The Analyst Landscape: 21 Takes On Humana

Providing a diverse range of perspectives from bullish to bearish, 21 analysts have published ratings on Humana (NYSE:HUM) in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated Humana and provided 12-month price targets. The average target is $428.95, accompanied by a high estimate of $630.00 and a low estimate of $310.00. A decline of 15.62% from the prior average price target is evident in the current average.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Humana among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Humana. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Humana compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Humana's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Humana's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Humana analyst ratings.

Delving into Humana's Background

Humana is one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.

A Deep Dive into Humana's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Humana showcased positive performance, achieving a revenue growth rate of 17.93% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Humana's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Humana's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -3.26% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Humana's ROA excels beyond industry benchmarks, reaching -1.05%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 0.74, Humana faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.