Humana (NYSE:HUM) Shares Gap Up on Analyst Upgrade

Humana Inc. (NYSE:HUM) shares gapped up prior to trading on Tuesday after Wells Fargo & Company raised their price target on the stock from $206.00 to $227.00. The stock had previously closed at $182.65, but opened at $202.00. Wells Fargo & Company currently has an equal weight rating on the stock. Humana shares last traded at $191.9550, with a volume of 1,785,125 shares changing hands.

Several other analysts have also recently commented on HUM. TD Cowen lowered their target price on Humana from $260.00 to $173.00 and set a “hold” rating on the stock in a research report on Friday, February 13th. Royal Bank Of Canada cut Humana from an “outperform” rating to a “sector perform” rating and lowered their target price for the company from $322.00 to $189.00 in a research report on Thursday, February 12th. Zacks Research upgraded Humana from a “strong sell” rating to a “hold” rating in a research report on Thursday, March 5th. Raymond James Financial lowered their target price on Humana from $340.00 to $230.00 and set an “outperform” rating on the stock in a research report on Friday, February 13th. Finally, Deutsche Bank Aktiengesellschaft set a $180.00 target price on Humana and gave the company a “hold” rating in a research report on Friday, February 13th. Seven equities research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Humana has an average rating of “Hold” and an average target price of $223.13.

Insider Activity

In other news, insider Sanjay K. Shetty purchased 810 shares of the stock in a transaction dated Monday, February 23rd. The shares were bought at an average cost of $185.21 per share, for a total transaction of $150,020.10. Following the transaction, the insider owned 11,657 shares in the company, valued at $2,158,992.97. This trade represents a 7.47% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.20% 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

Hedge Funds Weigh In On Humana

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

Humana Trading Up 5.4%

The firm has a market capitalization of $23.11 billion, a P/E ratio of 19.59, a price-to-earnings-growth ratio of 1.90 and a beta of 0.44. 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 50 day moving average price of $180.71 and a two-hundred day moving average price of $234.30.

Humana (NYSE:HUM) last released its quarterly earnings data on Wednesday, February 11th. The insurance provider reported ($3.96) earnings per share for the quarter, topping the consensus estimate of ($4.01) by $0.05. The business had revenue of $32.64 billion during the quarter, compared to analyst estimates of $32.08 billion. Humana had a return on equity of 11.43% and a net margin of 0.92%.The company’s revenue was up 11.3% compared to the same quarter last year. During the same period last year, the company posted ($2.16) EPS. Humana has set its FY 2026 guidance at 9.000-9.000 EPS. On average, equities research analysts expect that Humana Inc. will post 16.47 EPS for the current fiscal year.

Humana Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Stockholders of record on Friday, March 27th will be paid a dividend of $0.885 per share. The ex-dividend date of this dividend is Friday, March 27th. This represents a $3.54 annualized dividend and a dividend yield of 1.8%. Humana’s dividend payout ratio (DPR) is currently 36.05%.

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.