Humana Inc. (NYSE:HUM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday.
According to Zacks, “Humana suffers severely from stiff competition, regulatory uncertainty and weakness in individual commercial business that has been bothering since long. Nevertheless, the shares gained 36.5%, against the industry’s increase of 36%, in last one year. The company grows on consistent revenue generation which also drives solid margin growth. For full-year 2017, it expects non-GAAP adjusted earnings per diluted common share guidance of at least $11.10. The strong revenue base is primarily attributable to accretive acquisitions. The company’s Medicare business has not only been excelling but also holds better long term prospects. Humana’s sound balance sheet led to frequent capital deployment. In addition, Humana’s several business diversification initiatives also paves way for long-term growth. The company is slated to report its second quarter results on Aug 2, before the market opens.”
Several other research firms have also commented on HUM. Credit Suisse Group reiterated an “outperform” rating and set a $250.00 price objective (up previously from $245.00) on shares of Humana in a research report on Thursday, July 13th. Cowen and Company reiterated a “buy” rating and set a $230.00 price objective on shares of Humana in a research report on Friday, July 14th. Piper Jaffray Companies reiterated a “buy” rating and set a $246.00 price objective on shares of Humana in a research report on Friday, July 14th. Bank of America Corporation increased their price objective on shares of Humana from $270.00 to $275.00 and gave the company a “buy” rating in a research report on Friday, July 14th. Finally, Citigroup Inc. assumed coverage on shares of Humana in a research report on Wednesday, June 28th. They set a “buy” rating and a $275.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and twelve have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $236.00.
Shares of Humana (HUM) opened at 233.50 on Thursday. Humana has a 12 month low of $163.50 and a 12 month high of $243.74. The company has a market cap of $33.70 billion, a PE ratio of 23.80 and a beta of 0.91. The firm’s 50-day moving average is $236.02 and its 200-day moving average is $219.72.
Humana (NYSE:HUM) last released its quarterly earnings data on Wednesday, May 3rd. The insurance provider reported $2.75 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.55 by $0.20. Humana had a net margin of 2.71% and a return on equity of 14.38%. The business had revenue of $13.76 billion during the quarter, compared to analyst estimates of $13.61 billion. During the same quarter last year, the business earned $1.86 earnings per share. On average, equities research analysts predict that Humana will post $11.15 earnings per share for the current year.
In other Humana news, CEO Bruce D. Broussard sold 118,231 shares of the firm’s stock in a transaction dated Thursday, May 4th. The shares were sold at an average price of $225.82, for a total transaction of $26,698,924.42. Following the transaction, the chief executive officer now owns 171,170 shares of the company’s stock, valued at approximately $38,653,609.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Brian P. Leclaire sold 4,971 shares of the firm’s stock in a transaction dated Wednesday, June 28th. The shares were sold at an average price of $240.00, for a total transaction of $1,193,040.00. Following the transaction, the senior vice president now directly owns 14,258 shares in the company, valued at approximately $3,421,920. The disclosure for this sale can be found here. Insiders sold a total of 143,241 shares of company stock worth $32,446,903 in the last ninety days. 0.80% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Reliance Trust Co. of Delaware increased its position in Humana by 0.7% in the second quarter. Reliance Trust Co. of Delaware now owns 1,123 shares of the insurance provider’s stock worth $270,000 after buying an additional 8 shares during the period. Wealth Enhancement Advisory Services LLC acquired a new position in Humana during the second quarter worth approximately $772,000. Shell Asset Management Co. increased its position in Humana by 2.2% in the second quarter. Shell Asset Management Co. now owns 12,809 shares of the insurance provider’s stock worth $3,082,000 after buying an additional 270 shares during the period. Parkwood LLC increased its position in Humana by 817.1% in the second quarter. Parkwood LLC now owns 12,867 shares of the insurance provider’s stock worth $3,096,000 after buying an additional 11,464 shares during the period. Finally, Wellington Shields Capital Management LLC acquired a new position in Humana during the second quarter worth approximately $577,000. 99.08% of the stock is currently owned by institutional investors and hedge funds.
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.
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