Humana (NYSE:HUM) Stock Price Down 5.3% - Here's Why

Key Points

• Humana's stock price fell by 5.3% to $250.83 as of Friday, trading at a volume that was 8% higher than the average.
• Wall Street analysts generally hold a consensus rating of "Hold" for Humana, with an average price target of $289.24, while seven analysts rate it as a Buy.
• Humana announced a quarterly dividend of $0.885 per share, resulting in an annualized yield of 1.4%, with a payout ratio of 27.17%.

Humana Inc. (NYSE:HUM - Get Free Report) shares traded down 5.3% on Friday . The company traded as low as $251.08 and last traded at $250.83. 1,863,938 shares traded hands during trading, an increase of 8% from the average session volume of 1,732,478 shares. The stock had previously closed at $264.86.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Royal Bank Of Canada boosted their price target on shares of Humana from $283.00 to $322.00 and gave the stock an "outperform" rating in a research report on Thursday, August 21st. Truist Financial reduced their target price on shares of Humana from $280.00 to $260.00 and set a "hold" rating on the stock in a research note on Wednesday, July 16th. Sanford C. Bernstein lifted their target price on shares of Humana from $269.00 to $341.00 and gave the stock an "outperform" rating in a research note on Friday, September 5th. Wall Street Zen downgraded shares of Humana from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Finally, Morgan Stanley reduced 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. 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, the company currently has a consensus rating of "Hold" and a consensus target price of $289.50.

Humana Stock Performance

The firm's fifty day moving average price is $269.18 and its 200-day moving average price is $257.22. 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 firm has a market cap of $31.04 billion, a price-to-earnings ratio of 19.81, a PEG ratio of 1.48 and a beta of 0.44.

Humana (NYSE:HUM - Get Free Report) last issued its earnings results on Wednesday, July 30th. The insurance provider reported $6.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.32 by ($0.05). The company had revenue of $32.39 billion during the quarter, compared to analyst estimates of $31.85 billion. Humana had a net margin of 1.28% and a return on equity of 13.67%. The company's quarterly revenue was up 9.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $6.96 EPS. 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 Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Friday, September 26th will be issued a dividend of $0.885 per share. This represents a $3.54 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, September 26th. Humana's dividend payout ratio is currently 27.17%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in HUM. Vanguard Group Inc. increased its holdings 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 boosted its position in Humana by 5.6% during the second 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 last quarter. State Street Corp boosted its position in Humana by 1.1% during the second 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 during the last quarter. Pzena Investment Management LLC boosted its position in Humana by 6.5% during the second quarter. Pzena Investment Management LLC now owns 4,076,667 shares of the insurance provider's stock worth $996,664,000 after acquiring an additional 247,744 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in Humana by 1.9% during the second quarter. Geode Capital Management LLC now owns 3,130,829 shares of the insurance provider's stock worth $762,233,000 after acquiring an additional 57,267 shares during the last quarter. 92.38% of the stock is owned by hedge funds and other 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.