Traders Buy Large Volume of Call Options on Humana (NYSE:HUM)

Humana Inc. (NYSE:HUM) saw unusually large options trading on Tuesday. Stock investors bought 8,702 call options on the stock. This is an increase of approximately 43% compared to the average daily volume of 6,078 call options.

Humana Price Performance

HUM traded down $9.34 during midday trading on Tuesday, hitting $424.16. The stock had a trading volume of 979,995 shares, compared to its average volume of 1,663,244. The company has a market cap of $50.93 billion, a P/E ratio of 40.13, a price-to-earnings-growth ratio of 2.67 and a beta of 0.74. The business has a fifty day moving average of $389.75 and a 200 day moving average of $336.54. 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 1 year low of $163.11 and a 1 year high of $456.50.

Humana (NYSE:HUM) last posted its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, topping the consensus estimate of $7.27 by $0.34. The firm had revenue of $40.89 billion for the quarter, compared to the consensus estimate of $40.58 billion. Humana had a net margin of 0.88% and a return on equity of 11.20%. The business’s revenue was up 26.2% compared to the same quarter last year. During the same period last year, the firm posted $6.27 earnings per share. As a group, equities analysts forecast that Humana will post 9.00 earnings per share for the current fiscal year.

Humana Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Friday, October 30th will be given a $0.8850 dividend. This represents a $3.54 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Friday, October 30th. Humana’s dividend payout ratio (DPR) is presently 33.49%.

Trending Headlines about Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: BlackRock joint venture strengthens CenterWell strategy. Humana announced a new venture with funds managed by BlackRock to operate nearly 150 CenterWell Senior Primary Care clinics. BlackRock will hold the majority stake, while CenterWell will retain a minority interest, potentially providing Humana with additional capital and an asset-light structure for expanding senior-focused care. Humana Announces New Strategic Joint Venture with BlackRock to Manage CenterWell Senior Primary Care Clinics
• Positive Sentiment: Analysts raised their outlook for HUM. Mizuho increased its price target to $495 from $468 and maintained an “outperform” rating. Raymond James also upgraded Humana to “outperform” with a $520 target, suggesting analysts see meaningful upside based on improving Medicare Advantage trends and earnings prospects. Humana analyst forecasts
• Positive Sentiment: Medicare Advantage quality ratings improved. Humana said 95% of its members are now enrolled in plans rated four stars or higher for 2027. The improvement could support future bonus payments and enhanced benefits, although the largest financial benefit may not be realized until 2028. Humana Hits 95% Four-Star Coverage
• Neutral Sentiment: Humana will report third-quarter 2026 results on November 6, making upcoming medical-cost trends, Medicare Advantage performance and guidance the next major catalysts. Humana Third-Quarter 2026 Results Date
• Negative Sentiment: UnitedHealth’s strong earnings and outlook lifted the managed-care sector, but its profit beat reportedly benefited partly from reserve releases. That may be limiting enthusiasm for Humana ahead of its own results, particularly after HUM’s sharp recent advance and elevated valuation.

Institutional Trading of Humana

Several hedge funds have recently added to or reduced their stakes in HUM. Chapin Davis Inc. bought a new position in shares of Humana during the third quarter valued at about $12,323,000. GAMMA Investing LLC lifted its stake in shares of Humana by 27.4% in the 3rd quarter. GAMMA Investing LLC now owns 1,996 shares of the insurance provider’s stock valued at $762,000 after acquiring an additional 429 shares during the last quarter. Gradient Investments LLC boosted its holdings in Humana by 2.5% during the 3rd quarter. Gradient Investments LLC now owns 13,738 shares of the insurance provider’s stock valued at $5,242,000 after acquiring an additional 330 shares during the period. Valeo Financial Advisors LLC boosted its holdings in Humana by 15.3% during the 3rd quarter. Valeo Financial Advisors LLC now owns 814 shares of the insurance provider’s stock valued at $310,000 after acquiring an additional 108 shares during the period. Finally, Vista Investment Partners LLC bought a new position in Humana during the 3rd quarter worth approximately $3,254,000. 92.38% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on HUM shares. Raymond James Financial raised shares of Humana from a “market perform” rating to an “outperform” rating and set a $520.00 target price on the stock in a research note on Monday. Lake Street Capital assumed coverage on shares of Humana in a research note on Thursday, July 30th. They issued a “buy” rating for the company. HSBC lowered shares of Humana to a “hold” rating in a report on Thursday, July 30th. Oppenheimer raised their price objective on shares of Humana from $475.00 to $525.00 and gave the company an “outperform” rating in a research report on Monday. Finally, Cantor Fitzgerald raised shares of Humana from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $300.00 to $460.00 in a report on Wednesday, October 7th. Twenty-one investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Humana has a consensus rating of “Moderate Buy” and an average target price of $453.30.

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.