Humana (NYSE:HUM) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Humana to “Hold” from “Buy,” bringing its view in line with the broader analyst consensus. The consensus price target is $408.61, with 15 Buy, 14 Hold and one Sell rating.
• Humana shares opened at $397.09, up 4.4%, after the company reported quarterly EPS of $7.61, exceeding estimates of $7.27. Revenue rose 26.2% year over year to $40.89 billion, also slightly above expectations.
• Institutional investors hold 92.38% of Humana’s stock, with BlackRock and Pzena Investment Management among firms establishing major new positions.

Humana (NYSE:HUM - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday, Wall Street Zen reports.

Several other equities analysts have also recently commented on HUM. Royal Bank Of Canada increased their target price on Humana from $246.00 to $415.00 and gave the company a "sector perform" rating in a research note on Thursday, July 9th. UBS Group initiated coverage on shares of Humana in a report on Thursday, July 30th. They set a "buy" rating for the company. JPMorgan Chase & Co. upped their target price on shares of Humana from $316.00 to $393.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Lake Street Capital assumed coverage on Humana in a research note on Thursday, July 30th. They issued a "buy" rating for the company. Finally, Oppenheimer restated an "outperform" rating and set a $405.00 price objective on shares of Humana in a research note on Thursday, July 30th. Fifteen research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $408.61.

Humana Stock Up 4.4%

Shares of Humana stock opened at $397.09 on Friday. The business has a 50-day moving average of $386.52 and a 200-day moving average of $317.80. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74. The company has a market capitalization of $47.68 billion, a PE ratio of 37.57, a P/E/G ratio of 2.46 and a beta of 0.74. Humana has a 1-year low of $163.11 and a 1-year high of $428.88.

Humana (NYSE:HUM - Get Free Report) last announced its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.27 by $0.34. Humana had a return on equity of 11.20% and a net margin of 0.88%.The business had revenue of $40.89 billion for the quarter, compared to analyst estimates of $40.58 billion. During the same period in the previous year, the company earned $6.27 earnings per share. The company's revenue for the quarter was up 26.2% compared to the same quarter last year. As a group, equities analysts forecast that Humana will post 9 EPS for the current fiscal year.

Hedge Funds Weigh In On Humana

Several hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in Humana during the 2nd quarter valued at $4,138,160,000. Pzena Investment Management LLC acquired a new position in shares of Humana during the second quarter valued at $1,749,014,000. Capital International Investors increased its holdings in shares of Humana by 113.9% during the fourth quarter. Capital International Investors now owns 5,818,008 shares of the insurance provider's stock valued at $1,490,239,000 after purchasing an additional 3,097,571 shares during the period. Norges Bank bought a new stake in shares of Humana during the fourth quarter valued at about $456,632,000. Finally, Franklin Resources Inc. raised its stake in shares of Humana by 914.5% during the fourth quarter. Franklin Resources Inc. now owns 1,255,665 shares of the insurance provider's stock valued at $321,613,000 after purchasing an additional 1,131,893 shares in the last quarter. 92.38% of the stock is currently owned by institutional investors and hedge funds.

Humana Company Profile

Humana Inc NYSE: HUM is a U.S.-based health insurance and health care services company focused primarily on government-sponsored programs. Its offerings include Medicare Advantage plans, Medicare prescription drug plans, Medicaid coverage and specialty insurance products, serving individuals, employers and government organizations.

Through its CenterWell business, Humana also provides senior-focused primary care, pharmacy services and home health care. These operations are designed to support coordinated care for older adults and other members with ongoing health care needs.

Humana was founded in 1961 as a nursing-home company and later expanded into hospital ownership before shifting its focus toward health insurance.

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