Humana Inc. (NYSE:HUM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.

According to Zacks, “Humana thrives for long term growth on prudent inorganic growth, efficient capital deployment and business diversifications. Solid performance by Individual Medicare Advantage and Healthcare Services Business led Humana to raise its guidance. The Zacks Consensus Estimate has been witnessing upward revision since last 60 days leading to a 5% and 7.8% increase in 2016 and 2017 estimates respectively. Moreover, in three of the last four quarters, the company has recorded a positive earning surprise with an average beat of 1.32%. Nevertheless, the company faces increased competition, weakness in individual commercial business, increasing expenses, and softness in its group Medicare Advantage business. Moreover, the merger with Aetna has been objected by the U.S. Department of Justice. Hence, the deal that would have enhanced Humana’s market power now remains shrouded in uncertainty.”

Other equities research analysts also recently issued research reports about the stock. Leerink Swann reissued an “outperform” rating on shares of Humana in a research report on Tuesday, June 21st. Credit Suisse Group AG reissued a “hold” rating on shares of Humana in a research report on Tuesday, June 28th. Argus reissued a “hold” rating on shares of Humana in a research report on Tuesday, August 23rd. Cantor Fitzgerald reissued a “buy” rating on shares of Humana in a research report on Monday, August 8th. Finally, Wolfe Research began coverage on shares of Humana in a research report on Tuesday, June 28th. They set a “market perform” rating and a $244.00 price target for the company. Six investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The stock has an average rating of “Buy” and an average target price of $201.00.

Shares of Humana (NYSE:HUM) opened at 175.99 on Wednesday. The company has a market cap of $26.23 billion, a PE ratio of 27.04 and a beta of 0.91. The firm’s 50-day moving average is $177.42 and its 200-day moving average is $176.67. Humana has a one year low of $150.00 and a one year high of $191.65.

Humana (NYSE:HUM) last announced its earnings results on Wednesday, August 3rd. The insurance provider reported $2.30 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.23 by $0.07. Humana had a net margin of 1.76% and a return on equity of 11.11%. The business earned $14 billion during the quarter, compared to the consensus estimate of $13.59 billion. During the same quarter last year, the firm earned $1.67 earnings per share. The business’s revenue for the quarter was up 2.0% on a year-over-year basis. On average, equities analysts anticipate that Humana will post $9.26 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Friday, October 28th. Investors of record on Thursday, October 13th will be paid a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.66%. The ex-dividend date is Tuesday, October 11th. Humana’s dividend payout ratio (DPR) is 18.18%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Humana by 2.5% in the second quarter. Vanguard Group Inc. now owns 8,964,492 shares of the insurance provider’s stock worth $1,612,532,000 after buying an additional 219,311 shares during the period. BlackRock Institutional Trust Company N.A. increased its stake in shares of Humana by 3.2% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,908,027 shares of the insurance provider’s stock worth $702,976,000 after buying an additional 120,720 shares in the last quarter. Arrowgrass Capital Partners US LP increased its stake in shares of Humana by 1.8% in the first quarter. Arrowgrass Capital Partners US LP now owns 2,878,848 shares of the insurance provider’s stock worth $526,685,000 after buying an additional 51,267 shares in the last quarter. Evercore Trust Company N.A. increased its stake in shares of Humana by 3.0% in the second quarter. Evercore Trust Company N.A. now owns 2,570,366 shares of the insurance provider’s stock worth $462,357,000 after buying an additional 75,126 shares in the last quarter. Finally, BlackRock Fund Advisors increased its stake in shares of Humana by 2.5% in the second quarter. BlackRock Fund Advisors now owns 2,074,281 shares of the insurance provider’s stock worth $373,122,000 after buying an additional 51,378 shares in the last quarter. Institutional investors own 93.24% of the company’s stock.

Humana Company Profile

Humana Inc is a health and well-being company. The Company’s segments include Retail, Group, Healthcare Services and Other Businesses. The Retail segment consists of Medicare benefits, marketed to individuals or directly via group accounts, as well as individual commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products.

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