Humana (NYSE:HUM) Upgraded to Outperform at Raymond James Financial

Key Points

• Raymond James upgraded Humana to “Outperform” from “Market Perform” and set a $520 price target, implying about 20.7% upside. Other analysts have also issued bullish views, giving Humana a consensus “Moderate Buy” rating and an average target of $448.35.
• Humana reported quarterly adjusted earnings of $7.61 per share, exceeding estimates of $7.27, while revenue rose 26.2% year over year to $40.89 billion.
• Humana shares opened at $430.84, near their 52-week high of $456.50, while institutional investors and hedge funds own approximately 92.38% of the company’s stock.

Humana (NYSE:HUM - Get Free Report) was upgraded by research analysts at Raymond James Financial from a "market perform" rating to an "outperform" rating in a report issued on Monday, MarketBeat.com reports. The brokerage currently has a $520.00 price objective on the insurance provider's stock. Raymond James Financial's price objective indicates a potential upside of 20.70% from the company's previous close.

Several other equities research analysts have also recently weighed in on HUM. UBS Group set a $596.00 target price on Humana in a research note on Friday. Bank of America raised shares of Humana from a "neutral" rating to a "buy" rating and set a $500.00 price objective on the stock in a report on Wednesday, July 29th. Citigroup started coverage on shares of Humana in a research report on Friday. They set a "buy" rating for the company. Wells Fargo & Company upgraded shares of Humana from an "equal weight" rating to an "overweight" rating and lifted their price target for the stock from $227.00 to $502.00 in a research note on Monday, July 13th. Finally, Robert W. Baird set a $596.00 price target on shares of Humana and gave the company an "outperform" rating in a research report on Friday. Twenty-one analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $448.35.

Humana Stock Performance

Shares of HUM opened at $430.84 on Monday. The stock has a 50-day simple moving average of $388.59 and a 200-day simple moving average of $334.71. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.74 and a current ratio of 1.74. The stock has a market capitalization of $51.74 billion, a PE ratio of 40.76, a PEG ratio of 2.67 and a beta of 0.74. Humana has a 1 year low of $163.11 and a 1 year high of $456.50.

Humana (NYSE:HUM - Get Free Report) last issued its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share for the quarter, beating the consensus estimate of $7.27 by $0.34. Humana had a net margin of 0.88% and a return on equity of 11.20%. The firm had revenue of $40.89 billion for the quarter, compared to analysts' expectations of $40.58 billion. During the same quarter last year, the company earned $6.27 earnings per share. The firm's revenue was up 26.2% compared to the same quarter last year. On average, analysts predict that Humana will post 9.00 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Humana

Several hedge funds have recently made changes to their positions in HUM. Chapin Davis Inc. acquired a new stake in shares of Humana in the 3rd quarter worth $12,323,000. GAMMA Investing LLC increased its stake in shares of Humana by 27.4% during the third quarter. GAMMA Investing LLC now owns 1,996 shares of the insurance provider's stock worth $762,000 after acquiring an additional 429 shares during the period. Gradient Investments LLC raised its holdings in Humana by 2.5% during the third quarter. Gradient Investments LLC now owns 13,738 shares of the insurance provider's stock worth $5,242,000 after purchasing an additional 330 shares in the last quarter. Valeo Financial Advisors LLC raised its holdings in Humana by 15.3% during the third quarter. Valeo Financial Advisors LLC now owns 814 shares of the insurance provider's stock worth $310,000 after purchasing an additional 108 shares in the last quarter. Finally, Vista Investment Partners LLC acquired a new position in Humana during the 3rd quarter worth approximately $3,254,000. Institutional investors and hedge funds own 92.38% of the company's stock.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Raymond James upgraded Humana to “Outperform” and set a $520 price target, implying approximately 20.7% upside from the referenced price. The upgrade signals increased confidence in Humana’s earnings outlook and Medicare Advantage execution. Humana Raised to Outperform at Raymond James Financial
• Positive Sentiment: Humana lifted the share of bonus-eligible Medicare coverage to 95%. A larger proportion of qualifying plans could support higher Medicare Advantage reimbursement and improve the company’s revenue and margin outlook. Humana Lifts Bonus-Eligible Medicare Coverage to 95%
• Positive Sentiment: Humana’s Medicare Advantage star-rating progress has driven investor optimism, with reports indicating the stock advanced sharply after the 2027 ratings were released. Better ratings can produce quality bonuses and strengthen Humana’s competitive position. Humana advances on Medicare Advantage star ratings
• Positive Sentiment: Robert W. Baird also upgraded Humana, adding to the favorable analyst sentiment surrounding the company. Humana subsequently reached a new 52-week high following analyst upgrades. Humana Upgraded at Robert W. Baird
• Neutral Sentiment: Industry coverage highlights that Medicare Advantage star ratings are creating new bonus opportunities but also introducing uncertainty about plan economics and future reimbursement. Medicare Advantage insurers’ star ratings
• Negative Sentiment: Despite the operational improvement, valuation concerns remain. Humana trades at a relatively elevated forward valuation after its recent rally, leaving the stock vulnerable if bonus benefits or earnings growth disappoint. Humana’s Star Ratings Progress Doesn’t Erase Valuation Concerns

Humana Company Profile

Humana Inc is a health and well-being company headquartered in Louisville, Kentucky. Founded in 1961, the company began as a nursing home operator before expanding into hospitals and health insurance. Today, Humana primarily provides health insurance products and healthcare services for older adults, individuals, military families and other members in the United States.

Humana's insurance business offers Medicare Advantage, Medicare Supplement and prescription drug plans, as well as Medicaid coverage in select markets.