Humana (HUM) Cut to Hold at Zacks Investment Research

Share on StockTwits

Zacks Investment Research cut shares of Humana (NYSE:HUM) from a buy rating to a hold rating in a research note issued to investors on Wednesday.

According to Zacks, “Shares of Humana have outperformed its industry’s growth year to date. Moreover, the company has witnessed its 2018 and 2019 earnings estimates move upward over the last seven days. The insurer is well-poised for growth on its strong Medicare business. Its top line has been witnessing an uptrend for the past several years. Sufficient generation of cash flow has helped the company take up many capital deployment initiatives aimed at enhancing its shareholder value. Humana’s sound balance sheet and a disciplined capital management remain its major tailwinds. Acquisitions and dispositions made by the company have also led to business growth over the last few quarters. Following the solid second-quarter results and the buyouts of Curo Healthcare and Kindred, the company provided a bullish EPS guidance for 2018. However, its rising level of expenses persistently weighs on the bottom line.”

HUM has been the topic of several other reports. Bank of America boosted their price objective on Humana from $338.00 to $375.00 and gave the company a buy rating in a research report on Thursday, August 2nd. Piper Jaffray Companies boosted their price objective on Humana from $326.00 to $350.00 and gave the company an overweight rating in a research report on Friday, July 6th. Cantor Fitzgerald restated a hold rating and issued a $250.00 price objective on shares of Humana in a research report on Monday, April 23rd. ValuEngine downgraded Humana from a buy rating to a hold rating in a research report on Saturday, June 2nd. Finally, BMO Capital Markets boosted their price objective on Humana from $328.00 to $355.00 and gave the company an outperform rating in a research report on Monday, June 25th. Seven investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. The company has a consensus rating of Buy and an average target price of $318.17.

Shares of Humana stock traded up $1.33 during trading hours on Wednesday, hitting $325.04. The company’s stock had a trading volume of 380,645 shares, compared to its average volume of 593,218. Humana has a 12-month low of $231.90 and a 12-month high of $327.50. The company has a market capitalization of $44.60 billion, a price-to-earnings ratio of 25.35, a PEG ratio of 1.61 and a beta of 0.93. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 0.47.

Humana (NYSE:HUM) last announced its quarterly earnings data on Wednesday, August 1st. The insurance provider reported $3.96 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $3.79 by $0.17. Humana had a return on equity of 17.43% and a net margin of 2.48%. The business had revenue of $14.26 billion for the quarter, compared to the consensus estimate of $14.16 billion. During the same period in the previous year, the business earned $3.49 earnings per share. equities analysts expect that Humana will post 14.18 earnings per share for the current year.

In other Humana news, insider Christopher H. Hunter sold 24,182 shares of the business’s stock in a transaction that occurred on Wednesday, June 13th. The stock was sold at an average price of $305.99, for a total transaction of $7,399,450.18. Following the sale, the insider now directly owns 15,322 shares of the company’s stock, valued at $4,688,378.78. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider William Kevin Fleming sold 15,637 shares of the business’s stock in a transaction that occurred on Monday, June 4th. The stock was sold at an average price of $293.08, for a total value of $4,582,891.96. Following the sale, the insider now directly owns 15,650 shares in the company, valued at $4,586,702. The disclosure for this sale can be found here. Insiders sold 104,976 shares of company stock worth $32,165,337 over the last ninety days. Insiders own 0.60% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of HUM. FDx Advisors Inc. increased its stake in Humana by 42.7% during the first quarter. FDx Advisors Inc. now owns 2,248 shares of the insurance provider’s stock worth $604,000 after acquiring an additional 673 shares during the last quarter. Daiwa Securities Group Inc. increased its stake in Humana by 161.3% during the first quarter. Daiwa Securities Group Inc. now owns 11,478 shares of the insurance provider’s stock worth $3,086,000 after acquiring an additional 7,086 shares during the last quarter. Dean Capital Investments Management LLC increased its stake in Humana by 85.1% during the first quarter. Dean Capital Investments Management LLC now owns 4,171 shares of the insurance provider’s stock worth $1,121,000 after acquiring an additional 1,918 shares during the last quarter. Commerzbank Aktiengesellschaft FI boosted its position in shares of Humana by 338.9% during the first quarter. Commerzbank Aktiengesellschaft FI now owns 7,913 shares of the insurance provider’s stock valued at $2,127,000 after buying an additional 6,110 shares during the period. Finally, Alps Advisors Inc. boosted its position in shares of Humana by 130.4% during the first quarter. Alps Advisors Inc. now owns 3,341 shares of the insurance provider’s stock valued at $898,000 after buying an additional 1,891 shares during the period. 93.78% of the stock is currently owned by institutional investors.

About Humana

Humana Inc, together with its subsidiaries, operates as a health and well-being company in the United States. The company operates through four segments: Retail; Group and Specialty; Healthcare Services; and Individual Commercial. The Retail segment offers Medicare and supplemental benefit plans to individuals or through group accounts.

Further Reading: Leveraged Buyout (LBO) Explained

Get a free copy of the Zacks research report on Humana (HUM)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Humana (NYSE:HUM)

Receive News & Ratings for Humana Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Humana and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply