Humana (NYSE:HUM) Hits New 52-Week High – Should You Buy?

Humana Inc. (NYSE:HUM)’s stock price reached a new 52-week high during trading on Friday. The stock traded as high as $456.50 and last traded at $439.3370, with a volume of 941075 shares traded. The stock had previously closed at $387.12.

Humana News Summary

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Major improvement in plan quality ratings: Humana said 95% of its Medicare Advantage members are enrolled in plans rated four stars or higher for 2027, including 42% in 4.5-star plans. Six contracts received 4.5 stars and 12 received four stars. The improvement positions Humana as one of the biggest beneficiaries of the ratings cycle and could increase eligibility for quality-related bonus payments. Humana Announces Improved CMS Star Ratings
• Positive Sentiment: Potential earnings and revenue tailwind: Higher ratings may support bonus revenue and improve the competitiveness of Humana’s Medicare Advantage offerings. Reports also said the company raised its outlook for 2028 Stars-related revenue, reinforcing expectations for a Medicare Advantage recovery. Humana boosts 2028 Stars revenue outlook
• Positive Sentiment: Analyst sentiment improved: Baird and Barclays issued bullish commentary on Humana’s Medicare Advantage recovery, while Cantor Fitzgerald raised its rating to Overweight. The ratings announcement has also led to comparisons showing Humana outperforming some rivals, including CVS and Alignment Healthcare. Humana Gets Bullish Calls From Baird and Barclays
• Neutral Sentiment: 2026 outlook reaffirmed: Humana maintained its full-year adjusted earnings guidance, reducing the risk of an immediate outlook reset while leaving the improved Star Ratings as the primary new catalyst for investors. Humana Reaffirms Full-Year 2026 Adjusted Earnings Outlook

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on HUM shares. Zacks Research cut shares of Humana from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Robert W. Baird set a $596.00 target price on Humana and gave the stock an “outperform” rating in a research note on Friday. Raymond James Financial set a $460.00 target price on shares of Humana in a report on Wednesday. Royal Bank Of Canada lifted their price objective on shares of Humana from $246.00 to $415.00 and gave the company a “sector perform” rating in a research note on Thursday, July 9th. Finally, Bank of America raised shares of Humana from a “neutral” rating to a “buy” rating and set a $500.00 price objective for the company in a research report on Wednesday, July 29th. Seventeen investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $445.74.

Humana Trading Up 11.7%

The firm’s 50 day moving average is $387.26 and its two-hundred day moving average is $332.87. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.62. The stock has a market cap of $51.94 billion, a price-to-earnings ratio of 40.93, a price-to-earnings-growth ratio of 2.45 and a beta of 0.74.

Humana (NYSE:HUM) last announced its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share for the quarter, beating the consensus estimate of $7.27 by $0.34. Humana had a return on equity of 11.20% and a net margin of 0.88%.The firm had revenue of $40.89 billion during the quarter, compared to analysts’ expectations of $40.58 billion. During the same period in the previous year, the firm earned $6.27 EPS. The company’s quarterly revenue was up 26.2% compared to the same quarter last year. Equities analysts anticipate that Humana Inc. will post 9.01 EPS for the current year.

Humana Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, October 30th will be issued a $0.8850 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $3.54 dividend on an annualized basis and a yield of 0.8%. Humana’s payout ratio is currently 33.49%.

Hedge Funds Weigh In On Humana

Hedge funds have recently made changes to their positions in the stock. Manning & Napier Advisors LLC acquired a new position in shares of Humana during the 2nd quarter worth about $1,412,000. The Manufacturers Life Insurance Company lifted its holdings in Humana by 10.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 70,185 shares of the insurance provider’s stock worth $27,879,000 after buying an additional 6,690 shares during the last quarter. Sustainable Insight Capital Management LLC lifted its stake in shares of Humana by 23.7% during the 4th quarter. Sustainable Insight Capital Management LLC now owns 24,757 shares of the insurance provider’s stock valued at $6,341,000 after buying an additional 4,740 shares in the last quarter. Vista Investment Partners LLC purchased a new stake in shares of Humana in the 3rd quarter valued at $3,254,000. Finally, Pzena Investment Management LLC acquired a new position in shares of Humana during the 2nd quarter worth $1,749,014,000. Hedge funds and other institutional investors own 92.38% of the company’s stock.

About Humana

Humana Inc is a health and well-being company headquartered in Louisville, Kentucky. Founded in 1961, the company began as a nursing home operator before expanding into hospitals and health insurance. Today, Humana primarily provides health insurance products and healthcare services for older adults, individuals, military families and other members in the United States.

Humana’s insurance business offers Medicare Advantage, Medicare Supplement and prescription drug plans, as well as Medicaid coverage in select markets.