Humana (NYSE:HUM) Upgraded at Raymond James Financial

Raymond James Financial upgraded shares of Humana (NYSE:HUM) from a market perform rating to an outperform rating in a report issued on Monday, Marketbeat.com reports. Raymond James Financial currently has $520.00 price target on the insurance provider’s stock.

HUM has been the topic of several other research reports. Zacks Research cut Humana from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Wolfe Research restated an “outperform” rating and set a $450.00 price objective on shares of Humana in a report on Monday, August 24th. Citigroup initiated coverage on Humana in a research report on Friday, October 9th. They set a “buy” rating for the company. Cantor Fitzgerald upgraded Humana from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $300.00 to $460.00 in a report on Wednesday, October 7th. Finally, Oppenheimer upped their target price on Humana from $405.00 to $475.00 and gave the stock an “outperform” rating in a report on Friday, October 9th. Twenty-one analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $453.30.

Humana Price Performance

Humana stock opened at $428.50 on Monday. The stock has a market cap of $51.45 billion, a price-to-earnings ratio of 40.54, a price-to-earnings-growth ratio of 2.59 and a beta of 0.74. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74. Humana has a 1 year low of $163.11 and a 1 year high of $456.50. The firm has a 50-day moving average of $392.25 and a two-hundred day moving average of $340.06.

Humana (NYSE:HUM) last issued its 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. The business had revenue of $40.89 billion for the quarter, compared to the consensus estimate of $40.58 billion. Humana had a net margin of 0.88% and a return on equity of 11.20%. The company’s revenue for the quarter was up 26.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $6.27 EPS. On average, research analysts forecast that Humana will post 9.03 earnings per share for the current year.

Humana Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, October 30th will be issued a $0.8850 dividend. The ex-dividend date is Friday, October 30th. This represents a $3.54 annualized dividend and a dividend yield of 0.8%. Humana’s payout ratio is currently 33.49%.

Hedge Funds Weigh In On Humana

A number of hedge funds and other institutional investors have recently modified their holdings of HUM. Manning & Napier Advisors LLC purchased a new position in Humana in the second quarter valued at about $1,412,000. The Manufacturers Life Insurance Company raised its holdings in Humana by 10.5% in the second quarter. The Manufacturers Life Insurance Company now owns 70,185 shares of the insurance provider’s stock worth $27,879,000 after purchasing an additional 6,690 shares in the last quarter. Vista Investment Partners LLC bought a new position in Humana in the third quarter worth about $3,254,000. Pzena Investment Management LLC purchased a new stake in shares of Humana during the second quarter valued at about $1,749,014,000. Finally, Ameritas Advisory Services LLC purchased a new stake in shares of Humana during the second quarter valued at about $1,709,000. 92.38% of the stock is currently owned by institutional investors.

Humana News Roundup

Here are the key news stories impacting Humana this week:

• Positive Sentiment: BlackRock partnership provides capital for CenterWell expansion. Humana formed a joint venture with funds managed by BlackRock to operate nearly 150 CenterWell Senior Primary Care clinics. BlackRock will hold the majority stake, while CenterWell retains a minority interest. The reported $2.8 billion transaction should provide funding for clinic growth while reducing the amount of capital and liabilities Humana must carry on its balance sheet. Humana Announces New Strategic Joint Venture with BlackRock
• Positive Sentiment: The deal strengthens Humana’s strategy of expanding CenterWell’s senior-focused primary-care platform. Investors may view the outside capital and BlackRock’s involvement as improving the economics and scalability of the business, although Humana will give up majority ownership of the clinic venture. Humana’s CenterWell Expansion Gets a Boost From BlackRock’s Capital
• Positive Sentiment: A report said Humana expects roughly 95% of its Medicare members to be enrolled in four-star plans, up sharply from 20%. Higher quality ratings can support stronger Medicare Advantage bonus payments, member retention and plan competitiveness, potentially improving Humana’s earnings outlook. Humana Four-Star Plan Report
• Positive Sentiment: Mizuho raised its price target on HUM to $495 from $468 and maintained an “outperform” rating, reinforcing bullish Wall Street sentiment.
• Neutral Sentiment: Unusually high call-option activity and strength across major managed-care stocks indicate bullish positioning and sector support, but options trading does not directly change Humana’s fundamentals.
• Neutral Sentiment: Humana’s Medicare Advantage coverage decision for AngioDynamics’ NanoKnife cancer treatment could broaden patient access, but the financial impact on Humana is unclear and may depend on treatment utilization and medical costs. AngioDynamics Humana Coverage Policy
• Negative Sentiment: A law firm issued a shareholder-investigation notice concerning Humana insiders. The announcement contains no established finding of wrongdoing and appears primarily promotional, but it introduces a potential legal-overhang risk.

Humana Company Profile

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.