Diamond Hill Capital Management LLC Investment Advisor Makes New Investment in Humana Inc. $HUM

Key Points

• Diamond Hill Capital Management initiated a 618,185-share Humana position worth approximately $245.6 million, making HUM about 2% of its portfolio and its 11th-largest holding.
• Analyst sentiment is mixed: Humana has a consensus “Hold” rating with an average price target of $395.22, although several firms recently raised targets and Piper Sandler upgraded the stock to “Overweight.”
• Humana exceeded quarterly expectations with $7.61 in EPS and $40.89 billion in revenue, but faces near-term uncertainty from projected earnings volatility and plans affecting roughly 600,000 Medicare Advantage members in 2027.

Diamond Hill Capital Management LLC Investment Advisor bought a new stake in Humana Inc. (NYSE:HUM - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 618,185 shares of the insurance provider's stock, valued at approximately $245,555,000. Humana comprises approximately 2.0% of Diamond Hill Capital Management LLC Investment Advisor's investment portfolio, making the stock its 11th largest holding. Diamond Hill Capital Management LLC Investment Advisor owned about 0.51% of Humana at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the company. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Humana by 4.1% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 250,330 shares of the insurance provider's stock worth $66,207,000 after acquiring an additional 9,960 shares during the last quarter. Sustainable Insight Capital Management LLC grew its position in shares of Humana by 23.7% in the fourth quarter. Sustainable Insight Capital Management LLC now owns 24,757 shares of the insurance provider's stock valued at $6,341,000 after purchasing an additional 4,740 shares during the last quarter. Ninety One UK Ltd grew its position in shares of Humana by 57.2% in the fourth quarter. Ninety One UK Ltd now owns 112,501 shares of the insurance provider's stock valued at $28,815,000 after purchasing an additional 40,958 shares during the last quarter. Swedbank AB increased its stake in shares of Humana by 6.2% during the 4th quarter. Swedbank AB now owns 111,803 shares of the insurance provider's stock worth $28,636,000 after purchasing an additional 6,534 shares in the last quarter. Finally, North Dakota State Investment Board purchased a new position in shares of Humana during the 4th quarter worth approximately $1,517,000. Hedge funds and other institutional investors own 92.38% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on HUM shares. Morgan Stanley raised Humana from an "underweight" rating to an "equal weight" rating and upped their target price for the company from $249.00 to $370.00 in a research note on Tuesday, August 4th. Oppenheimer reissued an "outperform" rating and set a $405.00 price target on shares of Humana in a research report on Thursday, July 30th. TD Cowen boosted their price target on Humana from $350.00 to $370.00 and gave the stock a "hold" rating in a report on Friday, July 31st. Royal Bank Of Canada upped their price objective on Humana from $246.00 to $415.00 and gave the company a "sector perform" rating in a research report on Thursday, July 9th. Finally, Piper Sandler raised Humana from a "hold" rating to an "overweight" rating and set a $463.00 price objective on the stock in a research note on Thursday, July 30th. Fourteen research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $395.22.

Humana Stock Performance

Shares of HUM stock opened at $388.16 on Monday. 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 firm has a market capitalization of $46.61 billion, a price-to-earnings ratio of 36.72, a price-to-earnings-growth ratio of 2.23 and a beta of 0.72. Humana Inc. has a one year low of $163.11 and a one year high of $428.88. The company has a 50 day moving average price of $382.02 and a 200 day moving average price of $275.76.

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 analysts' consensus estimates of $7.27 by $0.34. Humana had a net margin of 0.88% and a return on equity of 11.20%. The company had revenue of $40.89 billion for the quarter, compared to analyst estimates of $40.58 billion. During the same quarter last year, the business earned $6.27 EPS. Humana's revenue for the quarter was up 26.2% on a year-over-year basis. Sell-side analysts anticipate that Humana Inc. will post 9.08 EPS for the current year.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Zacks Research raised its Humana Q1 2028 EPS forecast to $11.53 from $8.58, Q2 2027 EPS to $5.27 from $4.20, and FY2028 EPS to $30.30 from $22.28. These revisions point to stronger anticipated profitability beyond the company’s near-term earnings pressures, although Zacks still rates the shares “Hold.”
• Positive Sentiment: Humana’s partnership with Cityblock Health will support low-income, dual-eligible Medicare Advantage members. The initiative could improve care coordination and outcomes while strengthening Humana’s position in Medicaid and Medicare-related markets. Humana teams with Cityblock to support dual eligible, MA low income members
• Positive Sentiment: A HealthStream agreement will fund 1,000 caregiver scholarships and provide recruiting and retention tools in Indiana. Better staffing could support Humana’s CenterWell and care-delivery operations over time. Can Humana Improve Caregiver Retention With HealthStream Deal?
• Neutral Sentiment: Humana agreed not to reference Teva’s Israeli ties during an upcoming drug price-fixing trial. The agreement avoids a potential courtroom distraction, but it does not materially change Humana’s operating outlook. Humana agrees not to reference Teva's Israel ties at US drug trial
• Negative Sentiment: Zacks downgraded Humana from “Strong Buy” to “Hold” and reduced several forecasts, including Q3 2026 EPS from $0.08 to a loss of $1.18, Q4 2026 EPS to a loss of $7.74, and FY2027 EPS to $10.98 from $13.30. The revisions signal meaningful near-term earnings volatility.
• Negative Sentiment: Reports that Humana will exit markets affecting roughly 600,000 Medicare Advantage members in 2027 raise concerns about membership growth and future revenue, even if the moves are intended to improve plan profitability. Humana Medicare Advantage membership changes

Humana 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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