Humana (NYSE:HUM) Shares Up 1.4% After Dividend Announcement

Humana Inc. (NYSE:HUM) shares shot up 1.4% during mid-day trading on Friday after the company announced a dividend. The company traded as high as $329.71 and last traded at $329.33. 230,094 shares changed hands during trading, a decline of 88% from the average session volume of 1,985,120 shares. The stock had previously closed at $324.83.

The newly announced dividend which will be paid on Friday, July 26th. Shareholders of record on Friday, June 28th will be given a $0.885 dividend. This represents a $3.54 annualized dividend and a yield of 1.08%. Humana’s payout ratio is presently 17.86%.

Analyst Upgrades and Downgrades

HUM has been the topic of a number of research reports. Raymond James initiated coverage on shares of Humana in a research report on Friday, March 22nd. They set a “market perform” rating on the stock. Deutsche Bank Aktiengesellschaft lowered Humana from a “buy” rating to a “hold” rating and decreased their price objective for the company from $595.00 to $360.00 in a research report on Thursday, January 25th. Argus downgraded Humana from a “buy” rating to a “hold” rating in a research report on Wednesday, March 13th. Cantor Fitzgerald reiterated a “neutral” rating and issued a $391.00 price target on shares of Humana in a report on Wednesday, April 10th. Finally, Stephens dropped their price objective on Humana from $550.00 to $430.00 and set an “overweight” rating for the company in a report on Friday, January 26th. Eleven research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat, Humana currently has an average rating of “Hold” and an average price target of $465.42.

Humana Trading Up 1.3 %

The company has a fifty day simple moving average of $343.55 and a two-hundred day simple moving average of $425.01. The stock has a market capitalization of $39.69 billion, a P/E ratio of 16.62, a price-to-earnings-growth ratio of 1.90 and a beta of 0.45. The company has a quick ratio of 1.59, a current ratio of 1.59 and a debt-to-equity ratio of 0.63.

Humana (NYSE:HUM) last issued its quarterly earnings data on Thursday, January 25th. The insurance provider reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.76 by ($0.87). Humana had a net margin of 2.34% and a return on equity of 19.44%. The business had revenue of $26.46 billion during the quarter, compared to analyst estimates of $25.47 billion. During the same quarter in the prior year, the firm posted $1.62 earnings per share. Humana’s revenue for the quarter was up 17.9% compared to the same quarter last year. On average, sell-side analysts expect that Humana Inc. will post 16.06 earnings per share for the current year.

Insider Activity

In related news, Director Jorge S. Mesquita acquired 545 shares of the company’s stock in a transaction that occurred on Tuesday, February 20th. The shares were acquired at an average cost of $367.09 per share, for a total transaction of $200,064.05. Following the completion of the acquisition, the director now directly owns 2,578 shares in the company, valued at approximately $946,358.02. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.32% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Rakuten Securities Inc. acquired a new stake in Humana in the 4th quarter valued at $25,000. Point72 Europe London LLP acquired a new stake in shares of Humana in the fourth quarter valued at about $26,000. Gradient Investments LLC boosted its position in Humana by 200.0% during the fourth quarter. Gradient Investments LLC now owns 60 shares of the insurance provider’s stock valued at $27,000 after purchasing an additional 40 shares during the last quarter. Cetera Trust Company N.A acquired a new position in Humana during the fourth quarter valued at approximately $28,000. Finally, Sunbelt Securities Inc. bought a new position in Humana in the first quarter valued at approximately $28,000. 92.38% of the stock is currently owned by institutional investors.

About Humana

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.