Evaluating Humana: Insights From 15 Financial Analysts

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Humana HUM underwent analysis by 15 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 3 9 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 2 0 0
2M Ago 1 2 2 0 0
3M Ago 2 1 4 0 0

Analysts have recently evaluated Humana and provided 12-month price targets. The average target is $364.33, accompanied by a high estimate of $396.00 and a low estimate of $310.00. Experiencing a 8.61% decline, the current average is now lower than the previous average price target of $398.67.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Humana. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Sarah James Cantor Fitzgerald Maintains Neutral $360.00 $360.00
Michael Ha Baird Announces Neutral $374.00 -
Kevin Fischbeck B of A Securities Raises Neutral $376.00 $342.00
Frank Morgan RBC Capital Lowers Outperform $353.00 $415.00
Kevin Caliendo UBS Lowers Neutral $326.00 $334.00
Sarah James Cantor Fitzgerald Lowers Neutral $360.00 $391.00
Michael Wiederhorn Oppenheimer Lowers Outperform $370.00 $415.00
David Windley Jefferies Lowers Buy $381.00 $411.00
Sarah James Cantor Fitzgerald Maintains Neutral $391.00 -
Stephen Baxter Wells Fargo Lowers Overweight $350.00 $413.00
Sarah James Cantor Fitzgerald Maintains Neutral $391.00 -
Nathan Rich Goldman Sachs Lowers Buy $385.00 $450.00
Andrew Mok Barclays Lowers Equal-Weight $310.00 $356.00
Gary Taylor TD Cowen Lowers Buy $396.00 $427.00
Kevin Fischbeck B of A Securities Lowers Neutral $342.00 $470.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Humana. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Humana compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Humana's stock. This analysis 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.

Unveiling the Story Behind Humana

Humana is one of the largest private health insurers in the us 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: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Humana displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 10.73%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Humana's net margin is impressive, surpassing industry averages. With a net margin of 2.5%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Humana's ROE stands out, surpassing industry averages. With an impressive ROE of 4.58%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.53%, the company showcases effective utilization of assets.

Debt Management: With a high debt-to-equity ratio of 0.82, Humana faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

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.

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