Humana (NYSE:HUM) Upgraded at Cantor Fitzgerald

Cantor Fitzgerald upgraded shares of Humana (NYSE:HUM) from a neutral rating to an overweight rating in a research note released on Wednesday morning, Marketbeat Ratings reports. Cantor Fitzgerald currently has $460.00 price objective on the insurance provider’s stock, up from their prior price objective of $300.00.

Several other equities analysts have also recently commented on HUM. UBS Group initiated coverage on Humana in a research note on Thursday, July 30th. They set a “buy” rating for the company. Lake Street Capital started coverage on shares of Humana in a research note on Thursday, July 30th. They issued a “buy” rating for the company. Barclays raised shares of Humana from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $407.00 to $515.00 in a report on Friday, September 25th. Zacks Research downgraded shares of Humana from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 11th. Finally, Morgan Stanley raised shares of Humana from an “underweight” rating to an “equal weight” rating and raised their price objective for the stock from $249.00 to $370.00 in a report on Tuesday, August 4th. Twenty investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $445.74.

Humana Stock Up 11.3%

Shares of Humana stock opened at $430.84 on Wednesday. The business has a 50-day moving average of $388.59 and a 200-day moving average of $333.55. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74. The company has a market capitalization of $51.74 billion, a PE ratio of 40.76, a P/E/G ratio of 2.39 and a beta of 0.74. Humana has a 1-year low of $163.11 and a 1-year high of $456.50.

Humana (NYSE:HUM) last released its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $7.61 EPS for the quarter, topping 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 business had revenue of $40.89 billion for the quarter, compared to analysts’ expectations of $40.58 billion. During the same quarter in the previous year, the firm posted $6.27 earnings per share. The company’s revenue was up 26.2% compared to the same quarter last year. As a group, equities analysts forecast that Humana will post 9.02 EPS for the current fiscal 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. This represents a $3.54 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Friday, October 30th. Humana’s payout ratio is currently 33.49%.

Institutional Trading of Humana

A number of institutional investors and hedge funds have recently modified their holdings of HUM. Johnson Financial Group Inc. bought a new stake in Humana in the 2nd quarter valued at about $26,000. Trust Co. of Vermont bought a new position in Humana in the 2nd quarter worth about $28,000. Bogart Wealth LLC grew its position in Humana by 192.0% in the 2nd quarter. Bogart Wealth LLC now owns 73 shares of the insurance provider’s stock worth $29,000 after purchasing an additional 48 shares during the last quarter. MidFirst Bank acquired a new stake in shares of Humana in the second quarter valued at approximately $35,000. Finally, Highland Investment Advisors LLC acquired a new stake in shares of Humana in the second quarter valued at approximately $43,000. 92.38% of the stock is owned by institutional investors and hedge funds.

Key Humana News

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Improved Medicare Advantage ratings: Humana reported that approximately 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, making Humana one of the clearest beneficiaries of the CMS release. Humana Announces Improved CMS Star Ratings
• Positive Sentiment: Potential earnings benefit: The higher ratings could improve Humana’s access to quality bonus payments and support enrollment during the annual Medicare Advantage enrollment period. Analysts described the company as the largest beneficiary of the 2027 ratings and Baird upgraded the stock to Buy. Reuters Medicare Star Ratings Report
• Positive Sentiment: Guidance maintained: Humana reaffirmed its full-year 2026 adjusted earnings outlook and raised its outlook for 2028 Stars-related revenue, reducing concerns that the ratings recovery would not translate into financial improvement. Humana Reaffirms 2026 Earnings Outlook
• Neutral Sentiment: Valuation and competition remain considerations: The rally has pushed HUM close to its 52-week high, while one comparison said UnitedHealth offers a more diversified business, better Medicare Advantage profitability and a lower valuation. Investors may therefore focus on whether the ratings improvement produces sustainable margin expansion.
• Negative Sentiment: Member benefit reductions: Humana reportedly plans to cut or eliminate Part B premium givebacks for 62% of affected members in 2027. That could disappoint some enrollees and create competitive or retention risks, even though the overall CMS ratings news was favorable. Humana Part B Giveback Report

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.