Humana (NYSE:HUM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “Shares of Humana have outperformed the industry year to date. The insurer is well-poised for growth on its strong government business. Its top line has been witnessing an uptrend for the past several years. Sufficient generation of cash flow has helped the company take up many capital deployment initiatives aimed at enhancing its shareholders’ value. Humana’s sound balance sheet and a disciplined capital management remain major tailwinds. Following better-than-expected first-quarter results, the company provided a strong guidance for 2018. Also, the company has exited the individual commercial business effective Jan 1, 2018. Rising level of expenses persistently weighs on the bottom line. With respect to quarterly results, Humana’s first-quarter bottom line beat estimates on a favorable current-year medical utilization in Retail segment relative, lower tax rate and a positive impact of share buybacks.”
A number of other equities analysts have also issued reports on HUM. Cantor Fitzgerald reissued a “hold” rating and set a $250.00 price target on shares of Humana in a research report on Wednesday, February 7th. Credit Suisse Group raised shares of Humana from a “neutral” rating to an “outperform” rating and reduced their price target for the stock from $264.90 to $246.00 in a research report on Thursday, February 8th. Leerink Swann raised their price target on shares of Humana from $280.00 to $300.00 and gave the stock an “outperform” rating in a research report on Thursday, February 8th. Oppenheimer raised their price target on shares of Humana from $275.00 to $305.00 and gave the stock an “outperform” rating in a research report on Thursday, February 8th. Finally, Deutsche Bank raised their price target on shares of Humana from $259.00 to $270.00 and gave the stock a “hold” rating in a research report on Friday, February 9th. Seven analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $280.00.
Humana opened at $294.41 on Friday, according to MarketBeat.com. Humana has a 12-month low of $223.40 and a 12-month high of $299.85. The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 0.47. The company has a market cap of $40.53 billion, a price-to-earnings ratio of 23.94, a price-to-earnings-growth ratio of 1.53 and a beta of 0.95.
Humana (NYSE:HUM) last posted its quarterly earnings results on Wednesday, May 2nd. The insurance provider reported $3.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.21 by $0.15. Humana had a net margin of 3.36% and a return on equity of 16.74%. The company had revenue of $14.28 billion during the quarter, compared to analyst estimates of $14.22 billion. During the same period last year, the firm posted $2.75 EPS. analysts expect that Humana will post 13.99 EPS for the current year.
In related news, CEO Bruce D. Broussard sold 17,604 shares of Humana stock in a transaction on Thursday, May 3rd. The shares were sold at an average price of $286.17, for a total value of $5,037,736.68. Following the sale, the chief executive officer now owns 89,259 shares of the company’s stock, valued at approximately $25,543,248.03. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Cynthia H. Zipperle sold 1,196 shares of Humana stock in a transaction on Friday, March 9th. The shares were sold at an average price of $273.33, for a total transaction of $326,902.68. Following the completion of the sale, the senior vice president now directly owns 7,771 shares in the company, valued at approximately $2,124,047.43. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 69,885 shares of company stock valued at $19,601,498. Insiders own 0.60% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in HUM. Old Mutual Global Investors UK Ltd. grew its stake in Humana by 213.1% in the 1st quarter. Old Mutual Global Investors UK Ltd. now owns 727,057 shares of the insurance provider’s stock valued at $195,454,000 after acquiring an additional 494,826 shares during the period. Ceredex Value Advisors LLC acquired a new stake in Humana in the 1st quarter valued at $107,093,000. Massachusetts Financial Services Co. MA grew its stake in Humana by 80.1% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 741,942 shares of the insurance provider’s stock valued at $199,454,000 after acquiring an additional 329,956 shares during the period. Virtus Fund Advisers LLC grew its stake in Humana by 116.8% in the 4th quarter. Virtus Fund Advisers LLC now owns 423,275 shares of the insurance provider’s stock valued at $105,171,000 after acquiring an additional 228,050 shares during the period. Finally, BlackRock Inc. grew its stake in Humana by 1.7% in the 1st quarter. BlackRock Inc. now owns 12,186,387 shares of the insurance provider’s stock valued at $3,276,068,000 after acquiring an additional 198,588 shares during the period. 93.46% of the stock is currently owned by hedge funds and other institutional investors.
Humana Inc, together with its subsidiaries, operates as a health and well-being company in the United States. The company operates through four segments: Retail; Group and Specialty; Healthcare Services; and Individual Commercial. The Retail segment offers Medicare and supplemental benefit plans to individuals or through group accounts.
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