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 brokerage presently has a $198.00 price target on the insurance provider’s stock. Zacks Investment Research’s price target would suggest a potential upside of 11.36% 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.”
Other equities research analysts also recently issued research reports about the company. Leerink Swann reaffirmed an “outperform” rating on shares of Humana in a report on Tuesday, June 21st. Credit Suisse Group AG reaffirmed a “hold” rating on shares of Humana in a report on Tuesday, June 28th. Argus reaffirmed a “hold” rating on shares of Humana in a report on Tuesday, August 23rd. Cantor Fitzgerald reaffirmed a “buy” rating on shares of Humana in a report on Monday, August 8th. Finally, Wolfe Research began coverage on Humana in a report on Tuesday, June 28th. They issued 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 assigned a buy rating to the stock. Humana has a consensus rating of “Buy” and a consensus price target of $201.00.
Shares of Humana (NYSE:HUM) opened at 177.80 on Tuesday. Humana has a 52 week low of $150.00 and a 52 week high of $191.65. The firm has a market capitalization of $26.50 billion, a PE ratio of 27.32 and a beta of 0.90. The company’s 50 day moving average price is $176.90 and its 200-day moving average price is $176.10.
Humana (NYSE:HUM) last issued its quarterly earnings results on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.23 by $0.07. The business had revenue of $14 billion for the quarter, compared to the consensus estimate of $13.59 billion. Humana had a return on equity of 11.11% and a net margin of 1.76%. The firm’s quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.67 earnings per share. On average, equities research analysts expect that Humana will post $9.24 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 28th. Stockholders of record on Thursday, October 13th will be paid a $0.29 dividend. The ex-dividend date is Tuesday, October 11th. This represents a $1.16 annualized dividend and a dividend yield of 0.65%. Humana’s dividend payout ratio is presently 18.18%.
Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in shares of Humana by 2.5% in the second quarter. Vanguard Group Inc. now owns 8,964,492 shares of the insurance provider’s stock valued at $1,612,532,000 after buying an additional 219,311 shares in the last quarter. BlackRock Institutional Trust Company N.A. increased its stake 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 valued at $702,976,000 after buying an additional 120,720 shares in the last quarter. Arrowgrass Capital Partners US LP increased its stake 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 valued at $526,685,000 after buying an additional 51,267 shares in the last quarter. Evercore Trust Company N.A. increased its stake 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 valued at $462,357,000 after buying an additional 75,126 shares in the last quarter. Finally, BlackRock Fund Advisors increased its stake 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 valued at $373,122,000 after buying an additional 51,378 shares in the last quarter. Institutional investors own 93.24% of the company’s stock.
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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