Humana Inc. (NYSE:HUM) Announces $0.89 Quarterly Dividend

Key Points

• Humana declared a quarterly dividend of $0.885 per share, payable November 27 to shareholders of record October 30. The dividend implies an annualized yield of approximately 0.9% and is supported by a 24.1% payout ratio.
• Humana’s latest quarterly results exceeded expectations, with earnings of $7.61 per share and revenue of $40.89 billion, up 26.2% year over year.
• Analyst sentiment is mixed: 14 analysts rate the stock a Buy, 15 a Hold and one a Sell, producing an overall “Hold” rating and an average price target of $403.91.

Humana Inc. (NYSE:HUM - Get Free Report) announced a quarterly dividend on Wednesday, September 2nd. Investors of record on Friday, October 30th will be given a dividend of 0.885 per share by the insurance provider on Friday, November 27th. This represents a c) annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, October 30th.

Humana has raised its dividend by an average of 0.1%annually over the last three years. Humana has a dividend payout ratio of 24.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Humana to earn $15.26 per share next year, which means the company should continue to be able to cover its $3.54 annual dividend with an expected future payout ratio of 23.2%.

Humana Price Performance

NYSE:HUM traded up $5.25 during mid-day trading on Wednesday, reaching $400.12. The stock had a trading volume of 1,138,234 shares, compared to its average volume of 1,718,160. Humana has a 12 month low of $163.11 and a 12 month high of $428.88. The stock has a market capitalization of $48.05 billion, a PE ratio of 37.85, a P/E/G ratio of 2.18 and a beta of 0.72. 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 stock has a 50-day simple moving average of $386.76 and a two-hundred day simple moving average of $292.15.

Humana (NYSE:HUM - Get Free Report) last released its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share for the quarter, topping the consensus estimate of $7.27 by $0.34. The firm had revenue of $40.89 billion during the quarter, compared to analysts' expectations of $40.58 billion. Humana had a return on equity of 11.20% and a net margin of 0.88%.The company's quarterly revenue was up 26.2% on a year-over-year basis. During the same period in the prior year, the company earned $6.27 earnings per share. On average, equities analysts anticipate that Humana will post 9.12 earnings per share for the current year.

Analysts Set New Price Targets

HUM has been the subject of several recent analyst reports. Leerink Partners upgraded Humana from a "market perform" rating to an "outperform" rating and set a $513.00 price objective for the company in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft assumed coverage on Humana in a research note on Thursday, July 30th. They set a "hold" rating for the company. Truist Financial increased their target price on shares of Humana from $320.00 to $415.00 and gave the stock a "hold" rating in a report on Tuesday, July 14th. Needham & Company LLC began coverage on shares of Humana in a research note on Wednesday, May 20th. They issued a "buy" rating on the stock. Finally, Royal Bank Of Canada lifted their price target on shares of Humana from $246.00 to $415.00 and gave the company a "sector perform" rating in a report on Thursday, July 9th. Fourteen equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $403.91.

About Humana

Humana Inc NYSE: HUM is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana's products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.

In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.

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