estimate of $3.08 by $0.41. Humana had a net margin of 3.37% and a return on equity of 15.85%. The company had revenue of $13.53 billion during the quarter, compared to the consensus estimate of $13.61 billion. During the same quarter in the prior year, the company posted $2.30 EPS. Equities research analysts forecast that Humana will post $11.56 earnings per share for the current year.
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In other Humana news, insider William Kevin Fleming sold 3,071 shares of the stock in a transaction on Wednesday, August 23rd. The stock was sold at an average price of $250.98, for a total value of $770,759.58. Following the sale, the insider now directly owns 7,681 shares of the company’s stock, valued at $1,927,777.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Bruce D. Broussard sold 12,000 shares of the stock in a transaction on Friday, August 11th. The stock was sold at an average price of $251.88, for a total value of $3,022,560.00. Following the completion of the sale, the chief executive officer now directly owns 80,086 shares in the company, valued at $20,172,061.68. The disclosure for this sale can be found here. Insiders sold 55,595 shares of company stock worth $14,133,706 over the last ninety days. 0.80% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. increased its position in Humana by 2,281.7% in the first quarter. BlackRock Inc. now owns 12,387,144 shares of the insurance provider’s stock worth $2,553,487,000 after buying an additional 11,867,056 shares during the period. Vanguard Group Inc. increased its holdings in shares of Humana by 1.6% during the second quarter. Vanguard Group Inc. now owns 9,892,635 shares of the insurance provider’s stock valued at $2,380,366,000 after purchasing an additional 157,868 shares during the period. FMR LLC increased its holdings in shares of Humana by 29.3% during the second quarter. FMR LLC now owns 6,530,063 shares of the insurance provider’s stock valued at $1,571,264,000 after purchasing an additional 1,479,210 shares during the period. State Street Corp increased its holdings in shares of Humana by 1.4% during the first quarter. State Street Corp now owns 6,274,811 shares of the insurance provider’s stock valued at $1,293,487,000 after purchasing an additional 84,716 shares during the period. Finally, Capital Research Global Investors increased its holdings in shares of Humana by 9.7% during the second quarter. Capital Research Global Investors now owns 3,907,333 shares of the insurance provider’s stock valued at $940,182,000 after purchasing an additional 346,069 shares during the period. 95.11% of the stock is currently owned by hedge funds and other institutional investors.
Humana Company Profile
Humana Inc is a health and well-being company. The Company’s segments include Retail, Group and Specialty, Healthcare Services and Individual Commercial. The Retail segment consists of Medicare benefits, 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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