Zacks Investment Research upgraded shares of Humana Inc. (NYSE:HUM) from a hold rating to a buy rating in a report issued on Tuesday morning. Zacks Investment Research currently has $198.00 price objective on the insurance provider’s stock.
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.”
HUM has been the topic of several other reports. Argus restated a hold rating on shares of Humana in a report on Tuesday, August 23rd. JPMorgan Chase & Co. lowered shares of Humana from an overweight rating to a neutral rating and cut their price target for the stock from $196.00 to $150.00 in a research note on Friday, July 8th. RBC Capital Markets reiterated a buy rating and set a $224.00 price target (up from $220.00) on shares of Humana in a research note on Friday, July 22nd. Jefferies Group upgraded shares of Humana from a hold rating to a buy rating and boosted their price target for the stock from $158.89 to $210.00 in a research note on Monday, July 18th. Finally, Wolfe Research assumed coverage on shares of Humana in a research note on Tuesday, June 28th. They set a market perform rating and a $244.00 price target on the stock. Five equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. The company currently has an average rating of Buy and an average price target of $201.00.
Humana (NYSE:HUM) traded up 0.10% during mid-day trading on Tuesday, hitting $177.39. 246,893 shares of the stock were exchanged. The company has a 50 day moving average of $176.95 and a 200 day moving average of $176.09. The firm has a market cap of $26.44 billion, a P/E ratio of 27.25 and a beta of 0.90. Humana has a 12-month low of $150.00 and a 12-month high of $191.65.
Humana (NYSE:HUM) last issued its quarterly earnings data on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.23 by $0.07. The firm had revenue of $14 billion for the quarter, compared to analyst estimates of $13.59 billion. Humana had a net margin of 1.76% and a return on equity of 11.11%. Humana’s revenue was up 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.67 EPS. On average, equities analysts anticipate that Humana will post $9.24 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 28th. Stockholders of record on Thursday, October 13th will be issued a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 0.65%. The ex-dividend date is Tuesday, October 11th. Humana’s payout ratio is currently 18.18%.
Several large investors have recently bought and sold shares of HUM. Point72 Asia Hong Kong Ltd purchased a new stake in Humana during the second quarter valued at $126,000. Daiwa SB Investments Ltd. increased its stake in shares of Humana by 7.5% in the second quarter. Daiwa SB Investments Ltd. now owns 720 shares of the insurance provider’s stock valued at $132,000 after buying an additional 50 shares in the last quarter. Bessemer Group Inc. increased its stake in shares of Humana by 392.6% in the first quarter. Bessemer Group Inc. now owns 1,000 shares of the insurance provider’s stock valued at $183,000 after buying an additional 797 shares in the last quarter. Fulton Bank N.A. bought a new stake in shares of Humana during the third quarter valued at $229,000. Finally, BB&T Securities LLC increased its stake in shares of Humana by 13.6% in the second quarter. BB&T Securities LLC now owns 1,374 shares of the insurance provider’s stock valued at $247,000 after buying an additional 165 shares in the last quarter. 93.24% of the stock is owned by institutional investors and hedge funds.
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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