Investors Buy Humana Inc. (HUM) on Weakness Following Analyst Downgrade
Traders purchased shares of Humana Inc. (NYSE:HUM) on weakness during trading hours on Thursday after Royal Bank Of Canada lowered their price target on the stock from $222.00 to $217.00. $297.61 million flowed into the stock on the tick-up and $272.80 million flowed out of the stock on the tick-down, for a money net flow of $24.81 million into the stock. Of all equities tracked, Humana had the 15th highest net in-flow for the day. Humana traded down ($9.09) for the day and closed at $168.44
Several other equities research analysts have also recently commented on the company. Jefferies Group raised Humana from a “hold” rating to a “buy” rating and boosted their target price for the stock from $158.89 to $210.00 in a report on Monday, July 18th. JPMorgan Chase & Co. cut Humana from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $196.00 to $150.00 in a report on Friday, July 8th. Argus reissued a “hold” rating on shares of Humana in a report on Tuesday, August 23rd. Wolfe Research started coverage on Humana in a report on Tuesday, June 28th. They set a “market perform” rating and a $244.00 target price on the stock. Finally, Credit Suisse Group AG boosted their target price on Humana from $175.00 to $188.00 and gave the stock a “neutral” rating in a report on Tuesday, August 16th. Seven analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Humana currently has an average rating of “Buy” and an average price target of $200.50.
Several large investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC raised its stake in Humana by 246.3% in the first quarter. Renaissance Technologies LLC now owns 446,000 shares of the insurance provider’s stock valued at $81,596,000 after buying an additional 317,200 shares during the last quarter. Arrowgrass Capital Partners US LP raised its stake in 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 during the last quarter. Retirement Systems of Alabama raised its stake in Humana by 0.7% in the second quarter. Retirement Systems of Alabama now owns 75,981 shares of the insurance provider’s stock valued at $13,667,000 after buying an additional 531 shares during the last quarter. Bank of Montreal Can acquired a new stake in Humana during the second quarter valued at about $14,049,000. Finally, Orbis Allan Gray Ltd acquired a new stake in Humana during the first quarter valued at about $38,209,000. 93.24% of the stock is owned by institutional investors and hedge funds.
The stock’s 50 day moving average is $176.12 and its 200-day moving average is $175.83. The firm has a market capitalization of $25.26 billion, a price-to-earnings ratio of 26.04 and a beta of 0.90.
Humana (NYSE:HUM) last posted its earnings results on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.23 by $0.07. Humana had a return on equity of 11.11% and a net margin of 1.76%. The firm earned $14 billion during the quarter, compared to analysts’ expectations of $13.59 billion. During the same period in the previous year, the firm earned $1.67 earnings per share. The company’s revenue was up 2.0% on a year-over-year basis. On average, equities research analysts forecast that Humana Inc. will post $9.24 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Thursday, October 13th will be paid a $0.29 dividend. The ex-dividend date of this dividend is Tuesday, October 11th. This represents a $1.16 dividend on an annualized basis and a yield of 0.68%. Humana’s payout ratio is 18.18%.
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.
Receive News & Stock Ratings for Humana Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Humana Inc. and related stocks with our FREE daily email newsletter.