Humana (NYSE:HUM) Stock Price Down 5.7% - What's Next?

Key Points

• Humana's stock price fell 5.7% during trading, closing at $245.36, significantly down from its previous close of $260.17.
• The company reported $6.27 EPS for the recent quarter, missing analysts' expectations, but had a revenue increase of 9.6% year-over-year.
• Humana's dividend has been set at $0.885 per share, with a 1.4% dividend yield and a payout ratio of 27.17%.

Humana Inc. (NYSE:HUM - Get Free Report) shares fell 5.7% during trading on Wednesday . The company traded as low as $244.46 and last traded at $245.36. 1,364,762 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 1,742,224 shares. The stock had previously closed at $260.17.

Analyst Upgrades and Downgrades

HUM has been the subject of a number of research analyst reports. Evercore ISI initiated coverage on shares of Humana in a research note on Monday, September 22nd. They issued an "in-line" rating and a $295.00 target price for the company. Robert W. Baird reduced their target price on shares of Humana from $300.00 to $297.00 and set a "neutral" rating for the company in a research note on Friday, July 25th. Piper Sandler reduced their target price on shares of Humana from $288.00 to $272.00 and set a "neutral" rating for the company in a research note on Thursday, July 31st. Wells Fargo & Company reduced their target price on shares of Humana from $348.00 to $344.00 and set an "overweight" rating for the company in a research note on Thursday, August 14th. Finally, Morgan Stanley reduced their target price on shares of Humana from $290.00 to $277.00 and set an "equal weight" rating for the company in a research note on Thursday, July 31st. Seven analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company. Based on data from MarketBeat, Humana has a consensus rating of "Hold" and an average price target of $289.50.

Humana Stock Performance

The stock's 50 day moving average price is $273.10 and its 200 day moving average price is $257.44. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 0.69. The company has a market capitalization of $29.69 billion, a price-to-earnings ratio of 18.95, a P/E/G ratio of 1.50 and a beta of 0.44.

Humana (NYSE:HUM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $6.27 EPS for the quarter, missing analysts' consensus estimates 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 analyst estimates of $31.85 billion. During the same quarter in the prior year, the company earned $6.96 earnings per share. The company's quarterly revenue was up 9.6% on a year-over-year basis. Humana has set its FY 2025 guidance at 17.000- EPS. Analysts expect that Humana Inc. will post 16.47 earnings per share for the current year.

Humana Announces Dividend

The company also recently announced 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 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, September 26th. Humana's dividend payout ratio is presently 27.17%.

Institutional Investors Weigh In On Humana

Institutional investors and hedge funds have recently modified their holdings of the company. Cary Street Partners Investment Advisory LLC raised its holdings in shares of Humana by 63.9% in the 1st quarter. Cary Street Partners Investment Advisory LLC now owns 118 shares of the insurance provider's stock valued at $31,000 after purchasing an additional 46 shares during the period. Riverview Trust Co bought a new stake in shares of Humana in the 1st quarter valued at about $34,000. Elevation Point Wealth Partners LLC bought a new position in Humana in the 2nd quarter valued at about $32,000. Garde Capital Inc. bought a new position in Humana in the 1st quarter valued at about $36,000. Finally, Zions Bancorporation National Association UT bought a new position in Humana in the 1st quarter valued at about $37,000. 92.38% of the stock is owned by institutional investors.

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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