Humana (NYSE:HUM) Shares Down 1.1% After Analyst Downgrade

Humana Inc. (NYSE:HUM) dropped 1.1% on Friday after Royal Bank of Canada lowered their price target on the stock from $415.00 to $353.00. Royal Bank of Canada currently has an outperform rating on the stock. Humana traded as low as $307.00 and last traded at $308.01. Approximately 304,738 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 1,983,508 shares. The stock had previously closed at $311.41.

A number of other research analysts have also recently issued reports on HUM. Raymond James began coverage on shares of Humana in a report on Friday, March 22nd. They set a “market perform” rating for the company. Deutsche Bank Aktiengesellschaft lowered shares of Humana from a “buy” rating to a “hold” rating and decreased their price target for the company from $595.00 to $360.00 in a report on Thursday, January 25th. Argus downgraded Humana from a “buy” rating to a “hold” rating in a research note on Wednesday, March 13th. Oppenheimer decreased their target price on Humana from $415.00 to $370.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, TD Cowen dropped their price target on Humana from $427.00 to $396.00 and set a “buy” rating on the stock in a research report on Tuesday, April 2nd. Eleven equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $433.74.

Insider Buying and Selling at Humana

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

Hedge Funds Weigh In On Humana

Institutional investors have recently added to or reduced their stakes in the company. Dorsey & Whitney Trust CO LLC grew its position in shares of Humana by 2.6% in the 3rd quarter. Dorsey & Whitney Trust CO LLC now owns 817 shares of the insurance provider’s stock valued at $397,000 after acquiring an additional 21 shares during the period. UMB Bank n.a. grew its holdings in Humana by 2.8% during the third quarter. UMB Bank n.a. now owns 805 shares of the insurance provider’s stock worth $392,000 after purchasing an additional 22 shares during the period. First Financial Corp IN grew its holdings in Humana by 7.2% during the fourth quarter. First Financial Corp IN now owns 343 shares of the insurance provider’s stock worth $157,000 after purchasing an additional 23 shares during the period. PDS Planning Inc increased its position in Humana by 4.1% during the third quarter. PDS Planning Inc now owns 609 shares of the insurance provider’s stock worth $296,000 after buying an additional 24 shares during the last quarter. Finally, First Trust Direct Indexing L.P. raised its stake in Humana by 0.8% in the third quarter. First Trust Direct Indexing L.P. now owns 2,926 shares of the insurance provider’s stock valued at $1,424,000 after buying an additional 24 shares during the period. 92.38% of the stock is currently owned by institutional investors and hedge funds.

Humana Stock Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 1.67 and a quick ratio of 1.59. The stock has a 50-day moving average price of $328.56 and a 200-day moving average price of $395.71. The company has a market capitalization of $37.17 billion, a price-to-earnings ratio of 19.18, a PEG ratio of 1.85 and a beta of 0.45.

Humana (NYSE:HUM) last posted its quarterly earnings results on Wednesday, April 24th. The insurance provider reported $7.23 earnings per share for the quarter, beating analysts’ consensus estimates of $6.12 by $1.11. Humana had a return on equity of 17.76% and a net margin of 1.82%. The business had revenue of $29.61 billion for the quarter, compared to analysts’ expectations of $28.52 billion. During the same quarter in the prior year, the business earned $9.38 EPS. The firm’s revenue for the quarter was up 10.7% on a year-over-year basis. As a group, analysts forecast that Humana Inc. will post 16.06 earnings per share for the current year.

Humana Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 26th. Investors of record on Friday, June 28th will be issued a dividend of $0.885 per share. This represents a $3.54 annualized dividend and a dividend yield of 1.15%. The ex-dividend date of this dividend is Friday, June 28th. Humana’s payout ratio is 22.04%.

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.