Wall Street Zen Downgrades Humana (NYSE:HUM) to Hold

Key Points

• Wall Street Zen has downgraded Humana from a "buy" rating to a "hold" rating, reflecting a cautious outlook on the stock.
• Humana's recent earnings report indicated an EPS of $6.27, missing estimates slightly and showcasing a 9.6% year-over-year revenue increase.
• Institutional investors hold 92.38% of Humana, with significant recent stake increases from firms like Dodge & Cox and Vanguard Group.

Humana (NYSE:HUM - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other brokerages also recently weighed in on HUM. Bank of America cut their target price on shares of Humana from $320.00 to $260.00 and set a "neutral" rating for the company in a research note on Tuesday, June 17th. 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 research report on Friday, July 25th. Barclays set a $275.00 target price on shares of Humana and gave the stock an "equal weight" rating in a research report on Thursday. Oppenheimer boosted their price target on Humana from $300.00 to $310.00 and gave the company an "outperform" rating in a report on Thursday, May 1st. Finally, Morgan Stanley decreased their price objective on Humana from $290.00 to $277.00 and set an "equal weight" rating on the stock in a report on Thursday. Seventeen equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to MarketBeat.com, Humana has an average rating of "Hold" and a consensus target price of $281.62.

Humana Stock Down 1.1%

Shares of NYSE HUM opened at $247.19 on Friday. The firm's 50-day moving average is $235.09 and its two-hundred day moving average is $255.24. The company has a market capitalization of $29.73 billion, a PE ratio of 18.97, a price-to-earnings-growth ratio of 1.66 and a beta of 0.44. Humana has a 12-month low of $206.87 and a 12-month high of $382.72. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.95 and a quick ratio of 1.91.

Humana (NYSE:HUM - Get Free Report) last posted its earnings results on Wednesday, July 30th. The insurance provider reported $6.27 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $6.32 by ($0.05). The company had revenue of $32.39 billion during the quarter, compared to analysts' expectations of $31.85 billion. Humana had a net margin of 1.28% and a return on equity of 13.67%. Humana's quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the previous year, the company posted $6.96 EPS. Equities analysts anticipate that Humana will post 16.47 EPS for the current fiscal year.

Institutional Trading of Humana

Large investors have recently added to or reduced their stakes in the stock. Dodge & Cox lifted its stake in shares of Humana by 106.7% during the fourth quarter. Dodge & Cox now owns 10,198,040 shares of the insurance provider's stock worth $2,587,345,000 after purchasing an additional 5,264,045 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Humana by 8.9% during the 1st quarter. Vanguard Group Inc. now owns 13,972,872 shares of the insurance provider's stock valued at $3,697,222,000 after buying an additional 1,143,662 shares during the period. AQR Capital Management LLC lifted its position in Humana by 3,257.5% during the 1st quarter. AQR Capital Management LLC now owns 1,162,600 shares of the insurance provider's stock worth $307,624,000 after acquiring an additional 1,127,973 shares in the last quarter. Leith Wheeler Investment Counsel Ltd. boosted its holdings in Humana by 661.7% in the 2nd quarter. Leith Wheeler Investment Counsel Ltd. now owns 1,038,703 shares of the insurance provider's stock worth $253,942,000 after acquiring an additional 902,340 shares during the period. Finally, GAMMA Investing LLC grew its position in Humana by 40,881.1% in the first quarter. GAMMA Investing LLC now owns 781,099 shares of the insurance provider's stock valued at $2,066,790,000 after acquiring an additional 779,193 shares in the last quarter. 92.38% of the stock is currently owned by institutional investors and hedge funds.

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.

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