Humana (NYSE:HUM) Shares Gap Up - Still a Buy?

Shares of Humana Inc. (NYSE:HUM - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $269.04, but opened at $281.85. Humana shares last traded at $282.67, with a volume of 312,372 shares changing hands.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. KeyCorp assumed coverage on Humana in a research report on Friday, October 11th. They set a "sector weight" rating for the company. Barclays boosted their price objective on shares of Humana from $250.00 to $253.00 and gave the company an "equal weight" rating in a research note on Thursday, October 31st. Bank of America upgraded shares of Humana from an "underperform" rating to a "neutral" rating and upped their price objective for the stock from $247.00 to $308.00 in a research report on Wednesday, November 6th. Stephens reiterated an "equal weight" rating and set a $250.00 price target on shares of Humana in a research note on Wednesday, October 9th. Finally, Leerink Partnrs cut shares of Humana from a "strong-buy" rating to a "hold" rating in a report on Wednesday, October 2nd. Twenty equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to MarketBeat, Humana presently has an average rating of "Hold" and a consensus target price of $302.00.

Humana Stock Performance

The stock has a 50-day moving average price of $273.25 and a 200 day moving average price of $310.27. The firm has a market cap of $34.62 billion, a PE ratio of 25.46, a P/E/G ratio of 2.12 and a beta of 0.55. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.76 and a quick ratio of 1.76.

Humana (NYSE:HUM - Get Free Report) last announced its quarterly earnings data on Wednesday, October 30th. The insurance provider reported $4.16 earnings per share for the quarter, topping the consensus estimate of $3.48 by $0.68. Humana had a net margin of 1.18% and a return on equity of 13.20%. The business had revenue of $29.30 billion for the quarter, compared to analyst estimates of $28.66 billion. Research analysts forecast that Humana Inc. will post 16.14 earnings per share for the current year.

Humana Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 31st. Shareholders of record on Tuesday, December 31st will be given a dividend of $0.885 per share. This represents a $3.54 dividend on an annualized basis and a yield of 1.23%. The ex-dividend date of this dividend is Tuesday, December 31st. Humana's dividend payout ratio (DPR) is presently 31.36%.

Insider Transactions at Humana

In other Humana news, insider Timothy S. Huval sold 3,703 shares of the business's stock in a transaction dated Tuesday, December 31st. The stock was sold at an average price of $256.26, for a total transaction of $948,930.78. Following the transaction, the insider now owns 8,181 shares in the company, valued at $2,096,463.06. The trade was a 31.16 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.32% of the company's stock.

Hedge Funds Weigh In On Humana

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Creative Financial Designs Inc. ADV raised its stake in shares of Humana by 244.0% during the third quarter. Creative Financial Designs Inc. ADV now owns 86 shares of the insurance provider's stock valued at $27,000 after purchasing an additional 61 shares during the period. Atwood & Palmer Inc. purchased a new stake in Humana during the 3rd quarter worth $29,000. Ashton Thomas Securities LLC acquired a new position in Humana in the 3rd quarter worth $31,000. Your Advocates Ltd. LLP boosted its position in Humana by 81.8% in the 3rd quarter. Your Advocates Ltd. LLP now owns 100 shares of the insurance provider's stock valued at $32,000 after buying an additional 45 shares during the last quarter. Finally, Hollencrest Capital Management acquired a new stake in shares of Humana during the second quarter valued at about $40,000. Hedge funds and other institutional investors own 92.38% of the company's stock.

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.