Humana (NYSE:HUM) Shares Gap Up – Should You Buy?

Shares of Humana Inc. (NYSE:HUM) gapped up before the market opened on Monday . The stock had previously closed at $269.04, but opened at $281.85. Humana shares last traded at $282.67, with a volume of 312,372 shares.

Analyst Ratings Changes

A number of equities research analysts have issued reports on HUM shares. Deutsche Bank Aktiengesellschaft lowered their price target on Humana from $349.00 to $250.00 and set a “hold” rating for the company in a research report on Thursday, October 3rd. Wells Fargo & Company decreased their target price on Humana from $387.00 to $290.00 and set an “overweight” rating for the company in a report on Monday, November 4th. Leerink Partnrs lowered shares of Humana from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 2nd. Morgan Stanley boosted their price objective on shares of Humana from $288.00 to $301.00 and gave the stock an “equal weight” rating in a research note on Tuesday, December 17th. Finally, Truist Financial raised their target price on shares of Humana from $260.00 to $290.00 and gave the company a “hold” rating in a research note on Monday, January 6th. Twenty research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $302.00.

Humana Stock Performance

The company has a fifty day moving average of $274.33 and a two-hundred day moving average of $309.10. The stock has a market capitalization of $34.02 billion, a P/E ratio of 25.03, a price-to-earnings-growth ratio of 2.12 and a beta of 0.55. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.76 and a quick ratio of 1.76.

Humana (NYSE:HUM) last issued its quarterly earnings results on Wednesday, October 30th. The insurance provider reported $4.16 earnings per share for the quarter, beating analysts’ consensus estimates of $3.48 by $0.68. The business had revenue of $29.30 billion during the quarter, compared to the consensus estimate of $28.66 billion. Humana had a return on equity of 13.20% and a net margin of 1.18%. On average, equities analysts anticipate that Humana Inc. will post 16.14 EPS for the current year.

Humana Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Tuesday, December 31st will be given a $0.885 dividend. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $3.54 dividend on an annualized basis and a dividend yield of 1.25%. Humana’s payout ratio is currently 31.36%.

Insider Activity

In related news, insider Timothy S. Huval sold 3,703 shares of the stock in a transaction dated Tuesday, December 31st. The shares were sold at an average price of $256.26, for a total transaction of $948,930.78. Following the sale, the insider now owns 8,181 shares in the company, valued at $2,096,463.06. This represents a 31.16 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Humana

Institutional investors have recently made changes to their positions in the stock. Atlas Brown Inc. lifted its holdings in shares of Humana by 0.6% in the 4th quarter. Atlas Brown Inc. now owns 6,352 shares of the insurance provider’s stock worth $1,611,000 after purchasing an additional 38 shares during the last quarter. Moors & Cabot Inc. boosted its holdings in shares of Humana by 2.5% during the third quarter. Moors & Cabot Inc. now owns 1,639 shares of the insurance provider’s stock valued at $519,000 after acquiring an additional 40 shares during the period. OLD National Bancorp IN grew its position in shares of Humana by 1.8% during the third quarter. OLD National Bancorp IN now owns 2,613 shares of the insurance provider’s stock worth $828,000 after acquiring an additional 45 shares during the last quarter. Your Advocates Ltd. LLP grew its position in shares of Humana by 81.8% during the third quarter. Your Advocates Ltd. LLP now owns 100 shares of the insurance provider’s stock worth $32,000 after acquiring an additional 45 shares during the last quarter. Finally, Brooklyn Investment Group increased its holdings in shares of Humana by 6.7% in the 3rd quarter. Brooklyn Investment Group now owns 736 shares of the insurance provider’s stock worth $233,000 after acquiring an additional 46 shares during the period. 92.38% of the stock is owned by institutional investors.

Humana Company Profile

Humana Inc, together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits.