Humana Inc. Receives Mixed Analyst Ratings and Price Targets

Shares of Humana Inc. (NYSE:HUM) have been assigned an average recommendation of “Hold” by analysts covering the firm. According to data from Marketbeat, out of nineteen analysts, two have issued sell ratings, nine have given hold ratings, and eight have rated the stock as a buy. The average twelve-month price target among these analysts stands at approximately $295.94.

Recent evaluations by various research analysts highlight differing perspectives on the stock. On October 3, Piper Sandler revised its price target for Humana from $288.00 to $272.00 while maintaining a “neutral” rating. Conversely, Guggenheim reaffirmed a “buy” rating for the shares. In a notable shift, The Goldman Sachs Group reduced its target price from $235.00 to $215.00, assigning a sell rating in its latest report.

Meanwhile, Sanford C. Bernstein has increased its price target from $269.00 to $341.00, citing an “outperform” rating. Wells Fargo & Company also raised its target, now set at $347.00, while maintaining an “overweight” rating as of October 7.

Stock Performance and Financial Highlights

As of Wednesday, shares of Humana opened at $237.85. The company currently showcases a debt-to-equity ratio of 0.69, with both a current and quick ratio of 1.95. Humana’s market capitalization is approximately $28.61 billion, with a price-to-earnings (P/E) ratio of 18.25. Its 52-week range has seen a low of $206.87 and a high of $315.35.

In its latest quarterly earnings report released on November 5, Humana reported earnings per share of $3.24, exceeding analyst expectations of $2.95 by $0.29. The company achieved revenue of $32.65 billion, surpassing forecasts of $31.99 billion. This marked an 11.1% increase in revenue compared to the same quarter the previous year, although earnings per share had decreased from $4.16 in the prior year.

Dividend Announcement and Institutional Activity

Humana has announced a quarterly dividend of $0.885 per share, payable on January 30, 2024, to shareholders of record on December 26, 2023. This represents an annualized dividend of $3.54 and a dividend yield of 1.5%. The company’s dividend payout ratio stands at 33.18%.

Institutional investors have also adjusted their holdings in Humana. UBS Asset Management reported a 16.2% increase in its holdings during the first quarter, now owning 1,136,538 shares valued at $300.73 million. Additionally, Focus Partners Wealth increased its position by 104.2%, now holding 6,429 shares worth approximately $1.70 million. Other institutions, including Circle Wealth Management and Kera Capital Partners Inc., have also made notable investments, reflecting a strong interest in the company.

As of now, institutional investors collectively hold 92.38% of Humana’s stock, indicating robust institutional confidence in the company’s future performance.

Humana Inc. operates primarily in the United States, offering medical and specialty insurance products through its Insurance and CenterWell segments. The company provides medical and supplemental benefit plans to individuals, alongside contracts with the Centers for Medicare and Medicaid Services and various state programs.