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

Humana Inc. (NYSE:HUM)’s share price gapped up before the market opened on Monday . The stock had previously closed at $237.96, but opened at $245.00. Humana shares last traded at $241.63, with a volume of 306,526 shares changing hands.

Analyst Ratings Changes

A number of research firms recently commented on HUM. Guggenheim started coverage on shares of Humana in a research note on Wednesday, April 9th. They set a “buy” rating and a $326.00 price objective on the stock. Cantor Fitzgerald reiterated a “neutral” rating and issued a $290.00 price target on shares of Humana in a research note on Thursday, May 1st. Raymond James raised shares of Humana from a “market perform” rating to an “outperform” rating and set a $315.00 price objective on the stock in a research note on Thursday, May 1st. Royal Bank of Canada reiterated an “outperform” rating and issued a $283.00 target price on shares of Humana in a report on Wednesday, February 12th. Finally, JPMorgan Chase & Co. cut their target price on Humana from $257.00 to $256.00 and set a “neutral” rating for the company in a research note on Tuesday, February 18th. Seventeen equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $286.81.

Humana Stock Up 3.2%

The company has a debt-to-equity ratio of 0.68, a current ratio of 1.76 and a quick ratio of 1.76. The stock has a market capitalization of $30.80 billion, a P/E ratio of 25.65, a PEG ratio of 2.05 and a beta of 0.49. The stock has a 50 day moving average price of $262.98 and a 200-day moving average price of $269.38.

Humana (NYSE:HUM) last announced its earnings results on Wednesday, April 30th. The insurance provider reported $11.58 EPS for the quarter, beating analysts’ consensus estimates of $10.07 by $1.51. Humana had a net margin of 1.02% and a return on equity of 11.70%. The business had revenue of $32.11 billion during the quarter, compared to analysts’ expectations of $32 billion. During the same period in the prior year, the company earned $7.23 earnings per share. The firm’s revenue was up 8.4% on a year-over-year basis. As a group, research analysts expect that Humana Inc. will post 16.47 EPS for the current fiscal year.

Humana Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 25th. Investors of record on Friday, June 27th will be issued a $0.885 dividend. The ex-dividend date is Friday, June 27th. This represents a $3.54 annualized dividend and a yield of 1.39%. Humana’s dividend payout ratio (DPR) is presently 25.04%.

Institutional Trading of Humana

Large investors have recently bought and sold shares of the business. FPC Investment Advisory Inc. purchased a new stake in shares of Humana during the fourth quarter worth approximately $27,000. Centricity Wealth Management LLC purchased a new position in Humana in the fourth quarter valued at approximately $30,000. Cary Street Partners Investment Advisory LLC grew its position in shares of Humana by 63.9% during the first quarter. Cary Street Partners Investment Advisory LLC now owns 118 shares of the insurance provider’s stock worth $31,000 after buying an additional 46 shares in the last quarter. LFA Lugano Financial Advisors SA grew its holdings in shares of Humana by 56.3% during the fourth quarter. LFA Lugano Financial Advisors SA now owns 125 shares of the insurance provider’s stock valued at $32,000 after purchasing an additional 45 shares during the last quarter. Finally, OFI Invest Asset Management bought a new position in Humana in the 4th quarter valued at about $33,000. 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.