Humana Inc. (NYSE:HUM) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Humana has a consensus analyst rating of “Hold” from 28 covering firms, with an average 1-year price target of about $296.39.
• The company recently beat quarterly expectations, reporting $10.31 EPS versus the $9.97 estimate and revenue of $39.65 billion, up 23.5% year over year.
• Humana also announced a quarterly dividend of $0.885 per share, equal to an annualized yield of about 0.9%, while institutional ownership remains high at 92.38%.

Shares of Humana Inc. (NYSE:HUM - Get Free Report) have received an average rating of "Hold" from the twenty-eight ratings firms that are covering the company, Marketbeat reports. Three investment analysts have rated the stock with a sell rating, sixteen have issued a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $296.3913.

Several brokerages have recently issued reports on HUM. Seaport Research Partners lowered Humana to a "neutral" rating in a research note on Wednesday, May 20th. Barclays upped their target price on shares of Humana from $180.00 to $344.00 and gave the company an "equal weight" rating in a research report on Tuesday, May 26th. Cantor Fitzgerald boosted their price target on shares of Humana from $264.00 to $300.00 and gave the stock a "neutral" rating in a research note on Tuesday. The Goldman Sachs Group lifted their target price on shares of Humana from $158.00 to $195.00 and gave the stock a "sell" rating in a report on Thursday, April 30th. Finally, Piper Sandler reiterated a "neutral" rating and set a $254.00 target price (up from $182.00) on shares of Humana in a research report on Wednesday, May 13th.

Humana Stock Up 0.6%

Shares of NYSE:HUM opened at $396.80 on Thursday. The company has a quick ratio of 1.77, a current ratio of 1.77 and a debt-to-equity ratio of 0.66. The firm has a market cap of $47.64 billion, a P/E ratio of 42.44, a P/E/G ratio of 2.25 and a beta of 0.71. Humana has a 12 month low of $163.11 and a 12 month high of $415.00. The company's 50-day moving average price is $332.48 and its two-hundred day moving average price is $253.25.

Humana (NYSE:HUM - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $10.31 EPS for the quarter, beating the consensus estimate of $9.97 by $0.34. Humana had a net margin of 0.82% and a return on equity of 10.45%. The business had revenue of $39.65 billion for the quarter, compared to analysts' expectations of $39.37 billion. During the same period in the prior year, the firm earned $11.58 earnings per share. Humana's revenue was up 23.5% compared to the same quarter last year. Humana has set its FY 2026 guidance at 9.000- EPS. As a group, research analysts forecast that Humana will post 9.03 EPS for the current fiscal year.

Humana Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, June 26th will be given a dividend of $0.885 per share. This represents a $3.54 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, June 26th. Humana's dividend payout ratio (DPR) is currently 37.86%.

Institutional Investors Weigh In On Humana

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in Humana by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 14,261,860 shares of the insurance provider's stock worth $3,652,890,000 after purchasing an additional 106,030 shares in the last quarter. Capital International Investors increased its holdings in Humana by 113.9% during the 4th quarter. Capital International Investors now owns 5,818,008 shares of the insurance provider's stock worth $1,490,239,000 after purchasing an additional 3,097,571 shares in the last quarter. Pzena Investment Management LLC lifted its stake in Humana by 34.3% in the 1st quarter. Pzena Investment Management LLC now owns 5,470,982 shares of the insurance provider's stock valued at $948,614,000 after acquiring an additional 1,398,774 shares in the last quarter. State Street Corp boosted its position in Humana by 1.8% during the 4th quarter. State Street Corp now owns 5,462,549 shares of the insurance provider's stock worth $1,403,877,000 after acquiring an additional 97,211 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA grew its stake in shares of Humana by 28.9% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 4,496,775 shares of the insurance provider's stock worth $1,151,759,000 after acquiring an additional 1,008,514 shares in the last quarter. 92.38% of the stock is currently owned by institutional investors.

About Humana

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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