Humana (NYSE:HUM) Hits New 1-Year High – Still a Buy?

Shares of Humana Inc. (NYSE:HUM) reached a new 52-week high on Wednesday . The company traded as high as $315.50 and last traded at $312.4950, with a volume of 6460 shares. The stock had previously closed at $310.55.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on HUM. Leerink Partners raised their target price on shares of Humana from $185.00 to $255.00 and gave the stock a “market perform” rating in a research report on Thursday, April 30th. Wolfe Research lowered shares of Humana from a “strong-buy” rating to a “peer perform” rating in a research report on Wednesday. JPMorgan Chase & Co. lifted their price target on Humana from $180.00 to $214.00 and gave the stock a “neutral” rating in a research note on Friday, May 1st. Barclays boosted their target price on shares of Humana from $176.00 to $180.00 and gave the company an “equal weight” rating in a research note on Thursday, April 30th. Finally, William Blair started coverage on shares of Humana in a research note on Wednesday. They issued an “outperform” rating for the company. Nine research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $260.83.

Humana Stock Performance

The company has a market capitalization of $36.39 billion, a PE ratio of 32.42, a PEG ratio of 2.83 and a beta of 0.68. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.77 and a current ratio of 1.77. The company has a 50 day moving average price of $215.40 and a 200 day moving average price of $227.07.

Humana (NYSE:HUM) last released its earnings results on Wednesday, April 29th. The insurance provider reported $10.31 EPS for the quarter, beating the consensus estimate of $9.97 by $0.34. The company had revenue of $39.65 billion during the quarter, compared to analysts’ expectations of $39.37 billion. Humana had a return on equity of 10.45% and a net margin of 0.82%.The business’s revenue was up 23.5% on a year-over-year basis. During the same period in the prior year, the business posted $11.58 EPS. Humana has set its FY 2026 guidance at 9.000- EPS. Equities analysts forecast that Humana Inc. will post 9 EPS for the current year.

Humana Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, June 26th will be given a $0.885 dividend. The ex-dividend date of this dividend is Friday, June 26th. This represents a $3.54 annualized dividend and a yield of 1.2%. Humana’s dividend payout ratio (DPR) is currently 37.86%.

Insiders Place Their Bets

In related news, insider Sanjay K. Shetty bought 810 shares of the company’s stock in a transaction on Monday, February 23rd. The shares were purchased at an average cost of $185.21 per share, with a total value of $150,020.10. Following the completion of the transaction, the insider directly owned 11,657 shares of the company’s stock, valued at approximately $2,158,992.97. This represents a 7.47% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Humana

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Humana by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 14,261,860 shares of the insurance provider’s stock valued at $3,652,890,000 after purchasing an additional 106,030 shares during the period. Capital International Investors raised its position in shares of Humana by 113.9% in the fourth quarter. Capital International Investors now owns 5,818,008 shares of the insurance provider’s stock valued at $1,490,239,000 after purchasing an additional 3,097,571 shares during the period. Pzena Investment Management LLC raised its position in shares of Humana by 34.3% in the first quarter. Pzena Investment Management LLC now owns 5,470,982 shares of the insurance provider’s stock valued at $948,614,000 after purchasing an additional 1,398,774 shares during the period. State Street Corp raised its position in shares of Humana by 1.8% in the fourth quarter. State Street Corp now owns 5,462,549 shares of the insurance provider’s stock valued at $1,403,877,000 after purchasing an additional 97,211 shares during the period. Finally, Massachusetts Financial Services Co. MA raised its position in shares of Humana by 28.9% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 4,496,775 shares of the insurance provider’s stock valued at $1,151,759,000 after purchasing an additional 1,008,514 shares during the period. 92.38% of the stock is currently owned by institutional investors and hedge funds.

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.