Stock Traders Purchase High Volume of Humana Call Options (NYSE:HUM)

Humana Inc. (NYSE:HUM) was the target of some unusual options trading activity on Tuesday. Stock investors acquired 10,990 call options on the stock. This is an increase of approximately 18% compared to the average volume of 9,296 call options.

Wall Street Analyst Weigh In

HUM has been the topic of several research reports. Cantor Fitzgerald reduced their price target on shares of Humana from $290.00 to $201.00 and set a “neutral” rating on the stock in a research report on Thursday, February 12th. Weiss Ratings restated a “sell (d+)” rating on shares of Humana in a research report on Thursday, January 22nd. Wells Fargo & Company boosted their price target on shares of Humana from $206.00 to $227.00 and gave the stock an “equal weight” rating in a research report on Tuesday. Deutsche Bank Aktiengesellschaft set a $180.00 price objective on shares of Humana and gave the stock a “hold” rating in a research note on Friday, February 13th. Finally, Wolfe Research dropped their price objective on shares of Humana from $325.00 to $250.00 and set an “outperform” rating for the company in a research note on Monday. Seven research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Humana has an average rating of “Hold” and an average target price of $223.13.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: CMS finalized a 2.48% increase to Medicare Advantage payments for 2027 — a materially larger boost than the 0.09% proposed rate — directly improving Humana’s Medicare Advantage revenue outlook and industry profitability expectations. UnitedHealth, Humana, CVS Jump As CMS Boosts Medicare Payments
• Positive Sentiment: Market reaction: multiple reports show Humana shares jumping in response to the CMS rate finalization, with after‑hours and intraday gains as investors re-rate MA-focused insurers. This broad sector move supports HUM’s short-term momentum. Humana (HUM) Stock Rockets 12% on Medicare Advantage Payment Rate Revelation
• Positive Sentiment: Fundamentals: Humana recently topped quarterly revenue and EPS estimates and set FY guidance (FY2026 EPS guidance noted previously), giving the rally a stronger foundation than a pure policy-driven pop — better payment rates amplify that improvement. (Company results and guidance published earlier this year.)
• Positive Sentiment: Analyst update: Wells Fargo raised its Humana price target from $206 to $227 (Equal Weight), which supports the near-term upside narrative. Wells Fargo raises Humana price target
• Neutral Sentiment: Corporate/ESG update: Humana released its 2025 Impact Report; useful for longer-term investor assessment but not a driver of today’s price move. Humana Releases 2025 Impact Report
• Neutral Sentiment: Broader coverage: Several market commentary pieces (Zacks, TipRanks) highlight Humana as an earnings/valuation candidate after the CMS surprise — informative for investors but secondary to the payment-rate news. These 2 Medical Stocks Could Beat Earnings
• Negative Sentiment: Offsetting analyst note: Wolfe Research cut its price target from $325 to $250 (still Outperform). The downgrade of the target magnitude tempers some upside narrative and reflects lingering longer-term concerns; investors may weigh this when considering HOLD vs. BUY. Wolfe adjusts price target on Humana to $250 from $325

Humana Stock Up 8.1%

NYSE:HUM traded up $14.78 during mid-day trading on Tuesday, reaching $197.43. The company’s stock had a trading volume of 2,866,216 shares, compared to its average volume of 2,023,687. Humana has a 1 year low of $163.11 and a 1 year high of $315.35. The stock has a fifty day moving average of $180.71 and a 200-day moving average of $234.30. The firm has a market capitalization of $23.70 billion, a PE ratio of 20.10, a price-to-earnings-growth ratio of 1.90 and a beta of 0.44. The company has a quick ratio of 2.00, a current ratio of 2.00 and a debt-to-equity ratio of 0.70.

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

Humana Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, March 27th will be issued a $0.885 dividend. The ex-dividend date is Friday, March 27th. This represents a $3.54 dividend on an annualized basis and a yield of 1.8%. Humana’s payout ratio is currently 36.05%.

Insiders Place Their Bets

In other news, insider Sanjay K. Shetty purchased 810 shares of the stock in a transaction on Monday, February 23rd. The shares were acquired at an average price 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 trade represents a 7.47% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Humana

Several institutional investors and hedge funds have recently made changes to their positions in HUM. Montag A & Associates Inc. increased its position in shares of Humana by 1,880.0% in the 4th quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider’s stock valued at $25,000 after acquiring an additional 94 shares during the period. CoreCap Advisors LLC raised its stake in shares of Humana by 54.4% in the fourth quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider’s stock worth $27,000 after purchasing an additional 37 shares during the last quarter. Fideuram Asset Management Ireland dac acquired a new stake in shares of Humana during the fourth quarter worth about $27,000. Reflection Asset Management acquired a new stake in shares of Humana during the fourth quarter worth about $29,000. Finally, Rosenberg Matthew Hamilton boosted its position in Humana by 136.0% in the fourth quarter. Rosenberg Matthew Hamilton now owns 118 shares of the insurance provider’s stock valued at $30,000 after buying an additional 68 shares during the last quarter. 92.38% of the stock is currently owned by institutional investors and hedge funds.

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.