Humana (NYSE:HUM) Shares Gap Up After Earnings Beat

Humana Inc. (NYSE:HUM - Get Free Report) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $259.36, but opened at $273.45. Humana shares last traded at $262.49, with a volume of 474,261 shares trading hands.

The insurance provider reported $11.58 EPS for the quarter, beating analysts' consensus estimates of $10.07 by $1.51. The business had revenue of $32.11 billion during the quarter, compared to analyst estimates of $32 billion. Humana had a return on equity of 11.70% and a net margin of 1.02%. The firm's revenue was up 8.4% compared to the same quarter last year. During the same period in the previous year, the company posted $7.23 EPS.

Humana Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 25th. Shareholders of record on Friday, June 27th will be paid a dividend of $0.885 per share. The ex-dividend date of this dividend is Friday, June 27th. This represents a $3.54 dividend on an annualized basis and a yield of 1.37%. Humana's dividend payout ratio (DPR) is presently 35.58%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on HUM. Guggenheim initiated coverage on shares of Humana in a report on Wednesday, April 9th. They set a "buy" rating and a $326.00 price objective for the company. JPMorgan Chase & Co. cut their price target on Humana from $257.00 to $256.00 and set a "neutral" rating for the company in a research note on Tuesday, February 18th. Piper Sandler increased their price objective on Humana from $270.00 to $288.00 and gave the stock a "neutral" rating in a research note on Wednesday, January 15th. Oppenheimer lifted their target price on Humana from $300.00 to $310.00 and gave the company an "outperform" rating in a research report on Thursday. Finally, Raymond James raised Humana from a "market perform" rating to an "outperform" rating and set a $315.00 price target for the company in a research report on Thursday. Eighteen research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $287.76.

Hedge Funds Weigh In On Humana

Several large investors have recently modified their holdings of the business. Pinnacle Wealth Management Advisory Group LLC grew its stake in Humana by 3.6% in the 4th quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,070 shares of the insurance provider's stock valued at $272,000 after buying an additional 37 shares in the last quarter. Atlas Brown Inc. grew its position in shares of Humana by 0.6% in the fourth quarter. Atlas Brown Inc. now owns 6,352 shares of the insurance provider's stock valued at $1,611,000 after purchasing an additional 38 shares in the last quarter. Mather Group LLC. raised its stake in shares of Humana by 21.0% during the 4th quarter. Mather Group LLC. now owns 236 shares of the insurance provider's stock valued at $60,000 after purchasing an additional 41 shares during the period. Capital Advisors Ltd. LLC lifted its holdings in Humana by 26.1% during the 4th quarter. Capital Advisors Ltd. LLC now owns 208 shares of the insurance provider's stock worth $53,000 after purchasing an additional 43 shares in the last quarter. Finally, Retirement Planning Co of New England Inc. boosted its stake in Humana by 4.7% in the 4th quarter. Retirement Planning Co of New England Inc. now owns 966 shares of the insurance provider's stock worth $245,000 after purchasing an additional 43 shares during the period. Hedge funds and other institutional investors own 92.38% of the company's stock.

Humana Stock Up 0.8 %

The stock has a fifty day simple moving average of $266.17 and a two-hundred day simple moving average of $270.63. The firm has a market cap of $31.16 billion, a PE ratio of 25.95, a price-to-earnings-growth ratio of 2.05 and a beta of 0.62. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.68.

Humana Company 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.