Beyond The Numbers: 7 Analysts Discuss Humana Stock

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Humana 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.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $588.29, a high estimate of $630.00, and a low estimate of $550.00. This current average reflects an increase of 0.16% from the previous average price target of $587.33.

Interpreting Analyst Ratings: A Closer Look

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: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Humana. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Humana compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Humana's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Humana's market position. Stay informed and make data-driven decisions with the assistance of 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.

Financial Milestones: Humana's Journey

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Humana showcased positive performance, achieving a revenue growth rate of 15.9% as of 30 September, 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 3.15%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Humana's ROE excels beyond industry benchmarks, reaching 4.93%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Humana's ROA excels beyond industry benchmarks, reaching 1.48%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 0.71, Humana faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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