Avidity Partners Management LP Buys Shares of 25,000 Humana Inc. $HUM

Key Points

• Avidity Partners Management LP initiated a Humana position by purchasing 25,000 shares valued at approximately $4.34 million, making HUM its 16th-largest holding. Institutional investors and hedge funds collectively own 92.38% of the stock.
• Humana reported a quarterly earnings beat, with EPS of $7.61 versus the $7.27 consensus and revenue of $40.89 billion, up 26.2% year over year. However, the company maintained its full-year 2026 earnings guidance, while Medicare Advantage market exits and lower quality ratings remain concerns.
• Analyst sentiment has improved, including upgrades from Leerink Partners and Bank of America, but the overall consensus remains “Hold” with a $386.61 price target, compared with the stock’s reported $364.54 opening price.

Avidity Partners Management LP purchased a new position in shares of Humana Inc. (NYSE:HUM - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 25,000 shares of the insurance provider's stock, valued at approximately $4,335,000. Humana accounts for 0.9% of Avidity Partners Management LP's holdings, making the stock its 16th largest position.

Other institutional investors have also modified their holdings of the company. Montag A & Associates Inc. lifted its holdings in Humana by 1,880.0% during the 4th quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider's stock worth $25,000 after buying an additional 94 shares in the last quarter. CoreCap Advisors LLC grew its stake in shares of Humana by 54.4% in the fourth quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider's stock worth $27,000 after acquiring an additional 37 shares in the last quarter. Fideuram Asset Management Ireland dac acquired a new position in shares of Humana in the fourth quarter worth $27,000. Reflection Asset Management purchased a new stake in shares of Humana during the fourth quarter worth $29,000. Finally, Global Assets Advisory LLC acquired a new stake in shares of Humana in the first quarter valued at $38,000. 92.38% of the stock is owned by institutional investors and hedge funds.

Humana Stock Performance

NYSE HUM opened at $364.54 on Friday. The company has a quick ratio of 1.77, a current ratio of 1.74 and a debt-to-equity ratio of 0.62. Humana Inc. has a 52-week low of $163.11 and a 52-week high of $428.88. The business's 50-day moving average price is $370.79 and its 200 day moving average price is $268.37. The firm has a market cap of $43.77 billion, a P/E ratio of 34.49, a P/E/G ratio of 2.07 and a beta of 0.71.

Humana (NYSE:HUM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $7.61 EPS 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 during the quarter, compared to the consensus estimate of $40.58 billion. During the same period in the prior year, the business earned $6.27 EPS. The firm's revenue was up 26.2% compared to the same quarter last year. On average, equities research analysts expect that Humana Inc. will post 9.1 earnings per share for the current year.

Key Headlines Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Analyst upgrades: Leerink Partners raised Humana from “market perform” to “outperform” and set a $513 price target, implying substantial upside. Bank of America also upgraded the stock to “Buy.” Leerink Partners upgrade Bank of America upgrade
• Positive Sentiment: Second-quarter beat: Humana reported adjusted EPS of $7.61, above the $7.27 consensus estimate, while revenue reached $40.89 billion versus expectations of $40.58 billion. Revenue increased 26.2% year over year, and reported profit was approximately $694 million. Humana second-quarter profit report
• Neutral Sentiment: TD Cowen raised its target from $350 to $370 but maintained a “Hold” rating, indicating only modest expected upside and signaling limited conviction despite the higher valuation estimate. TD Cowen price target update
• Negative Sentiment: Unchanged guidance disappointed investors: Humana affirmed its full-year 2026 adjusted earnings outlook rather than raising it after the quarterly beat. Reports also cited pressure from lower Medicare Advantage quality ratings, tempering optimism about near-term earnings growth. Humana stock and second-quarter outlook
• Negative Sentiment: Medicare Advantage exits: Humana plans to withdraw from additional Medicare Advantage markets and plans in 2027 as it targets a 3% margin. The portfolio reshaping may improve profitability over time, but it could reduce membership and revenue growth in the near term. Humana Medicare Advantage plan exits

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on HUM shares. Sanford C. Bernstein reiterated an "outperform" rating and issued a $425.00 target price on shares of Humana in a report on Wednesday, June 3rd. Guggenheim increased their price target on Humana from $269.00 to $471.00 and gave the company a "buy" rating in a research report on Thursday. Wolfe Research upgraded Humana from a "peer perform" rating to an "outperform" rating in a research note on Thursday. Barclays boosted their price objective on Humana from $344.00 to $407.00 and gave the stock an "equal weight" rating in a research report on Friday. Finally, Jefferies Financial Group raised shares of Humana from a "buy" rating to a "buy" rating in a report on Wednesday, May 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $386.61.

Humana Company Profile

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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