Humana (NYSE:HUM) Shares Gap Down – Here’s Why

Shares of Humana Inc. (NYSE:HUM) gapped down prior to trading on Friday . The stock had previously closed at $271.30, but opened at $258.00. Humana shares last traded at $258.05, with a volume of 400,989 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms have recently commented on HUM. TD Cowen increased their price objective on Humana from $261.00 to $268.00 and gave the company a “hold” rating in a report on Monday, November 4th. Cantor Fitzgerald reiterated a “neutral” rating and issued a $290.00 price objective on shares of Humana in a report on Wednesday, February 12th. Wells Fargo & Company dropped their price objective on Humana from $387.00 to $290.00 and set an “overweight” rating on the stock in a report on Monday, November 4th. JPMorgan Chase & Co. dropped their price objective on Humana from $257.00 to $256.00 and set a “neutral” rating on the stock in a report on Tuesday, February 18th. Finally, Truist Financial increased their price objective on Humana from $260.00 to $290.00 and gave the company a “hold” rating in a report on Monday, January 6th. Nineteen equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $285.68.

Humana Stock Down 5.7 %

The firm has a 50 day simple moving average of $269.41 and a two-hundred day simple moving average of $290.00. The company has a market capitalization of $30.80 billion, a PE ratio of 25.71, a P/E/G ratio of 2.05 and a beta of 0.56. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.68.

Humana (NYSE:HUM) last posted its quarterly earnings results on Tuesday, February 11th. The insurance provider reported ($2.16) EPS for the quarter, beating the consensus estimate of ($2.26) by $0.10. Humana had a return on equity of 11.70% and a net margin of 1.02%. Research analysts expect that Humana Inc. will post 16.47 EPS for the current year.

Humana Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 25th. Stockholders of record on Friday, March 28th will be issued a $0.885 dividend. The ex-dividend date is Friday, March 28th. This represents a $3.54 annualized dividend and a dividend yield of 1.38%. Humana’s dividend payout ratio is currently 35.58%.

Insider Activity

In other news, insider Timothy S. Huval sold 3,703 shares of the firm’s stock in a transaction that occurred on Tuesday, December 31st. The stock was sold at an average price of $256.26, for a total value of $948,930.78. Following the completion of the sale, the insider now directly owns 8,181 shares of the company’s stock, valued at $2,096,463.06. This trade represents a 31.16 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.32% of the company’s stock.

Institutional Trading of Humana

Several hedge funds have recently modified their holdings of HUM. Creative Financial Designs Inc. ADV raised its holdings in Humana by 244.0% during the third quarter. Creative Financial Designs Inc. ADV now owns 86 shares of the insurance provider’s stock worth $27,000 after purchasing an additional 61 shares during the last quarter. Ashton Thomas Securities LLC purchased a new stake in Humana during the third quarter worth $31,000. Your Advocates Ltd. LLP boosted its position in Humana by 81.8% during the third quarter. Your Advocates Ltd. LLP now owns 100 shares of the insurance provider’s stock worth $32,000 after purchasing an additional 45 shares in the last quarter. FPC Investment Advisory Inc. purchased a new stake in Humana during the fourth quarter worth $27,000. Finally, Centricity Wealth Management LLC purchased a new stake in Humana during the fourth quarter worth $30,000. 92.38% of the stock is owned by institutional investors and hedge funds.

About Humana

Humana Inc, together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits.