Humana (NYSE:HUM) Shares Down 9.2% - What's Next?

Key Points

• Humana's stock price fell by 9.2% on Tuesday, dropping to $281.74, with trading volume increasing 43% compared to the average.
• Investment analysts have varied outlooks on Humana, with Sanford C. Bernstein raising its price target to $341.00, while several others have decreased their targets, reflecting mixed sentiments.
• The company announced a quarterly dividend of $0.885, expected to be paid on October 31st, representing an annualized yield of 1.3%.

Humana Inc. (NYSE:HUM - Get Free Report) shares were down 9.2% on Tuesday . The company traded as low as $282.50 and last traded at $281.74. Approximately 2,438,146 shares traded hands during mid-day trading, an increase of 43% from the average daily volume of 1,704,033 shares. The stock had previously closed at $310.38.

Analyst Ratings Changes

A number of research analysts have weighed in on HUM shares. Robert W. Baird cut their price objective on shares of Humana from $300.00 to $297.00 and set a "neutral" rating for the company in a report on Friday, July 25th. Royal Bank Of Canada boosted their target price on shares of Humana from $283.00 to $322.00 and gave the stock an "outperform" rating in a research note on Thursday, August 21st. Morgan Stanley cut 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. Truist Financial cut their target price on shares of Humana from $280.00 to $260.00 and set a "hold" rating for the company in a research note on Wednesday, July 16th. Finally, Barclays boosted their price target on shares of Humana from $275.00 to $315.00 and gave the stock an "equal weight" rating in a research report on Friday, September 5th. Seven research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. According to MarketBeat.com, Humana has a consensus rating of "Hold" and a consensus target price of $289.24.

Humana Stock Performance

The stock's fifty day simple moving average is $265.34 and its 200-day simple moving average is $257.18. 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 $33.24 billion, a price-to-earnings ratio of 21.21, a price-to-earnings-growth ratio of 1.64 and a beta of 0.44.

Humana (NYSE:HUM - Get Free Report) last announced 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 net margin of 1.28% and a return on equity of 13.67%. The firm had revenue of $32.39 billion during the quarter, compared to analysts' expectations of $31.85 billion. During the same period in the prior year, the company posted $6.96 earnings per share. The company's revenue for the quarter was up 9.6% on a year-over-year basis. Humana has set its FY 2025 guidance at 17.000- EPS. Analysts predict that Humana Inc. will post 16.47 EPS for the current year.

Humana Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Friday, September 26th will be given a dividend of $0.885 per share. This represents a $3.54 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, September 26th. Humana's dividend payout ratio (DPR) is presently 27.17%.

Institutional Investors Weigh In On Humana

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Cary Street Partners Investment Advisory LLC grew its holdings in shares of Humana by 63.9% during the first quarter. Cary Street Partners Investment Advisory LLC now owns 118 shares of the insurance provider's stock worth $31,000 after buying an additional 46 shares in the last quarter. Applied Finance Capital Management LLC grew its holdings in shares of Humana by 1.7% during the first quarter. Applied Finance Capital Management LLC now owns 2,943 shares of the insurance provider's stock worth $779,000 after buying an additional 48 shares in the last quarter. Blue Trust Inc. boosted its position in Humana by 3.6% during the 2nd quarter. Blue Trust Inc. now owns 1,367 shares of the insurance provider's stock worth $334,000 after purchasing an additional 48 shares during the period. Achmea Investment Management B.V. boosted its position in Humana by 0.5% during the 1st quarter. Achmea Investment Management B.V. now owns 10,379 shares of the insurance provider's stock worth $2,746,000 after purchasing an additional 49 shares during the period. Finally, Beech Hill Advisors Inc. boosted its position in Humana by 6.1% during the 1st quarter. Beech Hill Advisors Inc. now owns 865 shares of the insurance provider's stock worth $229,000 after purchasing an additional 50 shares during the period. 92.38% of the stock is currently owned by hedge funds and other institutional investors.

About Humana

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.