Humana (NYSE:HUM) Shares Gap Up – Still a Buy?

Humana Inc. (NYSE:HUM) shares gapped up prior to trading on Tuesday . The stock had previously closed at $254.71, but opened at $292.12. Humana shares last traded at $286.68, with a volume of 407,294 shares changing hands.

Analysts Set New Price Targets

Several brokerages have commented on HUM. Barclays increased their price target on shares of Humana from $255.00 to $270.00 and gave the company an “equal weight” rating in a research note on Thursday, February 13th. Morgan Stanley reduced their price target on shares of Humana from $301.00 to $285.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 12th. Guggenheim initiated coverage on Humana in a research report on Wednesday. They set a “buy” rating and a $326.00 target price on the stock. Royal Bank of Canada reissued an “outperform” rating and issued a $283.00 target price on shares of Humana in a research report on Wednesday, February 12th. Finally, Cantor Fitzgerald reiterated a “neutral” rating and issued a $290.00 price objective on shares of Humana in a research note on Wednesday, February 12th. Seventeen equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $284.25.

Humana Price Performance

The stock has a market cap of $35.10 billion, a price-to-earnings ratio of 29.23, a PEG ratio of 2.05 and a beta of 0.62. The company’s 50 day moving average is $265.60 and its 200 day moving average is $270.92. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.76 and a quick ratio of 1.76.

Humana (NYSE:HUM) last announced its quarterly earnings results on Tuesday, February 11th. The insurance provider reported ($2.16) EPS for the quarter, topping the consensus estimate of ($2.26) by $0.10. Humana had a return on equity of 11.70% and a net margin of 1.02%. Research analysts forecast that Humana Inc. will post 16.47 earnings per share for the current fiscal year.

Humana Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Investors of record on Friday, March 28th will be paid a $0.885 dividend. The ex-dividend date of this dividend is Friday, March 28th. This represents a $3.54 dividend on an annualized basis and a yield of 1.22%. Humana’s payout ratio is 35.58%.

Institutional Trading of Humana

Institutional investors and hedge funds have recently modified their holdings of the business. Pinnacle Wealth Management Advisory Group LLC grew its holdings in Humana by 3.6% during the 4th quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,070 shares of the insurance provider’s stock valued at $272,000 after buying an additional 37 shares during the last quarter. Atlas Brown Inc. lifted its holdings in Humana by 0.6% in the 4th quarter. Atlas Brown Inc. now owns 6,352 shares of the insurance provider’s stock valued at $1,611,000 after purchasing an additional 38 shares in the last quarter. Mather Group LLC. grew its holdings in shares of Humana by 21.0% during the fourth quarter. Mather Group LLC. now owns 236 shares of the insurance provider’s stock worth $60,000 after buying an additional 41 shares in the last quarter. Capital Advisors Ltd. LLC raised its position in shares of Humana by 26.1% in the fourth quarter. Capital Advisors Ltd. LLC now owns 208 shares of the insurance provider’s stock valued at $53,000 after buying an additional 43 shares during the last quarter. Finally, Retirement Planning Co of New England Inc. boosted its position in Humana by 4.7% during the fourth quarter. Retirement Planning Co of New England Inc. now owns 966 shares of the insurance provider’s stock worth $245,000 after acquiring an additional 43 shares during the last quarter. Hedge funds and other institutional investors own 92.38% of the company’s stock.

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.