Analysts’ Weekly Ratings Updates for Humana (HUM)

Humana (NYSE: HUM) has recently received a number of price target changes and ratings updates:

  • 2/12/2018 – Humana was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $294.00 price target on the stock. According to Zacks, “Humana’s fourth-quarter 2017 earnings per share of $2.06 beat the Zacks Consensus Estimate but declined 12% year over year due to higher benefit expenses. Following decent 2017 results, the company provided strong guidance for 2018. Its shares have outperformed the industry in last three months.  Humana is well poised to grow on its strong government business. Its top line has been witnessing an uptrend for 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 remain major tailwinds. However, the company's individual commercial business has remained a drag over past few years. Rising level of expenses also continues to weigh on the bottom line.”
  • 2/12/2018 – Humana had its price target raised by analysts at JPMorgan Chase & Co. from $253.00 to $271.00. They now have a “neutral” rating on the stock.
  • 2/9/2018 – Humana had its price target raised by analysts at Deutsche Bank AG from $259.00 to $270.00. They now have a “hold” rating on the stock.
  • 2/8/2018 – Humana had its price target raised by analysts at Oppenheimer Holdings Inc. from $275.00 to $305.00. They now have an “outperform” rating on the stock.
  • 2/8/2018 – Humana had its price target raised by analysts at Leerink Swann from $280.00 to $300.00. They now have an “outperform” rating on the stock.
  • 2/8/2018 – Humana was upgraded by analysts at Credit Suisse Group AG from a “neutral” rating to an “outperform” rating. They now have a $246.00 price target on the stock, down previously from $264.90.
  • 2/7/2018 – Humana had its “hold” rating reaffirmed by analysts at Cantor Fitzgerald. They now have a $250.00 price target on the stock. They 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.””
  • 1/19/2018 – Humana was downgraded by analysts at Zacks Investment Research from a “strong-buy” rating to a “hold” rating. According to Zacks, “Humana is well poised to grow on its strong government business. Its top line has been witnessing an uptrend for 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 remain major tailwinds. Following its strong third-quarter 2017 results, the company raised its 2017  earnings  guidance. Although its shares have underperformed the industry in a year's time, its strong fundamentals are likely to help the stock gain momentum going forward. However, the company's individual commercial business has remained a drag over past few years. Rising level of expenses also continues to weigh on the bottom line. Humana will release its fourth-quarter and full year 2017 results on Feb 7, 2018 before the market opens.”
  • 1/15/2018 – Humana was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $297.00 price target on the stock. According to Zacks, “Humana is well poised to grow on its strong government business. Its top line has been witnessing an uptrend for 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 third-quarter 2017 results, it raised its 2017  earnings  guidance. Although its shares have underperformed the industry in a year's time, its strong fundamentals are likely to help the stock gain momentum going forward. However, the company's individual commercial business has remained a drag over past few years. Rising level of expenses also continues to weigh on the bottom line. The company will release its fourth-quarter and full year 2017 results on Feb 7, 2018 before the market opens.”
  • 1/12/2018 – Humana was upgraded by analysts at Jefferies Group LLC from a “hold” rating to a “buy” rating. They now have a $221.00 price target on the stock.
  • 1/3/2018 – Humana is now covered by analysts at Goldman Sachs Group Inc. They set a “buy” rating and a $305.00 price target on the stock.
  • 12/19/2017 – Humana was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.

Shares of Humana Inc (NYSE:HUM) traded up $2.32 during trading hours on Monday, hitting $267.64. 368,092 shares of the stock traded hands, compared to its average volume of 1,206,716. Humana Inc has a 52 week low of $203.36 and a 52 week high of $293.35. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.85 and a quick ratio of 1.61. The firm has a market cap of $36,528.92, a P/E ratio of 16.05, a PEG ratio of 1.44 and a beta of 0.93.

Humana (NYSE:HUM) last issued its earnings results on Wednesday, February 7th. The insurance provider reported $2.06 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.00 by $0.06. Humana had a net margin of 4.55% and a return on equity of 16.13%. The company had revenue of $13.19 billion for the quarter, compared to the consensus estimate of $13.14 billion. During the same quarter in the previous year, the company earned $2.34 EPS. The firm’s revenue for the quarter was up 2.4% compared to the same quarter last year. equities research analysts predict that Humana Inc will post 13.85 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, April 27th. Stockholders of record on Friday, March 30th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 0.75%. The ex-dividend date of this dividend is Wednesday, March 28th. This is an increase from Humana’s previous quarterly dividend of $0.40. Humana’s payout ratio is currently 9.59%.

In other news, VP Timothy S. Huval sold 1,382 shares of the business’s stock in a transaction on Tuesday, December 19th. The shares were sold at an average price of $246.04, for a total value of $340,027.28. Following the sale, the vice president now owns 11,557 shares in the company, valued at approximately $2,843,484.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Jody L. Bilney sold 7,054 shares of Humana stock in a transaction dated Monday, December 18th. The shares were sold at an average price of $247.89, for a total value of $1,748,616.06. Following the completion of the transaction, the senior vice president now directly owns 11,704 shares of the company’s stock, valued at $2,901,304.56. The disclosure for this sale can be found here. Insiders sold a total of 10,115 shares of company stock worth $2,501,627 in the last 90 days. 0.80% of the stock is owned by corporate insiders.

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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