Islay Capital Management LLC Acquires New Shares in Humana Inc. $HUM

Key Points

• Islay Capital Management LLC has acquired 4,701 shares of Humana Inc., valued at approximately $1.24 million, marking the firm's entry into a new investment position during the 1st quarter.
• Major institutional investors have increased their stakes in Humana, with Vanguard Group raising its holdings by 8.9%, owning approximately 14 million shares worth nearly $3.7 billion.
• Humana reported a Q2 earnings miss with $6.27 EPS, falling short of the consensus estimate, though revenue increased 9.6% year-over-year, totaling $32.39 billion.

Islay Capital Management LLC bought a new position in shares of Humana Inc. (NYSE:HUM - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 4,701 shares of the insurance provider's stock, valued at approximately $1,244,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its holdings in Humana by 8.9% in the 1st quarter. Vanguard Group Inc. now owns 13,972,872 shares of the insurance provider's stock valued at $3,697,222,000 after buying an additional 1,143,662 shares during the period. Dodge & Cox increased its position in shares of Humana by 5.5% during the first quarter. Dodge & Cox now owns 10,755,215 shares of the insurance provider's stock valued at $2,845,830,000 after acquiring an additional 557,175 shares during the last quarter. Pzena Investment Management LLC raised its stake in shares of Humana by 6.1% in the 1st 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 during the period. Davis Selected Advisers lifted its holdings in shares of Humana by 3.3% in the 1st quarter. Davis Selected Advisers now owns 2,331,343 shares of the insurance provider's stock worth $616,873,000 after acquiring an additional 74,434 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC raised its position in Humana by 1.6% in 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 purchasing an additional 19,613 shares during the period. Hedge funds and other institutional investors own 92.38% of the company's stock.

Analyst Ratings Changes

Several research firms have recently commented on HUM. Robert W. Baird lowered their price target on Humana from $300.00 to $297.00 and set a "neutral" rating for the company in a research report on Friday, July 25th. Raymond James Financial raised Humana from a "market perform" rating to an "outperform" rating and set a $315.00 target price for the company in a research report on Thursday, May 1st. Oppenheimer increased their price target on shares of Humana from $300.00 to $310.00 and gave the stock an "outperform" rating in a research report on Thursday, May 1st. Bank of America lowered their price objective on shares of Humana from $320.00 to $260.00 and set a "neutral" rating for the company in a research note on Tuesday, June 17th. Finally, Royal Bank Of Canada lifted their price objective on shares of Humana from $283.00 to $322.00 and gave the company an "outperform" rating in a report on Thursday. Seven equities research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Humana currently has a consensus rating of "Hold" and a consensus price target of $283.29.

Humana Trading Up 1.9%

HUM opened at $300.0120 on Monday. 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 Inc. has a one year low of $206.87 and a one year high of $382.72. The company has a market cap of $36.08 billion, a P/E ratio of 23.02, a PEG ratio of 1.76 and a beta of 0.44. The business's 50-day simple moving average is $248.58 and its 200-day simple moving average is $253.29.

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

Humana Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Friday, September 26th will be issued a $0.885 dividend. This represents a $3.54 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, September 26th. Humana's dividend payout ratio is presently 27.17%.

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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