Humana (HUM) Downgraded by Zacks Investment Research to “Hold”

Humana (NYSE:HUM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.

According to Zacks, “Humana’s shares have outperformed its industry’s growth in a year’s time. Moreover, it has witnessed its 2018 and 2019 earnings estimates move upward over the past 30 days. The insurer is well-poised for growth on the back of 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. Acquisitions and dispositions made by the company have also led to business growth over the last few quarters. However, its rising level of expenses since 2010 persistently weighs on the bottom line. The company expects to witness rise in benefit expenses which will lead to an overall increase in operating expenses going forward.”

A number of other research analysts also recently weighed in on HUM. Piper Jaffray Companies increased their price objective on shares of Humana from $355.00 to $380.00 and gave the company an “overweight” rating in a research report on Friday, August 24th. Argus increased their price target on shares of Humana to $375.00 and gave the stock a “buy” rating in a research report on Tuesday, September 4th. Credit Suisse Group increased their price target on shares of Humana from $350.00 to $370.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 4th. Barclays assumed coverage on shares of Humana in a research report on Thursday, September 13th. They issued an “overweight” rating and a $370.00 price target on the stock. Finally, Cowen assumed coverage on shares of Humana in a research report on Monday, September 17th. They issued a “market perform” rating and a $372.00 price target on the stock. Eight research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $352.10.

Humana stock traded up $5.83 during midday trading on Thursday, reaching $316.35. 145,891 shares of the company traded hands, compared to its average volume of 1,150,953. The company has a market cap of $41.99 billion, a price-to-earnings ratio of 27.02, a price-to-earnings-growth ratio of 1.45 and a beta of 0.99. Humana has a 12 month low of $242.00 and a 12 month high of $355.88. The company has a quick ratio of 1.68, a current ratio of 1.68 and a debt-to-equity ratio of 0.45.

Humana (NYSE:HUM) last issued its quarterly earnings data on Wednesday, November 7th. The insurance provider reported $4.58 earnings per share for the quarter, beating the Zacks’ consensus estimate of $4.29 by $0.29. The company had revenue of $14.21 billion for the quarter, compared to the consensus estimate of $13.97 billion. Humana had a net margin of 2.70% and a return on equity of 19.10%. During the same quarter in the prior year, the firm earned $3.39 earnings per share. Sell-side analysts expect that Humana will post 14.43 EPS for the current fiscal year.

In other news, insider Roy A. Beveridge sold 4,622 shares of the firm’s stock in a transaction on Thursday, November 8th. The shares were sold at an average price of $341.06, for a total transaction of $1,576,379.32. Following the sale, the insider now directly owns 10,621 shares in the company, valued at approximately $3,622,398.26. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.60% of the stock is owned by company insiders.

Several hedge funds have recently made changes to their positions in HUM. Capital International Investors raised its position in shares of Humana by 3,030.3% during the 3rd quarter. Capital International Investors now owns 8,217,296 shares of the insurance provider’s stock valued at $2,781,719,000 after purchasing an additional 7,954,786 shares during the period. FMR LLC lifted its holdings in shares of Humana by 12.7% in the 2nd quarter. FMR LLC now owns 12,212,514 shares of the insurance provider’s stock worth $3,634,811,000 after acquiring an additional 1,374,030 shares during the last quarter. Renaissance Technologies LLC lifted its holdings in shares of Humana by 14.1% in the 3rd quarter. Renaissance Technologies LLC now owns 3,174,800 shares of the insurance provider’s stock worth $1,074,733,000 after acquiring an additional 391,300 shares during the last quarter. Glenmede Trust Co. NA lifted its holdings in shares of Humana by 153.7% in the 2nd quarter. Glenmede Trust Co. NA now owns 500,266 shares of the insurance provider’s stock worth $148,895,000 after acquiring an additional 303,080 shares during the last quarter. Finally, Ffcm LLC lifted its holdings in Humana by 5,891.4% during the 3rd quarter. Ffcm LLC now owns 288,544 shares of the insurance provider’s stock valued at $14,968,000 after buying an additional 283,728 shares in the last quarter. Hedge funds and other institutional investors own 92.71% of the company’s stock.

Humana Company Profile

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.

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