Zacks Research Issues Negative Outlook for Humana Earnings

Key Points

• Zacks Research lowered Humana’s Q3 2028 EPS estimate to $6.58 from $6.73 and maintained a “Hold” rating. Its full-year consensus EPS estimate stands at $9.01.
• Humana’s latest quarter exceeded expectations, with EPS of $7.61 versus a $7.27 consensus and revenue of $40.89 billion; revenue rose 26.2% year over year.
• Analyst sentiment remains mixed but leans toward “Hold,” with 15 Buy, 14 Hold and one Sell rating and an average price target of $408.61. Humana also declared a quarterly dividend of $0.885 per share, representing a 0.9% yield.

Humana Inc. (NYSE:HUM - Free Report) - Research analysts at Zacks Research lowered their Q3 2028 earnings per share estimates for Humana in a note issued to investors on Tuesday, September 29th. Zacks Research analyst Team now forecasts that the insurance provider will post earnings of $6.58 per share for the quarter, down from their previous estimate of $6.73. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Humana's current full-year earnings is $9.01 per share.

Humana (NYSE:HUM - Get Free Report) last announced its quarterly 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 return on equity of 11.20% and a net margin of 0.88%.The firm had revenue of $40.89 billion for the quarter, compared to analysts' expectations of $40.58 billion. During the same period in the prior year, the business posted $6.27 earnings per share. The company's revenue was up 26.2% on a year-over-year basis.

Other equities analysts have also issued reports about the company. Lake Street Capital assumed coverage on Humana in a research note on Thursday, July 30th. They issued a "buy" rating on the stock. Royal Bank Of Canada increased their price target on shares of Humana from $246.00 to $415.00 and gave the stock a "sector perform" rating in a report on Thursday, July 9th. Truist Financial upped their target price on shares of Humana from $320.00 to $415.00 and gave the stock a "hold" rating in a research report on Tuesday, July 14th. Oppenheimer restated an "outperform" rating and set a $405.00 price target on shares of Humana in a research report on Thursday, July 30th. Finally, Barclays raised Humana from an "equal weight" rating to an "overweight" rating and lifted their price target for the stock from $407.00 to $515.00 in a research note on Friday, September 25th. Fifteen equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $408.61.

Humana Stock Down 0.6%

HUM opened at $379.32 on Friday. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74. Humana has a one year low of $163.11 and a one year high of $428.88. The firm has a market capitalization of $45.55 billion, a P/E ratio of 35.89, a price-to-earnings-growth ratio of 2.35 and a beta of 0.74. The company has a fifty day moving average price of $385.40 and a 200-day moving average price of $324.88.

Institutional Investors Weigh In On Humana

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Versant Capital Management Inc boosted its position in Humana by 16.4% during the 3rd quarter. Versant Capital Management Inc now owns 688 shares of the insurance provider's stock valued at $263,000 after buying an additional 97 shares during the period. QRG Capital Management Inc. increased its holdings in Humana by 31.5% during the 2nd quarter. QRG Capital Management Inc. now owns 3,025 shares of the insurance provider's stock valued at $1,202,000 after purchasing an additional 725 shares during the period. Envestnet Asset Management Inc. raised its position in Humana by 180.2% during the 2nd quarter. Envestnet Asset Management Inc. now owns 38,820 shares of the insurance provider's stock valued at $15,420,000 after purchasing an additional 24,964 shares during the last quarter. The Manufacturers Life Insurance Company raised its position in Humana by 10.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 70,185 shares of the insurance provider's stock valued at $27,879,000 after purchasing an additional 6,690 shares during the last quarter. Finally, Sequoia Financial Advisors LLC lifted its stake in Humana by 55.6% in the second quarter. Sequoia Financial Advisors LLC now owns 5,753 shares of the insurance provider's stock worth $2,285,000 after acquiring an additional 2,055 shares during the period. 92.38% of the stock is currently owned by institutional investors.

Humana Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, October 30th will be paid a dividend of $0.8850 per share. This represents a $3.54 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, October 30th. Humana's dividend payout ratio is 33.49%.

Humana News Summary

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Humana said it will maintain affordable Medicare Advantage plans for 2027 while expanding specialized-care options. The offerings could support member retention and strengthen Humana’s competitive position during the annual enrollment period. Humana Maintains Affordable Medicare Advantage Plans and Expands Specialized Care Options for 2027
• Neutral Sentiment: Humana scheduled its third-quarter earnings release for November 6, placing the report during Medicare Advantage open enrollment. Investors will likely focus on membership changes, plan pricing and medical-cost trends. Humana Reports Third-Quarter Earnings Nov. 6
• Neutral Sentiment: Humana’s 2027 Medicare Advantage plan expansion provides additional coverage choices, but the announcement offers limited information on expected enrollment growth, margins or medical costs. Humana Expands Medicare Advantage Options for 2027
• Negative Sentiment: Zacks Research made several modest estimate changes. It raised 2026 EPS to $9.05 from $9.00 and 2027 EPS to $11.23 from $10.98, but lowered Q3 2028 EPS to $6.58 from $6.73 and full-year 2028 EPS to $29.45 from $30.30. It also slightly reduced its Q4 2026 estimate to a $7.75 loss per share. The firm retained a “Hold” rating, and the longer-term downgrades may weigh on sentiment. What is Zacks Research's Estimate for Humana Q3 Earnings?

About Humana

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.