Humana (NYSE:HUM) Upgraded at Robert W. Baird

Humana (NYSE:HUM) was upgraded by equities researchers at Robert W. Baird from a “hold” rating to an “outperform” rating in a research note issued to investors on Friday, Marketbeat Ratings reports. The firm currently has a $596.00 price target on the insurance provider’s stock. Robert W. Baird’s price objective points to a potential upside of 38.34% from the company’s previous close.

Several other analysts have also commented on HUM. Bank of America raised Humana from a “neutral” rating to a “buy” rating and set a $500.00 price objective on the stock in a report on Wednesday, July 29th. Royal Bank Of Canada increased their target price on Humana from $246.00 to $415.00 and gave the company a “sector perform” rating in a research report on Thursday, July 9th. Citigroup started coverage on shares of Humana in a research note on Friday. They issued a “buy” rating on the stock. Barclays boosted their price target on shares of Humana from $515.00 to $582.00 and gave the stock an “overweight” rating in a report on Friday. Finally, Raymond James Financial set a $460.00 price objective on shares of Humana in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $445.74.

Humana Trading Up 11.3%

Shares of Humana stock opened at $430.84 on Friday. The firm has a 50-day simple moving average of $388.59 and a two-hundred day simple moving average of $333.55. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.74 and a current ratio of 1.74. Humana has a fifty-two week low of $163.11 and a fifty-two week high of $456.50. The company has a market cap of $51.74 billion, a P/E ratio of 40.76, a price-to-earnings-growth ratio of 2.39 and a beta of 0.74.

Humana (NYSE:HUM) last posted its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, beating analysts’ consensus estimates of $7.27 by $0.34. The firm had revenue of $40.89 billion for the quarter, compared to analysts’ expectations of $40.58 billion. Humana had a return on equity of 11.20% and a net margin of 0.88%. The company’s quarterly revenue was up 26.2% on a year-over-year basis. During the same period last year, the firm earned $6.27 EPS. As a group, equities analysts predict that Humana will post 9.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Johnson Financial Group Inc. purchased a new stake in shares of Humana during the second quarter worth $26,000. Trust Co. of Vermont purchased a new position in shares of Humana in the second quarter worth about $28,000. Bogart Wealth LLC boosted its position in Humana by 192.0% during the second quarter. Bogart Wealth LLC now owns 73 shares of the insurance provider’s stock worth $29,000 after acquiring an additional 48 shares during the last quarter. MidFirst Bank acquired a new position in Humana during the second quarter worth about $35,000. Finally, Highland Investment Advisors LLC purchased a new stake in Humana during the 2nd quarter valued at about $43,000. 92.38% of the stock is owned by institutional investors and hedge funds.

Humana News Summary

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Improved Medicare Advantage ratings: Humana reported that approximately 95% of its Medicare Advantage members are enrolled in plans rated four stars or higher for 2027, including 42% in 4.5-star plans. Six contracts received 4.5 stars and 12 received four stars, making Humana one of the clearest beneficiaries of the CMS release. Humana Announces Improved CMS Star Ratings
• Positive Sentiment: Potential earnings benefit: The higher ratings could improve Humana’s access to quality bonus payments and support enrollment during the annual Medicare Advantage enrollment period. Analysts described the company as the largest beneficiary of the 2027 ratings and Baird upgraded the stock to Buy. Reuters Medicare Star Ratings Report
• Positive Sentiment: Guidance maintained: Humana reaffirmed its full-year 2026 adjusted earnings outlook and raised its outlook for 2028 Stars-related revenue, reducing concerns that the ratings recovery would not translate into financial improvement. Humana Reaffirms 2026 Earnings Outlook
• Neutral Sentiment: Valuation and competition remain considerations: The rally has pushed HUM close to its 52-week high, while one comparison said UnitedHealth offers a more diversified business, better Medicare Advantage profitability and a lower valuation. Investors may therefore focus on whether the ratings improvement produces sustainable margin expansion.
• Negative Sentiment: Member benefit reductions: Humana reportedly plans to cut or eliminate Part B premium givebacks for 62% of affected members in 2027. That could disappoint some enrollees and create competitive or retention risks, even though the overall CMS ratings news was favorable. Humana Part B Giveback Report

About Humana

Humana Inc is a health and well-being company headquartered in Louisville, Kentucky. Founded in 1961, the company began as a nursing home operator before expanding into hospitals and health insurance. Today, Humana primarily provides health insurance products and healthcare services for older adults, individuals, military families and other members in the United States.

Humana’s insurance business offers Medicare Advantage, Medicare Supplement and prescription drug plans, as well as Medicaid coverage in select markets.