The Investors Buy Humana Inc. (HUM) on Weakness Following Analyst Downgrade

The Investors Buy Humana Inc. (HUM) on Weakness Following Analyst Downgrade

Traders purchased shares of Humana Inc. (NYSE:HUM) on weakness during trading hours on Thursday after Royal Bank Of Canada lowered their price target on the stock from $222.00 to $217.00. $297.61 million flowed into the stock on the tick-up and $272.80 million flowed out of the stock on the tick-down, for a money net flow of $24.81 million into the stock. Of all companies tracked, Humana had the 15th highest net in-flow for the day. Humana traded down ($9.09) for the day and closed at $168.44

HUM has been the topic of several other research reports. Zacks Investment Research lowered Humana from a “buy” rating to a “hold” rating in a research note on Wednesday, September 21st. JPMorgan Chase & Co. lowered Humana from an “overweight” rating to a “neutral” rating and dropped their price objective for the company from $196.00 to $150.00 in a research note on Friday, July 8th. Evercore ISI initiated coverage on Humana in a research note on Thursday, September 22nd. They issued a “buy” rating and a $200.00 price objective on the stock. Argus restated a “hold” rating on shares of Humana in a research note on Tuesday, August 23rd. Finally, Wolfe Research upgraded Humana to an “outperform” rating and set a $192.00 price objective on the stock in a research note on Thursday, July 21st. Seven investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $200.50.

Several large investors have recently added to or reduced their stakes in HUM. Daiwa SB Investments Ltd. increased its stake in Humana by 1.4% in the third quarter. Daiwa SB Investments Ltd. now owns 730 shares of the insurance provider’s stock valued at $129,000 after buying an additional 10 shares during the period. Northwestern Mutual Investment Management Company LLC increased its stake in Humana by 0.4% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 5,684 shares of the insurance provider’s stock valued at $1,022,000 after buying an additional 22 shares during the period. Fifth Third Bancorp increased its stake in Humana by 0.5% in the second quarter. Fifth Third Bancorp now owns 4,547 shares of the insurance provider’s stock valued at $818,000 after buying an additional 23 shares during the period. Savant Capital LLC increased its stake in Humana by 1.3% in the second quarter. Savant Capital LLC now owns 2,380 shares of the insurance provider’s stock valued at $428,000 after buying an additional 30 shares during the period. Finally, Cleararc Capital Inc. increased its stake in Humana by 0.9% in the second quarter. Cleararc Capital Inc. now owns 3,630 shares of the insurance provider’s stock valued at $653,000 after buying an additional 31 shares during the period. 93.24% of the stock is currently owned by institutional investors.

The stock has a market cap of $25.26 billion, a P/E ratio of 26.04 and a beta of 0.90. The firm’s 50 day moving average is $176.12 and its 200-day moving average is $175.83.

Humana (NYSE:HUM) last posted its quarterly earnings results on Wednesday, August 3rd. The insurance provider reported $2.30 EPS for the quarter, topping analysts’ consensus estimates of $2.23 by $0.07. The company had revenue of $14 billion for the quarter, compared to analysts’ expectations of $13.59 billion. Humana had a net margin of 1.76% and a return on equity of 11.11%. Humana’s revenue was up 2.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.67 EPS. On average, analysts forecast that Humana Inc. will post $9.24 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 28th. Shareholders of record on Thursday, October 13th will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Tuesday, October 11th. This represents a $1.16 dividend on an annualized basis and a yield of 0.68%. Humana’s payout ratio is 18.18%.

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