Wolfe Research Cuts Humana (NYSE:HUM) Price Target to $250.00

Key Points

• Wolfe Research cut its price target on Humana from $325 to $250 while maintaining an "outperform" rating, a level that implies roughly a 27% upside from the prior close.
• Multiple analysts have trimmed targets recently (e.g., Barclays, TD Cowen, JPMorgan), leaving the consensus a "Hold" with an average price target of about $222.22.
• Regulatory news is a near-term catalyst: CMS finalized a 2.48% increase to Medicare Advantage payments for 2027 (about $13B industrywide), which helped push Humana shares up roughly 12% as investors repriced MA revenue and margin expectations.

Humana (NYSE:HUM - Get Free Report) had its price target lowered by equities researchers at Wolfe Research from $325.00 to $250.00 in a research note issued to investors on Monday,MarketScreener reports. The firm currently has an "outperform" rating on the insurance provider's stock. Wolfe Research's price objective suggests a potential upside of 27.45% from the stock's previous close.

Other equities analysts also recently issued research reports about the company. Barclays dropped their price objective on Humana from $245.00 to $176.00 and set an "equal weight" rating on the stock in a report on Tuesday, February 24th. Robert W. Baird cut their target price on shares of Humana from $280.00 to $264.00 and set a "neutral" rating for the company in a research report on Thursday, December 11th. TD Cowen dropped their price target on Humana from $260.00 to $173.00 and set a "hold" rating on the stock in a research report on Friday, February 13th. Wells Fargo & Company lowered their price target on Humana from $290.00 to $206.00 and set an "equal weight" rating on the stock in a research note on Wednesday, February 18th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Humana from $274.00 to $180.00 and set a "neutral" rating on the stock in a report on Friday, February 13th. Seven equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $222.22.

Humana Stock Up 7.4%

Humana stock opened at $196.16 on Monday. Humana has a twelve month low of $163.11 and a twelve month high of $315.35. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.00 and a current ratio of 2.00. The firm has a market cap of $23.55 billion, a PE ratio of 20.17, a P/E/G ratio of 1.90 and a beta of 0.44. The firm's 50 day moving average price is $180.71 and its two-hundred day moving average price is $234.30.

Humana (NYSE:HUM - Get Free Report) last issued its earnings results on Wednesday, February 11th. The insurance provider reported ($3.96) earnings per share (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 quarter last year, the business posted ($2.16) EPS. The company's revenue for the quarter was up 11.3% on a year-over-year basis. Humana has set its FY 2026 guidance at 9.000-9.000 EPS. On average, research analysts predict that Humana will post 16.47 EPS for the current fiscal year.

Insider Buying and Selling at Humana

In other Humana news, insider Sanjay K. Shetty purchased 810 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The stock was acquired at an average cost of $185.21 per share, with a total value of $150,020.10. Following the completion of the acquisition, the insider directly owned 11,657 shares of the company's stock, valued at $2,158,992.97. This represents a 7.47% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.20% of the company's stock.

Hedge Funds Weigh In On Humana

Hedge funds have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC grew its position in Humana by 9.1% in the fourth quarter. Hsbc Holdings PLC now owns 330,794 shares of the insurance provider's stock valued at $85,107,000 after purchasing an additional 27,530 shares in the last quarter. Reflection Asset Management acquired a new stake in shares of Humana in the fourth quarter valued at about $29,000. Invesco Ltd. raised its holdings in Humana by 9.3% during the fourth quarter. Invesco Ltd. now owns 2,233,130 shares of the insurance provider's stock worth $571,972,000 after acquiring an additional 189,670 shares in the last quarter. Corient Private Wealth LLC boosted its position in Humana by 329.3% during the fourth quarter. Corient Private Wealth LLC now owns 120,104 shares of the insurance provider's stock valued at $30,762,000 after purchasing an additional 92,125 shares during the last quarter. Finally, Ameriflex Group Inc. bought a new position in shares of Humana in the 4th quarter valued at about $128,000. Institutional investors and hedge funds own 92.38% of the company's stock.

Humana News Roundup

Here are the key news stories impacting Humana this week:

• Positive Sentiment: CMS finalized a 2.48% increase to Medicare Advantage payments for 2027 (well above the 0.09% proposed figure), adding roughly $13B industrywide and improving Humana’s near‑term revenue and margin outlook for its Medicare Advantage business. Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers - CNBC
• Positive Sentiment: Market reaction: Humana shares jumped roughly 12% on the news as investors reprice the company for stronger 2027 MA revenues; peers (UnitedHealth, CVS, Elevance) also rallied, reflecting a sector‑wide re-rating. Humana (HUM) Stock Rockets 12% on Medicare Advantage Payment Rate Revelation
• Neutral Sentiment: Analyst and investor notes are comparing Humana to larger peers (UnitedHealth) to reassess which name offers better risk/reward after the CMS surprise; these analyses will influence flows but don’t change the underlying CMS-driven revenue boost. UnitedHealth (UNH) or Humana (HUM): Which Stock Is the Better Buy After CMS’ Surprise Rate Hike
• Neutral Sentiment: Company press: Humana released its 2025 Impact Report (corporate responsibility and care initiatives). Useful for brand/long-term positioning but unlikely to be the main driver of today's move. Humana Releases 2025 Impact Report, Highlighting Progress Towards Simpler, More Affordable Care for People and Communities
• Neutral Sentiment: General market coverage and summaries (CNN/Yahoo/MSN/Benzinga) are amplifying the CMS decision and the stock move; they help momentum but don't add new fundamental information. Humana shares surge 12% on 2027 Medicare rate boost; UNH, CVS rally - Yahoo Finance

Humana Company Profile

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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