Zacks Investment Research Downgrades Humana Inc. (HUM) to Hold
Humana Inc. (NYSE:HUM) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Humana is well poised to grow on its strong government business. Its top-line has been witnessing an uptrend from past many years. Sufficient generation of cash flow has helped the company take up several capital deployment initiatives aimed at enhancing shareholders’ value. Humana’s sound balance sheet and disciplined capital management remains a positive. Following its strong second-quarter 2017 results, it raised its 2017 adjusted EPS guidance. The company has also seen the Zacks Consensus Estimate for the current year earnings being revised upward in last 30 days. Although the shares have performed in line with the industry in a year's time, its strong fundamentals are likely to help the stock in gaining momentum going forward. However, the company's individual commercial business has remained a drag over past few years. The company will release third quarter results on Nov 8, 2017.”
HUM has been the subject of several other research reports. BidaskClub upgraded shares of Humana from a “sell” rating to a “hold” rating in a research note on Wednesday, August 23rd. ValuEngine downgraded shares of Humana from a “buy” rating to a “hold” rating in a report on Tuesday, October 10th. Jefferies Group LLC reiterated a “hold” rating and issued a $257.00 price target on shares of Humana in a report on Friday, October 13th. J P Morgan Chase & Co downgraded shares of Humana from an “overweight” rating to a “neutral” rating and set a $253.00 price target for the company. in a report on Monday, October 9th. Finally, Morgan Stanley increased their price target on shares of Humana from $269.00 to $276.00 and gave the company an “overweight” rating in a report on Thursday, August 17th. Twelve equities research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. Humana has a consensus rating of “Buy” and an average price target of $253.90.
Humana (NYSE HUM) opened at 241.31 on Tuesday. The company’s 50-day moving average is $246.29 and its 200-day moving average is $236.33. Humana has a 52-week low of $165.03 and a 52-week high of $259.76. The firm has a market capitalization of $34.87 billion, a P/E ratio of 19.85 and a beta of 0.86.
Humana (NYSE:HUM) last released its earnings results on Wednesday, August 2nd. The insurance provider reported $3.49 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $3.08 by $0.41. Humana had a net margin of 3.37% and a return on equity of 15.85%. The company had revenue of $13.53 billion during the quarter, compared to analysts’ expectations of $13.61 billion. During the same quarter last year, the business earned $2.30 EPS. On average, analysts predict that Humana will post $11.57 EPS for the current year.
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In other news, insider Elizabeth D. Bierbower sold 9,786 shares of Humana stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $259.00, for a total transaction of $2,534,574.00. Following the completion of the sale, the insider now directly owns 18,042 shares in the company, valued at $4,672,878. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Bruce D. Broussard sold 12,000 shares of Humana stock in a transaction dated Friday, August 11th. The stock was sold at an average price of $251.88, for a total transaction of $3,022,560.00. Following the sale, the chief executive officer now owns 80,086 shares of the company’s stock, valued at $20,172,061.68. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 55,595 shares of company stock valued at $14,133,706. Insiders own 0.80% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. WFG Advisors LP grew its holdings in shares of Humana by 4.5% during the second quarter. WFG Advisors LP now owns 469 shares of the insurance provider’s stock worth $113,000 after buying an additional 20 shares in the last quarter. Acrospire Investment Management LLC purchased a new stake in shares of Humana during the second quarter worth about $120,000. Independent Portfolio Consultants Inc. grew its holdings in shares of Humana by 22.1% during the second quarter. Independent Portfolio Consultants Inc. now owns 519 shares of the insurance provider’s stock worth $125,000 after buying an additional 94 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Humana by 139.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 558 shares of the insurance provider’s stock worth $134,000 after buying an additional 325 shares in the last quarter. Finally, Fiduciary Trust Co. purchased a new stake in shares of Humana during the second quarter worth about $135,000. Institutional investors and hedge funds own 95.11% of the company’s stock.
Humana Company Profile
Humana Inc is a health and well-being company. The Company’s segments include Retail, Group and Specialty, Healthcare Services and Individual Commercial. The Retail segment consists of Medicare benefits, 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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