Stock Traders Purchase High Volume of Humana Call Options (NYSE:HUM)

Key Points

• Investors bought an unusually high number of call options on Humana — 10,990 calls, about an 18% increase vs. the typical daily call volume — signaling bullish short‑term positioning.
• CMS finalized a 2.48% Medicare Advantage payment increase (vs. 0.09% proposed), a surprise boost that lifted Humana shares and improved the company’s MA revenue outlook, with the stock trading up about 8.1% on the news.
• Humana recently beat quarterly revenue and EPS estimates and reiterated FY guidance, but analysts remain mixed: the consensus rating is Hold with a consensus target of about $223, amid several recent price‑target cuts and some upward revisions.

Humana Inc. (NYSE:HUM - Get Free Report) was the target of unusually large options trading activity on Tuesday. Investors bought 10,990 call options on the stock. This is an increase of approximately 18% compared to the typical daily volume of 9,296 call options.

More Humana News

Here are the key news stories impacting Humana this week:

• Positive Sentiment: CMS finalized a 2.48% increase to Medicare Advantage payments for 2027 — a materially larger boost than the 0.09% proposed rate — directly improving Humana’s Medicare Advantage revenue outlook and industry profitability expectations. UnitedHealth, Humana, CVS Jump As CMS Boosts Medicare Payments
• Positive Sentiment: Market reaction: multiple reports show Humana shares jumping in response to the CMS rate finalization, with after‑hours and intraday gains as investors re-rate MA-focused insurers. This broad sector move supports HUM’s short-term momentum. Humana (HUM) Stock Rockets 12% on Medicare Advantage Payment Rate Revelation
• Positive Sentiment: Fundamentals: Humana recently topped quarterly revenue and EPS estimates and set FY guidance (FY2026 EPS guidance noted previously), giving the rally a stronger foundation than a pure policy-driven pop — better payment rates amplify that improvement. (Company results and guidance published earlier this year.)
• Positive Sentiment: Analyst update: Wells Fargo raised its Humana price target from $206 to $227 (Equal Weight), which supports the near-term upside narrative. Wells Fargo raises Humana price target
• Neutral Sentiment: Corporate/ESG update: Humana released its 2025 Impact Report; useful for longer-term investor assessment but not a driver of today’s price move. Humana Releases 2025 Impact Report
• Neutral Sentiment: Broader coverage: Several market commentary pieces (Zacks, TipRanks) highlight Humana as an earnings/valuation candidate after the CMS surprise — informative for investors but secondary to the payment-rate news. These 2 Medical Stocks Could Beat Earnings
• Negative Sentiment: Offsetting analyst note: Wolfe Research cut its price target from $325 to $250 (still Outperform). The downgrade of the target magnitude tempers some upside narrative and reflects lingering longer-term concerns; investors may weigh this when considering HOLD vs. BUY. Wolfe adjusts price target on Humana to $250 from $325

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on HUM shares. Barclays lowered their price target on shares of Humana from $245.00 to $176.00 and set an "equal weight" rating on the stock in a research report on Tuesday, February 24th. Morgan Stanley set a $146.00 price objective on shares of Humana in a research note on Thursday, February 12th. Leerink Partners reduced their price objective on shares of Humana from $267.00 to $185.00 and set a "market perform" rating for the company in a research note on Thursday, February 12th. Guggenheim reduced their price objective on shares of Humana from $312.00 to $252.00 and set a "buy" rating for the company in a research note on Thursday, February 12th. Finally, TD Cowen reduced their price objective on shares of Humana from $260.00 to $173.00 and set a "hold" rating for the company in a research note on Friday, February 13th. Seven analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $223.13.

Humana Trading Up 8.1%

Shares of Humana stock traded up $14.78 during trading on Tuesday, reaching $197.43. The company's stock had a trading volume of 2,866,216 shares, compared to its average volume of 2,023,687. Humana has a 52-week low of $163.11 and a 52-week high of $315.35. The company has a market cap of $23.70 billion, a price-to-earnings ratio of 20.10, a PEG ratio of 1.90 and a beta of 0.44. The firm's 50-day moving average is $180.71 and its two-hundred day moving average is $234.30. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 0.70.

Humana (NYSE:HUM - Get Free Report) last posted its quarterly earnings results on Wednesday, February 11th. The insurance provider reported ($3.96) EPS for the quarter, beating analysts' consensus estimates of ($4.01) by $0.05. Humana had a net margin of 0.92% and a return on equity of 11.43%. The company had revenue of $32.64 billion during the quarter, compared to analyst estimates of $32.08 billion. During the same period in the prior year, the business posted ($2.16) EPS. The firm's revenue was up 11.3% compared to the same quarter last year. Humana has set its FY 2026 guidance at 9.000-9.000 EPS. On average, sell-side analysts anticipate that Humana will post 16.47 earnings per share for the current year.

Humana Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, March 27th will be paid a $0.885 dividend. This represents a $3.54 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Friday, March 27th. Humana's dividend payout ratio (DPR) is presently 36.05%.

Insider Buying and Selling

In related news, insider Sanjay K. Shetty acquired 810 shares of the stock in a transaction on Monday, February 23rd. The shares were acquired at an average price of $185.21 per share, with a total value of $150,020.10. Following the completion of the transaction, the insider owned 11,657 shares in the company, valued at approximately $2,158,992.97. The trade was a 7.47% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.20% of the company's stock.

Institutional Trading of Humana

Institutional investors have recently bought and sold shares of the company. Montag A & Associates Inc. boosted its holdings in shares of Humana by 1,880.0% during the 4th quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider's stock valued at $25,000 after acquiring an additional 94 shares during the last quarter. CoreCap Advisors LLC boosted its holdings in shares of Humana by 54.4% during the 4th quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider's stock valued at $27,000 after acquiring an additional 37 shares during the last quarter. Fideuram Asset Management Ireland dac bought a new position in shares of Humana in the 4th quarter worth approximately $27,000. Reflection Asset Management bought a new position in shares of Humana in the 4th quarter worth approximately $29,000. Finally, Rosenberg Matthew Hamilton lifted its stake in shares of Humana by 136.0% in the 4th quarter. Rosenberg Matthew Hamilton now owns 118 shares of the insurance provider's stock worth $30,000 after purchasing an additional 68 shares during the period. 92.38% of the stock is owned by hedge funds and other institutional investors.

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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