Humana (NYSE:HUM) Shares Up 9.1% - Here's What Happened

Key Points

• Shares of Humana Inc. rose 9.1% on Friday, reaching a last traded price of $279.99, with trading volume increasing by 20% from the average daily volume.
• Several analysts have recently adjusted their ratings and price targets for Humana, with a consensus rating of "Hold" and a price target of $289.15.
• Humana declared a quarterly dividend of $0.885 per share, with the payment date set for October 31st, 2023.

Shares of Humana Inc. (NYSE:HUM - Get Free Report) were up 9.1% on Friday . The stock traded as high as $280.03 and last traded at $279.99. Approximately 2,122,331 shares were traded during mid-day trading, an increase of 20% from the average daily volume of 1,771,086 shares. The stock had previously closed at $256.62.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Guggenheim reiterated a "buy" rating on shares of Humana in a research note on Friday. Morgan Stanley decreased their price target on shares of Humana from $290.00 to $277.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 31st. Wells Fargo & Company reduced their price target on Humana from $348.00 to $344.00 and set an "overweight" rating on the stock in a report on Thursday, August 14th. Robert W. Baird reduced their target price on shares of Humana from $300.00 to $297.00 and set a "neutral" rating on the stock in a report on Friday, July 25th. Finally, Wall Street Zen cut Humana from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Seven analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Humana has an average rating of "Hold" and a consensus price target of $289.15.

Humana Trading Up 10.7%

The firm has a market capitalization of $34.16 billion, a P/E ratio of 21.80, a PEG ratio of 1.51 and a beta of 0.42. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 0.69. The business's 50 day moving average is $273.85 and its two-hundred day moving average is $257.32.

Humana (NYSE:HUM - Get Free Report) last announced its earnings results on Wednesday, July 30th. The insurance provider reported $6.27 EPS for the quarter, missing the consensus estimate 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 business's quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $6.96 earnings per share. Humana has set its FY 2025 guidance at 17.000- EPS. Analysts expect that Humana Inc. will post 16.47 EPS for the current year.

Humana Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Friday, September 26th will be given a dividend of $0.885 per share. The ex-dividend date of this dividend is Friday, September 26th. This represents a $3.54 annualized dividend and a yield of 1.2%. Humana's dividend payout ratio is 27.17%.

Institutional Investors Weigh In On Humana

A number of institutional investors have recently made changes to their positions in HUM. Vanguard Group Inc. boosted its position in Humana by 1.6% in the second quarter. Vanguard Group Inc. now owns 14,199,096 shares of the insurance provider's stock valued at $3,471,395,000 after buying an additional 226,224 shares in the last quarter. Dodge & Cox grew its holdings in Humana by 5.6% during the 2nd quarter. Dodge & Cox now owns 11,352,920 shares of the insurance provider's stock worth $2,775,562,000 after acquiring an additional 597,705 shares during the period. State Street Corp raised its position in shares of Humana by 1.1% in the 2nd quarter. State Street Corp now owns 5,377,390 shares of the insurance provider's stock worth $1,319,334,000 after acquiring an additional 58,094 shares in the last quarter. Pzena Investment Management LLC lifted its stake in Humana by 6.5% in the second quarter. Pzena Investment Management LLC now owns 4,076,667 shares of the insurance provider's stock valued at $996,664,000 after buying an additional 247,744 shares during the period. Finally, Geode Capital Management LLC boosted its holdings in shares of Humana by 1.9% during the 2nd quarter. Geode Capital Management LLC now owns 3,130,829 shares of the insurance provider's stock worth $762,233,000 after buying an additional 57,267 shares in the last quarter. Institutional investors own 92.38% of the company's stock.

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.

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