Humana (NYSE:HUM) Shares Gap Up on Analyst Upgrade

Humana Inc. (NYSE:HUM)’s share price gapped up prior to trading on Tuesday after Wells Fargo & Company raised their price target on the stock from $206.00 to $227.00. The stock had previously closed at $182.65, but opened at $202.00. Wells Fargo & Company currently has an equal weight rating on the stock. Humana shares last traded at $191.9550, with a volume of 1,785,125 shares traded.

Several other analysts have also recently commented on HUM. UBS Group reaffirmed a “neutral” rating on shares of Humana in a research report on Wednesday, February 25th. Guggenheim decreased their target price on Humana from $312.00 to $252.00 and set a “buy” rating for the company in a research report on Thursday, February 12th. The Goldman Sachs Group decreased their target price on Humana from $215.00 to $158.00 and set a “sell” rating for the company in a research report on Friday, February 13th. Deutsche Bank Aktiengesellschaft set a $180.00 target price on Humana and gave the stock a “hold” rating in a research report on Friday, February 13th. Finally, Jefferies Financial Group decreased their target price on Humana from $310.00 to $235.00 and set a “buy” rating for the company in a research report on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $223.13.

Insider Activity

In other news, insider Sanjay K. Shetty acquired 810 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The stock was acquired at an average cost of $185.21 per share, for a total transaction of $150,020.10. Following the completion of the acquisition, the insider owned 11,657 shares in the company, valued at approximately $2,158,992.97. The trade was a 7.47% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.20% of the company’s stock.

Key Humana News

Here are the key news stories impacting Humana this week:

• Positive Sentiment: CMS finalized a 2.48% increase to Medicare Advantage payments for 2027 (well above the 0.09% proposed figure), adding roughly $13B industrywide and improving Humana’s near?term revenue and margin outlook for its Medicare Advantage business. Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers – CNBC
• Positive Sentiment: Market reaction: Humana shares jumped roughly 12% on the news as investors reprice the company for stronger 2027 MA revenues; peers (UnitedHealth, CVS, Elevance) also rallied, reflecting a sector?wide re-rating. Humana (HUM) Stock Rockets 12% on Medicare Advantage Payment Rate Revelation
• Neutral Sentiment: Analyst and investor notes are comparing Humana to larger peers (UnitedHealth) to reassess which name offers better risk/reward after the CMS surprise; these analyses will influence flows but don’t change the underlying CMS-driven revenue boost. UnitedHealth (UNH) or Humana (HUM): Which Stock Is the Better Buy After CMS’ Surprise Rate Hike
• Neutral Sentiment: Company press: Humana released its 2025 Impact Report (corporate responsibility and care initiatives). Useful for brand/long-term positioning but unlikely to be the main driver of today’s move. Humana Releases 2025 Impact Report, Highlighting Progress Towards Simpler, More Affordable Care for People and Communities
• Neutral Sentiment: General market coverage and summaries (CNN/Yahoo/MSN/Benzinga) are amplifying the CMS decision and the stock move; they help momentum but don’t add new fundamental information. Humana shares surge 12% on 2027 Medicare rate boost; UNH, CVS rally – Yahoo Finance

Institutional Trading of Humana

Hedge funds and other institutional investors have recently modified their holdings of the company. Montag A & Associates Inc. raised its holdings in shares of Humana by 1,880.0% during the fourth quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider’s stock worth $25,000 after acquiring an additional 94 shares in the last quarter. CoreCap Advisors LLC raised its holdings in shares of Humana by 54.4% during the fourth quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider’s stock worth $27,000 after acquiring an additional 37 shares in the last quarter. Fideuram Asset Management Ireland dac purchased a new stake in shares of Humana during the fourth quarter worth $27,000. Reflection Asset Management purchased a new stake in shares of Humana during the fourth quarter worth $29,000. Finally, Rosenberg Matthew Hamilton raised its holdings in shares of Humana by 136.0% during the fourth quarter. Rosenberg Matthew Hamilton now owns 118 shares of the insurance provider’s stock worth $30,000 after acquiring an additional 68 shares in the last quarter. 92.38% of the stock is currently owned by hedge funds and other institutional investors.

Humana Trading Up 5.4%

The company has a debt-to-equity ratio of 0.70, a current ratio of 2.00 and a quick ratio of 2.00. The company has a fifty day moving average of $180.71 and a 200-day moving average of $234.30. The firm has a market capitalization of $23.11 billion, a PE ratio of 19.59, a price-to-earnings-growth ratio of 1.90 and a beta of 0.44.

Humana (NYSE:HUM) last posted its earnings results on Wednesday, February 11th. The insurance provider reported ($3.96) earnings per share for the quarter, beating the consensus estimate of ($4.01) by $0.05. Humana had a return on equity of 11.43% and a net margin of 0.92%.The company had revenue of $32.64 billion for the quarter, compared to analyst estimates of $32.08 billion. During the same period last year, the company earned ($2.16) earnings per share. The business’s revenue was up 11.3% compared to the same quarter last year. Humana has set its FY 2026 guidance at 9.000-9.000 EPS. On average, sell-side analysts anticipate that Humana Inc. will post 16.47 earnings per share for the current fiscal year.

Humana Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, March 27th will be issued a dividend of $0.885 per share. This represents a $3.54 annualized dividend and a yield of 1.8%. The ex-dividend date is Friday, March 27th. Humana’s dividend payout ratio (DPR) is 36.05%.

About Humana

Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.

In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.