Summit Street Capital Management LLC Makes New Investment in Humana Inc. $HUM

Key Points

• Summit Street Capital Management purchased 91,449 Humana shares worth approximately $36.3 million, making HUM its third-largest portfolio holding at about 5.1% and representing roughly 0.08% of the company.
• Several other institutional investors also initiated positions, while institutions collectively own 92.38% of Humana’s stock. Analysts remain mixed, with a consensus “Hold” rating and an average price target of $403.91.
• Humana exceeded quarterly expectations with earnings of $7.61 per share versus $7.27 expected and revenue of $40.89 billion, up 26.2% year over year. Shares opened at $390.06, near the upper end of their 12-month range.

Summit Street Capital Management LLC bought a new stake in shares of Humana Inc. (NYSE:HUM - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 91,449 shares of the insurance provider's stock, valued at approximately $36,325,000. Humana makes up about 5.1% of Summit Street Capital Management LLC's portfolio, making the stock its 3rd biggest position. Summit Street Capital Management LLC owned approximately 0.08% of Humana at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the stock. Freestone Grove Partners LP bought a new stake in Humana during the second quarter valued at about $20,413,000. Caisse de depot et placement du Quebec purchased a new position in Humana in the second quarter valued at about $918,000. Man Group plc bought a new position in Humana in the second quarter worth about $13,294,000. Jupiter Topco LLC purchased a new stake in shares of Humana during the second quarter valued at about $84,347,000. Finally, J. Goldman & Co LP purchased a new stake in shares of Humana during the second quarter valued at about $258,000. 92.38% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on HUM. Lake Street Capital began coverage on shares of Humana in a research report on Thursday, July 30th. They issued a "buy" rating on the stock. Guggenheim increased their target price on shares of Humana from $269.00 to $471.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Sanford C. Bernstein restated an "outperform" rating and issued a $425.00 target price on shares of Humana in a research note on Wednesday, June 3rd. Evercore raised shares of Humana from an "in-line" rating to an "outperform" rating and set a $480.00 price target on the stock in a report on Wednesday, July 29th. Finally, HSBC downgraded Humana to a "hold" rating in a research report on Thursday, July 30th. Fourteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $403.91.

Humana Stock Up 0.1%

Shares of HUM stock opened at $390.06 on Thursday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.62. The stock has a market cap of $46.84 billion, a P/E ratio of 36.90, a P/E/G ratio of 2.22 and a beta of 0.72. The stock has a 50 day moving average of $384.44 and a 200 day moving average of $286.38. Humana Inc. has a twelve month low of $163.11 and a twelve month high of $428.88.

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 (EPS) for the quarter, topping analysts' consensus estimates of $7.27 by $0.34. The firm had revenue of $40.89 billion for the quarter, compared to the consensus estimate of $40.58 billion. Humana had a net margin of 0.88% and a return on equity of 11.20%. The firm's quarterly revenue was up 26.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $6.27 earnings per share. As a group, sell-side analysts expect that Humana Inc. will post 9.12 EPS for the current year.

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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