Humana (NYSE:HUM) Shares Gap Down on Analyst Downgrade

Shares of Humana Inc. (NYSE:HUM) gapped down before the market opened on Tuesday after Truist Financial lowered their price target on the stock from $325.00 to $305.00. The stock had previously closed at $252.86, but opened at $244.43. Truist Financial currently has a hold rating on the stock. Humana shares last traded at $235.74, with a volume of 345,626 shares.

HUM has been the subject of several other reports. Barclays upped their price objective on Humana from $270.00 to $322.00 and gave the stock an “equal weight” rating in a research report on Friday, April 11th. StockNews.com upgraded Humana from a “hold” rating to a “buy” rating in a research report on Friday, May 9th. Guggenheim began coverage on Humana in a research report on Wednesday, April 9th. They set a “buy” rating and a $326.00 price objective for the company. Mizuho upped their price objective on Humana from $305.00 to $316.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 9th. Finally, Royal Bank of Canada restated an “outperform” rating and set a $283.00 price objective on shares of Humana in a research report on Wednesday, February 12th. Seventeen research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, Humana currently has a consensus rating of “Hold” and a consensus target price of $286.81.

Institutional Investors Weigh In On Humana

Several large investors have recently added to or reduced their stakes in the business. Transcend Capital Advisors LLC boosted its holdings in Humana by 399.7% in the fourth quarter. Transcend Capital Advisors LLC now owns 3,643 shares of the insurance provider’s stock worth $924,000 after acquiring an additional 2,914 shares in the last quarter. Retirement Systems of Alabama boosted its holdings in Humana by 735.9% in the fourth quarter. Retirement Systems of Alabama now owns 219,002 shares of the insurance provider’s stock worth $55,563,000 after acquiring an additional 192,801 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Humana by 7.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 964,926 shares of the insurance provider’s stock worth $244,811,000 after acquiring an additional 65,735 shares in the last quarter. Secure Asset Management LLC bought a new position in Humana in the fourth quarter worth approximately $244,000. Finally, denkapparat Operations GmbH bought a new position in Humana in the fourth quarter worth approximately $323,000. Institutional investors and hedge funds own 92.38% of the company’s stock.

Humana Trading Up 0.6%

The company has a debt-to-equity ratio of 0.68, a current ratio of 1.76 and a quick ratio of 1.76. The firm has a fifty day simple moving average of $263.70 and a 200-day simple moving average of $269.85. The firm has a market cap of $27.79 billion, a P/E ratio of 23.14, a price-to-earnings-growth ratio of 2.05 and a beta of 0.49.

Humana (NYSE:HUM) last posted its earnings results on Wednesday, April 30th. The insurance provider reported $11.58 earnings per share for the quarter, beating analysts’ consensus estimates of $10.07 by $1.51. Humana had a return on equity of 11.70% and a net margin of 1.02%. The company had revenue of $32.11 billion for the quarter, compared to analyst estimates of $32 billion. During the same quarter last year, the company earned $7.23 earnings per share. The company’s revenue for the quarter was up 8.4% on a year-over-year basis. On average, equities research analysts expect that Humana Inc. will post 16.47 earnings per share for the current year.

Humana Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, June 27th will be issued a dividend of $0.885 per share. The ex-dividend date of this dividend is Friday, June 27th. This represents a $3.54 dividend on an annualized basis and a yield of 1.54%. Humana’s dividend payout ratio (DPR) is currently 25.04%.

Humana Company Profile

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.