Chapin Davis Inc. Buys 32,296 Shares of Humana Inc. $HUM

Key Points

• Chapin Davis Inc. purchased 32,296 Humana shares worth approximately $12.3 million, making HUM about 2.5% of its portfolio. Institutional investors and hedge funds collectively own 92.38% of the company.
• Humana’s latest quarterly results exceeded expectations, with EPS of $7.61 versus the $7.27 consensus and revenue of $40.89 billion. The company also declared a quarterly dividend of $0.885 per share, representing a 0.9% annualized yield.
• Improved Medicare Advantage Star Ratings and a Cantor Fitzgerald upgrade to “Overweight” support the bullish outlook, though elevated expectations and volatility remain risks ahead of upcoming earnings.

Chapin Davis Inc. purchased a new position in Humana Inc. (NYSE:HUM - Free Report) during the 3rd quarter, according to its most recent 13F filing with the SEC. The firm purchased 32,296 shares of the insurance provider's stock, valued at approximately $12,323,000. Humana comprises approximately 2.5% of Chapin Davis Inc.'s investment portfolio, making the stock its 12th largest position.

Other hedge funds have also recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its position 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 purchasing an additional 429 shares in the last quarter. Gradient Investments LLC lifted 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 acquiring an additional 330 shares in the last quarter. Valeo Financial Advisors LLC lifted 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 acquiring an additional 108 shares in the last quarter. Vista Investment Partners LLC acquired a new position in Humana in the third quarter valued at about $3,254,000. Finally, Lake Hills Wealth Management LLC grew its stake in Humana by 6.3% in the third quarter. Lake Hills Wealth Management LLC now owns 2,312 shares of the insurance provider's stock valued at $882,000 after acquiring an additional 138 shares during the period. Institutional investors and hedge funds own 92.38% of the company's stock.

Humana Trading Down 2.2%

Shares of NYSE:HUM opened at $387.68 on Friday. The company's 50-day moving average price is $387.26 and its two-hundred day moving average price is $332.87. Humana Inc. has a one year low of $163.11 and a one year high of $428.88. 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 market capitalization of $46.55 billion, a PE ratio of 36.68, a price-to-earnings-growth ratio of 2.45 and a beta of 0.74.

Humana (NYSE:HUM - Get Free Report) last released its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share (EPS) for the quarter, beating 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 the consensus estimate of $40.58 billion. During the same quarter in the previous year, the business earned $6.27 earnings per share. Humana's quarterly revenue was up 26.2% on a year-over-year basis. On average, equities analysts forecast that Humana Inc. will post 9.01 EPS for the current fiscal year.

Humana Announces Dividend

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. The ex-dividend date is Friday, October 30th. This represents a $3.54 dividend on an annualized basis and a dividend yield of 0.9%. Humana's dividend payout ratio is currently 33.49%.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Improved 2027 Medicare Advantage Star Ratings support the bullish case. Humana reportedly received a boost in its 2027 ratings, potentially improving bonus economics and Medicare Advantage margins. The news prompted a sharp post-market reaction as investors reassessed the company’s earnings outlook. Humana surges post-market on boost in 2027 Medicare Advantage star ratings
• Positive Sentiment: Analyst upgrade adds support. Cantor Fitzgerald raised Humana to “Overweight” from “Neutral” and lifted its price target to $460 from $300, citing improving prospects for the insurer. Humana stock rating raised to Overweight at Cantor Fitzgerald
• Neutral Sentiment: Upcoming earnings remain a major catalyst. Humana is scheduled to report its third-quarter 2026 results, giving investors an opportunity to assess medical-cost trends and whether improved Star Ratings are translating into stronger financial performance. Humana sets date for third-quarter 2026 interim report
• Neutral Sentiment: A report highlighting Humana’s roughly $13 billion economic impact in Louisville reinforces the company’s local significance but is unlikely to materially affect near-term valuation. Report highlights Humana’s $13B impact in Louisville
• Negative Sentiment: Volatility and elevated expectations remain risks. HUM had recently rallied on expectations for better Medicare margins and ratings, so the earlier decline likely reflected profit-taking and uncertainty ahead of CMS’s announcement. The stock also trades above several published analyst targets, increasing sensitivity to any disappointment in the ratings or upcoming earnings.

Wall Street Analyst Weigh In

HUM has been the topic of a number of research analyst reports. HSBC lowered Humana to a "hold" rating in a research report on Thursday, July 30th. TD Cowen lifted their price target on shares of Humana from $350.00 to $370.00 and gave the company a "hold" rating in a research note on Friday, July 31st. Wall Street Zen downgraded shares of Humana from a "buy" rating to a "hold" rating in a research report on Sunday, September 27th. UBS Group began coverage on shares of Humana in a report on Thursday, July 30th. They set a "buy" rating on the stock. Finally, Morgan Stanley upgraded Humana from an "underweight" rating to an "equal weight" rating and increased their target price for the stock from $249.00 to $370.00 in a report on Tuesday, August 4th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $431.48.

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.

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