Humana Inc. (HUM) Raised to Buy at Zacks Investment Research
Humana Inc. (NYSE:HUM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm presently has a $198.00 target price on the insurance provider’s stock. Zacks Investment Research’s price target suggests a potential upside of 12.10% from the company’s previous close.
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 analysts have also issued reports about the stock. JPMorgan Chase & Co. lowered shares of Humana from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $196.00 to $150.00 in a research note on Friday, July 8th. Evercore ISI began coverage on shares of Humana in a research note on Thursday, September 22nd. They set a “buy” rating and a $200.00 price objective for the company. Argus reaffirmed a “hold” rating on shares of Humana in a research note on Tuesday, August 23rd. Wolfe Research raised shares of Humana to an “outperform” rating and set a $192.00 price objective for the company in a research note on Thursday, July 21st. Finally, Credit Suisse Group AG upped their price objective on shares of Humana from $160.00 to $170.00 and gave the company a “neutral” rating in a research note on Thursday, July 21st. Five research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus price target of $201.00.
Humana (NYSE:HUM) traded up 0.27% during midday trading on Tuesday, reaching $177.11. 448,694 shares of the company’s stock traded hands. Humana has a 52 week low of $150.00 and a 52 week high of $191.65. The company’s 50-day moving average price is $177.02 and its 200 day moving average price is $176.15. The stock has a market capitalization of $26.40 billion, a price-to-earnings ratio of 27.21 and a beta of 0.90.
Humana (NYSE:HUM) last posted its quarterly earnings data on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.23 by $0.07. Humana had a net margin of 1.76% and a return on equity of 11.11%. The company earned $14 billion during the quarter, compared to analyst estimates of $13.59 billion. During the same quarter last year, the firm posted $1.67 EPS. The business’s revenue for the quarter was up 2.0% on a year-over-year basis. On average, equities research analysts expect that Humana will post $9.24 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Thursday, October 13th will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Tuesday, October 11th. This represents a $1.16 annualized dividend and a yield of 0.66%. Humana’s dividend payout ratio (DPR) is presently 18.18%.
Large investors have recently made changes to their positions in the company. Point72 Asia Hong Kong Ltd bought a new stake in shares of Humana during the second quarter valued at about $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 during 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 during the last quarter. 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 during the last quarter. Finally, Sterling Capital Management LLC bought a new stake in shares of Humana during the second quarter valued at about $251,000. Institutional investors and hedge funds own 93.24% of the company’s stock.
Humana Company Profile
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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