GAMMA Investing LLC Cuts Stake in Humana Inc. $HUM

Key Points

• GAMMA Investing LLC reduced its stake in Humana Inc. by 37.4% during the second quarter, owning 1,849 shares valued at $452,000 after selling 1,103 shares.
• Humana reported a missed earnings estimate for the quarter with an EPS of $6.27, below the expected $6.32, but its revenue of $32.39 billion exceeded analysts' projections.
• The company announced a quarterly dividend of $0.885, with an annualized yield of 1.4%, scheduled for payment on October 31st.

GAMMA Investing LLC cut its stake in Humana Inc. (NYSE:HUM - Free Report) by 37.4% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,849 shares of the insurance provider's stock after selling 1,103 shares during the quarter. GAMMA Investing LLC's holdings in Humana were worth $452,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in Humana by 8.9% in the first quarter. Vanguard Group Inc. now owns 13,972,872 shares of the insurance provider's stock valued at $3,697,222,000 after purchasing an additional 1,143,662 shares during the period. Dodge & Cox raised its position in Humana by 5.5% in the first quarter. Dodge & Cox now owns 10,755,215 shares of the insurance provider's stock valued at $2,845,830,000 after purchasing an additional 557,175 shares during the period. Pzena Investment Management LLC grew its stake in shares of Humana by 6.1% during the first quarter. Pzena Investment Management LLC now owns 3,828,923 shares of the insurance provider's stock valued at $1,013,133,000 after acquiring an additional 219,541 shares in the last quarter. Davis Selected Advisers grew its stake in shares of Humana by 3.3% during the first quarter. Davis Selected Advisers now owns 2,331,343 shares of the insurance provider's stock valued at $616,873,000 after acquiring an additional 74,434 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC grew its stake in shares of Humana by 1.6% during the first quarter. Hotchkis & Wiley Capital Management LLC now owns 1,236,936 shares of the insurance provider's stock valued at $327,293,000 after acquiring an additional 19,613 shares in the last quarter. 92.38% of the stock is owned by hedge funds and other institutional investors.

Humana Stock Down 2.9%

NYSE:HUM opened at $254.35 on Friday. The company has a market capitalization of $30.59 billion, a price-to-earnings ratio of 19.52, a price-to-earnings-growth ratio of 1.54 and a beta of 0.44. Humana Inc. has a one year low of $206.87 and a one year high of $324.38. The stock has a 50-day simple moving average of $271.22 and a 200 day simple moving average of $257.28. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.95 and a current ratio of 1.95.

Humana (NYSE:HUM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $6.27 EPS for the quarter, missing analysts' consensus estimates of $6.32 by ($0.05). The firm had revenue of $32.39 billion during the quarter, compared to analyst estimates of $31.85 billion. Humana had a return on equity of 13.67% and a net margin of 1.28%.The firm's revenue for the quarter was up 9.6% on a year-over-year basis. During the same quarter last year, the business posted $6.96 earnings per share. Humana has set its FY 2025 guidance at 17.000- EPS. Sell-side analysts predict that Humana Inc. will post 16.47 EPS for the current fiscal year.

Humana Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Friday, September 26th will be paid a $0.885 dividend. This represents a $3.54 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, September 26th. Humana's payout ratio is presently 27.17%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on HUM shares. Morgan Stanley lowered their target price on Humana from $290.00 to $277.00 and set an "equal weight" rating for the company in a research note on Thursday, July 31st. Wall Street Zen downgraded Humana from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Barclays raised their target price on Humana from $275.00 to $315.00 and gave the company an "equal weight" rating in a research note on Friday, September 5th. Truist Financial lowered their target price on Humana from $280.00 to $260.00 and set a "hold" rating for the company in a research note on Wednesday, July 16th. Finally, Evercore ISI started coverage on Humana in a research note on Monday. They set an "in-line" rating and a $295.00 target price for the company. Seven research analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $289.50.

Humana Profile

Humana Inc, together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits.

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