Humana (HUM) Stock Rating Reaffirmed by Cantor Fitzgerald

Humana (NYSE:HUM)‘s stock had its “hold” rating restated by analysts at Cantor Fitzgerald in a report released on Wednesday. They presently have a $250.00 price target on the insurance provider’s stock. Cantor Fitzgerald’s price target points to a potential downside of 5.62% from the stock’s previous close.

The analysts wrote, “4Q17 results recap. 4Q17 revenue was $13 billion vs. our estimate of $13.8 billion and consensus of $13.2 billion. Retail segment revenue grew 3% and individual MA membership grew 1%. January 2018 individual MA membership grew about 5.7% from year end levels, which is impressive. Group MA membership grew nicely in 2017. January 2018 Group MA membership grew another 12% sequentially. MLR was slightly below our estimate and operating costs were essentially in line. 4Q17 EPS was $2.06 vs. our estimate of $1.97 and consensus of $2.00.””

Several other analysts have also recently issued reports on the stock. Zacks Investment Research cut shares of Humana from a “strong-buy” rating to a “hold” rating in a report on Friday, January 19th. Jefferies Group raised shares of Humana from a “hold” rating to a “buy” rating and set a $221.00 price target on the stock in a report on Friday, January 12th. Goldman Sachs Group began coverage on shares of Humana in a report on Wednesday, January 3rd. They issued a “buy” rating and a $305.00 price target on the stock. ValuEngine cut shares of Humana from a “buy” rating to a “hold” rating in a report on Tuesday, December 19th. Finally, Cowen reaffirmed a “buy” rating and issued a $285.00 price target on shares of Humana in a report on Wednesday, December 13th. Nine investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company’s stock. Humana presently has an average rating of “Buy” and an average price target of $263.79.

Humana (HUM) traded down $4.22 on Wednesday, reaching $264.90. 1,686,540 shares of the company traded hands, compared to its average volume of 1,130,000. The firm has a market capitalization of $37,840.00, a PE ratio of 20.86, a PEG ratio of 1.65 and a beta of 0.93. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.35. Humana has a 1 year low of $189.01 and a 1 year high of $293.35.

Humana (NYSE:HUM) last posted its quarterly earnings results on Wednesday, February 7th. The insurance provider reported $2.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.00 by $0.06. The firm had revenue of $13.19 billion for the quarter, compared to analysts’ expectations of $13.14 billion. Humana had a net margin of 3.49% and a return on equity of 15.99%. The firm’s quarterly revenue was up 2.4% on a year-over-year basis. During the same period in the prior year, the company posted $2.34 earnings per share. sell-side analysts predict that Humana will post 11.63 earnings per share for the current year.

Humana announced that its Board of Directors has authorized a share buyback program on Thursday, December 14th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the insurance provider to repurchase shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its shares are undervalued.

In other Humana news, SVP Jody L. Bilney sold 7,054 shares of the stock in a transaction on Monday, December 18th. The shares were sold at an average price of $247.89, for a total transaction of $1,748,616.06. Following the sale, the senior vice president now directly owns 11,704 shares of the company’s stock, valued at $2,901,304.56. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Timothy S. Huval sold 1,382 shares of the stock in a transaction on Tuesday, December 19th. The stock was sold at an average price of $246.04, for a total transaction of $340,027.28. Following the sale, the vice president now directly owns 11,557 shares in the company, valued at $2,843,484.28. The disclosure for this sale can be found here. Insiders have sold 10,115 shares of company stock worth $2,501,627 over the last three months. 0.80% of the stock is owned by corporate insiders.

Large investors have recently modified their holdings of the business. Janus Henderson Group PLC increased its holdings in shares of Humana by 74.1% in the 3rd quarter. Janus Henderson Group PLC now owns 2,729,248 shares of the insurance provider’s stock worth $664,921,000 after acquiring an additional 1,161,661 shares during the period. Koch Industries Inc. acquired a new stake in shares of Humana in the 2nd quarter worth about $404,000. APG Asset Management N.V. increased its holdings in shares of Humana by 60.3% in the 4th quarter. APG Asset Management N.V. now owns 729,519 shares of the insurance provider’s stock worth $150,709,000 after acquiring an additional 274,435 shares during the period. Bank of Montreal Can increased its holdings in shares of Humana by 118.3% in the 4th quarter. Bank of Montreal Can now owns 501,379 shares of the insurance provider’s stock worth $124,378,000 after acquiring an additional 271,701 shares during the period. Finally, Old Mutual Global Investors UK Ltd. increased its holdings in shares of Humana by 127.4% in the 3rd quarter. Old Mutual Global Investors UK Ltd. now owns 441,325 shares of the insurance provider’s stock worth $107,520,000 after acquiring an additional 247,237 shares during the period. 94.39% of the stock is currently owned by institutional investors.

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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.

Analyst Recommendations for Humana (NYSE:HUM)

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