Humana (NYSE:HUM) Hits New 12-Month High - Here's What Happened

Key Points

• Humana shares reached a new 52-week high, trading as high as $456.50 after previously closing at $387.12, driven largely by optimism around its Medicare Advantage business.
• Improved Medicare Advantage Star Ratings place 95% of Humana’s members in plans rated four stars or higher for 2027, potentially boosting bonus revenue and supporting the company’s longer-term recovery.
• Analyst sentiment has generally improved, with Cantor Fitzgerald upgrading Humana to Overweight and Baird maintaining an Outperform rating, while the company reaffirmed its 2026 adjusted earnings outlook.

Humana Inc. (NYSE:HUM - Get Free Report)'s share price reached a new 52-week high during trading on Friday. The company traded as high as $456.50 and last traded at $439.3370, with a volume of 941075 shares. The stock had previously closed at $387.12.

More Humana News

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Major improvement in plan quality ratings: Humana said 95% of its Medicare Advantage members are enrolled in plans rated four stars or higher for 2027, including 42% in 4.5-star plans. Six contracts received 4.5 stars and 12 received four stars. The improvement positions Humana as one of the biggest beneficiaries of the ratings cycle and could increase eligibility for quality-related bonus payments. Humana Announces Improved CMS Star Ratings
• Positive Sentiment: Potential earnings and revenue tailwind: Higher ratings may support bonus revenue and improve the competitiveness of Humana’s Medicare Advantage offerings. Reports also said the company raised its outlook for 2028 Stars-related revenue, reinforcing expectations for a Medicare Advantage recovery. Humana boosts 2028 Stars revenue outlook
• Positive Sentiment: Analyst sentiment improved: Baird and Barclays issued bullish commentary on Humana’s Medicare Advantage recovery, while Cantor Fitzgerald raised its rating to Overweight. The ratings announcement has also led to comparisons showing Humana outperforming some rivals, including CVS and Alignment Healthcare. Humana Gets Bullish Calls From Baird and Barclays
• Neutral Sentiment: 2026 outlook reaffirmed: Humana maintained its full-year adjusted earnings guidance, reducing the risk of an immediate outlook reset while leaving the improved Star Ratings as the primary new catalyst for investors. Humana Reaffirms Full-Year 2026 Adjusted Earnings Outlook

Wall Street Analyst Weigh In

A number of research firms have recently commented on HUM. Lake Street Capital started coverage on Humana in a report on Thursday, July 30th. They set a "buy" rating for the company. Cantor Fitzgerald raised Humana from a "neutral" rating to an "overweight" rating and lifted their target price for the company from $300.00 to $460.00 in a research report on Wednesday. Wall Street Zen downgraded shares of Humana from a "buy" rating to a "hold" rating in a report on Sunday, September 27th. Robert W. Baird set a $596.00 target price on Humana and gave the stock an "outperform" rating in a report on Friday. Finally, JPMorgan Chase & Co. increased their price target on Humana from $316.00 to $393.00 and gave the stock a "neutral" rating in a report on Monday, August 10th. Seventeen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Humana presently has an average rating of "Moderate Buy" and an average target price of $445.74.

Humana Price Performance

The firm has a 50-day moving average price of $387.26 and a 200-day moving average price of $332.87. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.74 and a current ratio of 1.74. The stock has a market cap of $51.97 billion, a P/E ratio of 40.93, a price-to-earnings-growth ratio of 2.45 and a beta of 0.74.

Humana (NYSE:HUM - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, topping analysts' consensus estimates of $7.27 by $0.34. Humana had a net margin of 0.88% and a return on equity of 11.20%. The company had revenue of $40.89 billion for the quarter, compared to the consensus estimate of $40.58 billion. During the same period in the previous year, the firm earned $6.27 EPS. Humana's revenue was up 26.2% on a year-over-year basis. On average, analysts forecast that Humana Inc. will post 9.01 earnings per share for the current fiscal year.

Humana Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, October 30th will be given a dividend of $0.8850 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $3.54 dividend on an annualized basis and a yield of 0.8%. Humana's dividend payout ratio is presently 33.49%.

Institutional Investors Weigh In On Humana

Hedge funds and other institutional investors have recently modified their holdings of the stock. Chapin Davis Inc. acquired a new stake in Humana during the 3rd quarter worth about $12,323,000. GAMMA Investing LLC raised its holdings in Humana by 27.4% during the third quarter. GAMMA Investing LLC now owns 1,996 shares of the insurance provider's stock valued at $762,000 after buying an additional 429 shares in the last quarter. Gradient Investments LLC raised its holdings in shares of Humana by 2.5% during the third quarter. Gradient Investments LLC now owns 13,738 shares of the insurance provider's stock valued at $5,242,000 after acquiring an additional 330 shares in the last quarter. Valeo Financial Advisors LLC lifted its stake in Humana by 15.3% in the third quarter. Valeo Financial Advisors LLC now owns 814 shares of the insurance provider's stock worth $310,000 after purchasing an additional 108 shares during the last quarter. Finally, Vista Investment Partners LLC purchased a new stake in shares of Humana during the 3rd quarter valued at approximately $3,254,000. Institutional investors own 92.38% of the company's stock.

About Humana

Humana Inc is a health and well-being company headquartered in Louisville, Kentucky. Founded in 1961, the company began as a nursing home operator before expanding into hospitals and health insurance. Today, Humana primarily provides health insurance products and healthcare services for older adults, individuals, military families and other members in the United States.

Humana's insurance business offers Medicare Advantage, Medicare Supplement and prescription drug plans, as well as Medicaid coverage in select markets.

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