Humana (NYSE:HUM) Shares Gap Down – Should You Sell?

Humana Inc. (NYSE:HUM)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $267.60, but opened at $251.24. Humana shares last traded at $257.17, with a volume of 637,483 shares.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Truist Financial dropped their price objective on shares of Humana from $400.00 to $260.00 and set a “hold” rating for the company in a research note on Friday, October 11th. Stephens reissued an “equal weight” rating and issued a $250.00 price objective on shares of Humana in a research note on Wednesday, October 9th. Sanford C. Bernstein upgraded shares of Humana from a “market perform” rating to an “outperform” rating and set a $308.00 price target for the company in a research report on Tuesday, October 8th. KeyCorp started coverage on shares of Humana in a research report on Friday, October 11th. They issued a “sector weight” rating for the company. Finally, UBS Group decreased their price objective on shares of Humana from $380.00 to $250.00 and set a “neutral” rating for the company in a research report on Friday, October 4th. One analyst has rated the stock with a sell rating, nineteen have given a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat, Humana currently has an average rating of “Hold” and a consensus price target of $315.33.

Humana Stock Performance

The firm has a market capitalization of $30.80 billion, a P/E ratio of 15.91, a price-to-earnings-growth ratio of 1.91 and a beta of 0.50. The company’s 50 day moving average is $319.24 and its 200-day moving average is $339.00. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.70.

Humana (NYSE:HUM) last released its quarterly earnings data on Wednesday, July 31st. The insurance provider reported $6.96 earnings per share for the quarter, beating analysts’ consensus estimates of $5.89 by $1.07. Humana had a net margin of 1.53% and a return on equity of 16.12%. The firm had revenue of $29.54 billion for the quarter, compared to analyst estimates of $28.52 billion. During the same period last year, the firm earned $8.94 earnings per share. The business’s quarterly revenue was up 10.4% compared to the same quarter last year. As a group, equities analysts anticipate that Humana Inc. will post 16.06 EPS for the current year.

Humana Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 25th. Shareholders of record on Monday, September 30th will be paid a $0.885 dividend. This represents a $3.54 dividend on an annualized basis and a dividend yield of 1.39%. The ex-dividend date is Monday, September 30th. Humana’s dividend payout ratio (DPR) is 22.04%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. CarsonAllaria Wealth Management Ltd. lifted its position in shares of Humana by 111.4% during the second quarter. CarsonAllaria Wealth Management Ltd. now owns 74 shares of the insurance provider’s stock valued at $28,000 after purchasing an additional 39 shares in the last quarter. Atwood & Palmer Inc. bought a new position in shares of Humana during the third quarter valued at about $29,000. Hantz Financial Services Inc. bought a new position in shares of Humana during the second quarter valued at about $35,000. Family Firm Inc. bought a new position in shares of Humana during the second quarter valued at about $37,000. Finally, Hollencrest Capital Management bought a new position in shares of Humana during the second quarter valued at about $40,000. 92.38% of the stock is owned by institutional investors.

About Humana

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.