Humana (HUM) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research lowered shares of Humana (NYSE:HUM) from a strong-buy rating to a hold rating in a research note released on Friday, January 19th.

According to Zacks, “Humana is well poised to grow on its strong government business. Its top line has been witnessing an uptrend for past many years. Sufficient generation of cash flow has helped the company take up several capital deployment initiatives aimed at enhancing shareholders’ value. Humana’s sound balance sheet and disciplined capital management remain major tailwinds. Following its strong third-quarter 2017 results, the company raised its 2017  earnings  guidance. Although its shares have underperformed the industry in a year's time, its strong fundamentals are likely to help the stock gain momentum going forward. However, the company's individual commercial business has remained a drag over past few years. Rising level of expenses also continues to weigh on the bottom line. Humana will release its fourth-quarter and full year 2017 results on Feb 7, 2018 before the market opens.”

Several other equities research analysts have also recently weighed in on HUM. JPMorgan Chase & Co. cut Humana from an overweight rating to a neutral rating and set a $253.00 price objective for the company. in a report on Monday, October 9th. ValuEngine cut Humana from a buy rating to a hold rating in a research note on Tuesday, October 10th. Royal Bank of Canada restated a hold rating and issued a $245.00 target price on shares of Humana in a research note on Tuesday, October 10th. Jefferies Group restated a hold rating and issued a $257.00 target price on shares of Humana in a research note on Friday, October 13th. Finally, BMO Capital Markets initiated coverage on Humana in a research note on Monday, October 16th. They issued an outperform rating and a $300.00 target price for the company. Seven research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. The company presently has a consensus rating of Buy and a consensus target price of $270.47.

Humana (NYSE HUM) traded down $0.60 on Friday, reaching $267.47. The company had a trading volume of 1,101,010 shares, compared to its average volume of 1,222,924. The company has a current ratio of 1.85, a quick ratio of 1.61 and a debt-to-equity ratio of 0.48. Humana has a fifty-two week low of $203.36 and a fifty-two week high of $293.35. The company has a market cap of $36,767.10, a price-to-earnings ratio of 16.04, a price-to-earnings-growth ratio of 1.45 and a beta of 0.93.

Humana (NYSE:HUM) last released its quarterly earnings data on Wednesday, February 7th. The insurance provider reported $2.06 earnings per share for the quarter, topping the consensus estimate of $2.00 by $0.06. Humana had a return on equity of 16.13% and a net margin of 4.55%. The business had revenue of $13.19 billion during the quarter, compared to analysts’ expectations of $13.14 billion. During the same quarter last year, the business posted $2.34 EPS. The business’s revenue was up 2.4% on a year-over-year basis. equities research analysts anticipate that Humana will post 13.84 EPS for the current fiscal year.

Humana announced that its Board of Directors has approved a stock buyback program on Thursday, December 14th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the insurance provider to reacquire shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 27th. Shareholders of record on Friday, March 30th will be issued a $0.50 dividend. This is a positive change from Humana’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Wednesday, March 28th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.75%. Humana’s dividend payout ratio (DPR) is presently 9.59%.

In related news, VP Timothy S. Huval sold 1,382 shares of Humana stock in a transaction on Tuesday, December 19th. The stock was sold at an average price of $246.04, for a total transaction of $340,027.28. Following the transaction, the vice president now directly owns 11,557 shares in the company, valued at $2,843,484.28. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Jody L. Bilney sold 7,054 shares of Humana stock in a transaction on Monday, December 18th. The shares were sold at an average price of $247.89, for a total value of $1,748,616.06. Following the transaction, the senior vice president now owns 11,704 shares in the company, valued at $2,901,304.56. The disclosure for this sale can be found here. Insiders sold 10,115 shares of company stock valued at $2,501,627 in the last ninety days. 0.80% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. WFG Advisors LP lifted its position in shares of Humana by 4.5% in the second quarter. WFG Advisors LP now owns 469 shares of the insurance provider’s stock valued at $113,000 after acquiring an additional 20 shares in the last quarter. Fieldpoint Private Securities LLC purchased a new position in shares of Humana in the third quarter valued at about $115,000. American Beacon Advisors Inc. purchased a new position in shares of Humana in the fourth quarter valued at about $122,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Humana by 139.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 558 shares of the insurance provider’s stock valued at $134,000 after acquiring an additional 325 shares in the last quarter. Finally, ClariVest Asset Management LLC purchased a new position in shares of Humana in the third quarter valued at about $144,000. Institutional investors own 94.13% of the company’s stock.

COPYRIGHT VIOLATION NOTICE: This report was originally reported by Dispatch Tribunal and is owned by of Dispatch Tribunal. If you are viewing this report on another domain, it was copied illegally and republished in violation of US & international trademark and copyright laws. The legal version of this report can be accessed at https://www.dispatchtribunal.com/2018/02/14/humana-hum-stock-rating-lowered-by-zacks-investment-research-2.html.

Humana Company Profile

Humana Inc is a health and well-being company. The Company’s segments include Retail, Group and Specialty, Healthcare Services and Individual Commercial. The Retail segment consists of Medicare benefits, as well as individual commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products.

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