Humana (NYSE:HUM) Upgraded to Buy at Bank of America

Key Points

• Bank of America upgraded Humana to “buy” from “neutral” and set a $500 price target, implying 37.9% upside from the prior close.
• Humana’s latest quarter exceeded expectations, with EPS of $7.61 versus $7.26 expected and revenue of $40.89 billion, up 26.2% year over year.
• Despite affirming adjusted 2026 EPS guidance of at least $9.00, Humana cut its GAAP EPS outlook to at least $6.52 from $8.36 because of lower Medicare Advantage Star Ratings.

Humana (NYSE:HUM - Get Free Report) was upgraded by Bank of America from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Wednesday, Marketbeat Ratings reports. The brokerage presently has a $500.00 price objective on the insurance provider's stock. Bank of America's price objective points to a potential upside of 37.90% from the company's previous close.

HUM has been the topic of a number of other research reports. UBS Group reiterated a "neutral" rating on shares of Humana in a research report on Monday, June 15th. William Blair started coverage on Humana in a research note on Wednesday, May 20th. They issued an "outperform" rating for the company. JPMorgan Chase & Co. lifted their price target on Humana from $214.00 to $316.00 and gave the stock a "neutral" rating in a report on Monday, June 8th. Oppenheimer raised shares of Humana from an "outperform" rating to an "outperform" rating in a research note on Wednesday, May 20th. Finally, Truist Financial upped their price objective on Humana from $320.00 to $415.00 and gave the company a "hold" rating in a report on Tuesday, July 14th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $331.09.

Humana Stock Performance

Shares of NYSE HUM traded down $26.12 during midday trading on Wednesday, hitting $362.59. 549,101 shares of the stock traded hands, compared to its average volume of 1,789,312. Humana has a one year low of $163.11 and a one year high of $428.88. The firm has a market capitalization of $43.53 billion, a P/E ratio of 38.87, a PEG ratio of 2.07 and a beta of 0.71. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.77 and a current ratio of 1.77. The firm has a 50-day moving average of $367.16 and a two-hundred day moving average of $266.44.

Humana (NYSE:HUM - Get Free Report) last issued its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.26 by $0.35. Humana had a return on equity of 10.45% and a net margin of 0.82%.The company had revenue of $40.89 billion for the quarter, compared to the consensus estimate of $40.57 billion. During the same quarter last year, the company earned $6.27 EPS. The firm's quarterly revenue was up 26.2% on a year-over-year basis. On average, equities analysts forecast that Humana will post 9.46 EPS for the current fiscal year.

Institutional Trading of Humana

Several institutional investors and hedge funds have recently bought and sold shares of HUM. Montag A & Associates Inc. raised its position in shares of Humana by 1,880.0% in the fourth quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider's stock valued at $25,000 after purchasing an additional 94 shares during the period. CoreCap Advisors LLC grew its position in Humana by 54.4% during the 4th quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider's stock worth $27,000 after acquiring an additional 37 shares during the last quarter. Fideuram Asset Management Ireland dac bought a new stake in Humana during the 4th quarter worth about $27,000. Reflection Asset Management bought a new position in Humana in the fourth quarter valued at about $29,000. Finally, Bogart Wealth LLC raised its holdings in Humana by 192.0% in the second quarter. Bogart Wealth LLC now owns 73 shares of the insurance provider's stock worth $29,000 after purchasing an additional 48 shares during the period. Institutional investors and hedge funds own 92.38% of the company's stock.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Q2 results exceeded expectations: Adjusted earnings were $7.61 per share, above the $7.26 analyst consensus, while revenue reached $40.89 billion versus estimates of $40.57 billion. Earnings increased from $6.27 per share a year earlier, and revenue rose 26.2%. Humana Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Medical costs remained controlled: Humana reported a 91.2% Insurance segment benefit ratio, while consolidated pretax income increased to $952 million from $741 million in the prior-year quarter. The company also affirmed approximately 25% individual Medicare Advantage membership growth for 2026 and reported 27% year-to-date patient growth at CenterWell Senior Primary Care. Humana Beats Quarterly Profit Estimates
• Neutral Sentiment: 2026 adjusted outlook maintained: Humana affirmed adjusted EPS guidance of at least $9.00 and reiterated its Insurance segment benefit-ratio and Medicare Advantage membership-growth expectations. The board also expanded from 11 to 13 directors, adding technology and finance expertise. Humana Affirms 2026 Outlook
• Negative Sentiment: GAAP outlook was cut: Humana reduced its 2026 GAAP EPS guidance to at least $6.52 from at least $8.36, citing ongoing pressure from lower 2026 Medicare Advantage Star Ratings. This signals that regulatory plan ratings and benefit costs remain important risks despite the quarterly beat. Humana Cuts Outlook Again on Lower Medicare Ratings

About Humana

Humana Inc NYSE: HUM is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana's products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.

In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.

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