Humana (NYSE:HUM) Shares Gap Up - Here's Why

Humana Inc. (NYSE:HUM - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $254.71, but opened at $292.12. Humana shares last traded at $286.68, with a volume of 407,294 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on HUM shares. JPMorgan Chase & Co. dropped their price objective on Humana from $257.00 to $256.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 18th. Cantor Fitzgerald reissued a "neutral" rating and set a $290.00 price target on shares of Humana in a research report on Wednesday, February 12th. Royal Bank of Canada reiterated an "outperform" rating and issued a $283.00 price objective on shares of Humana in a research note on Wednesday, February 12th. Guggenheim initiated coverage on Humana in a research note on Wednesday. They issued a "buy" rating and a $326.00 target price on the stock. Finally, Mizuho increased their price target on Humana from $305.00 to $316.00 and gave the company an "outperform" rating in a research report on Wednesday. Seventeen investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $288.60.

Humana Price Performance

The firm has a market cap of $35.60 billion, a P/E ratio of 29.65, a PEG ratio of 2.05 and a beta of 0.62. The business's fifty day simple moving average is $265.55 and its 200-day simple moving average is $270.65. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.68.

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Humana (NYSE:HUM - Get Free Report) last released its quarterly earnings data on Tuesday, February 11th. The insurance provider reported ($2.16) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($2.26) by $0.10. Humana had a return on equity of 11.70% and a net margin of 1.02%. As a group, analysts forecast that Humana Inc. will post 16.47 EPS for the current fiscal year.

Humana Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, April 25th. Stockholders of record on Friday, March 28th will be issued a $0.885 dividend. This represents a $3.54 dividend on an annualized basis and a dividend yield of 1.20%. The ex-dividend date is Friday, March 28th. Humana's payout ratio is 35.58%.

Hedge Funds Weigh In On Humana

Several hedge funds have recently bought and sold shares of the company. Gateway Investment Advisers LLC boosted its holdings in Humana by 53.4% in the 1st quarter. Gateway Investment Advisers LLC now owns 3,629 shares of the insurance provider's stock valued at $960,000 after purchasing an additional 1,263 shares during the period. Riverview Trust Co purchased a new stake in shares of Humana in the first quarter worth $34,000. Secure Asset Management LLC boosted its stake in Humana by 9.4% during the first quarter. Secure Asset Management LLC now owns 1,052 shares of the insurance provider's stock valued at $278,000 after buying an additional 90 shares during the period. Whipplewood Advisors LLC grew its position in Humana by 639.1% during the first quarter. Whipplewood Advisors LLC now owns 170 shares of the insurance provider's stock worth $45,000 after buying an additional 147 shares in the last quarter. Finally, Merit Financial Group LLC grew its position in Humana by 343.0% during the first quarter. Merit Financial Group LLC now owns 8,058 shares of the insurance provider's stock worth $2,132,000 after buying an additional 6,239 shares in the last quarter. Hedge funds and other institutional investors own 92.38% of the company's stock.

Humana Company Profile

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.