Humana raises outlook after second quarter net profit beat expectations

Xavier Trudeau
Août 3, 2017

Humana had a net margin of 2.71% and a return on equity of 14.38%. The stock rose 4.58% or $10.58 reaching $241.35 per share.

Excluding non-recurring items, adjusted earnings per share came to US$3.49, above the market consensus of US$3.08. In total, Humana's membership dipped slightly year over year to 14 million. During the same period in the previous year, the firm posted $2.30 earnings per share.

A number of equities research analysts have weighed in on HUM shares. Leerink Swann increased their target price on Humana from $250.00 to $265.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 30th. Finally, Zacks Investment Research lowered Humana from a "buy" rating to a "hold" rating in a report on Tuesday, July 18th. Cowen and Company reiterated a "buy" rating and set a $230.00 price objective on shares of Humana in a research note on Friday, July 14th. Stifel Nicolaus downgraded the shares of HUM in report on Tuesday, January 24 to "Hold" rating. Piper Jaffray Companies reiterated a "buy" rating and issued a $246.00 target price on shares of Humana in a report on Friday, July 14th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have issued a buy rating to the company's stock. They now have a Dollars 236 price target on the stock. The insider BROUSSARD BRUCE D sold 104,256 shares worth $21.40 million.

Total shares held by institutions as of the most recent company filings are 139,989,868 with a reported 20,849,429 bought and 12,699,400 sold. The company's stock had a trading volume of 1,126,881 shares. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

In other news, VP Timothy S. Huval sold 13,939 shares of the stock in a transaction on Thursday, May 4th. The stock was sold at an average price of $225.86, for a total transaction of $3,148,262.54.

The biggest institutional shareholders in Humana Inc. include Capital World Investors which owns 15 million shares in the company valued at $3.01 B million. The disclosure for this sale can be found here. Following the completion of the transaction, the chief executive officer now owns 171,170 shares of the company's stock, valued at approximately $38,653,609.40. Insiders own 0.80% of the company's stock.

Other hedge funds have also recently made changes to their positions in the company.

Louisville-based Humana Inc. reported higher than expected earnings in the April-June quarter and said it will be in a better position to earn extra payments from the federal government in 2018 for its bread-and-butter Medicare Advantage business. Chevy Chase Trust Holdings Inc. boosted its position in shares of Humana by 3.3% in the first quarter. AQR Capital Management LLC now owns 736,019 shares of the insurance provider's stock valued at $151,723,000 after buying an additional 592,772 shares in the last quarter. Euclidean Technology Management Llc has invested 2.04% in Humana Inc (NYSE:HUM). Capstone Asset Management Co. now owns 16,805 shares of the insurance provider's stock valued at $3,464,000 after buying an additional 334 shares during the period. Granite Investment Advisors LLC now owns 2,410 shares of the insurance provider's stock worth $497,000 after buying an additional 260 shares during the period.

Humana Inc. (NYSE:HUM) announced its quarterly earnings data on Wednesday. State Street Corp increased its stake in shares of Humana by 1.4% in the first quarter. The stock has a market capitalization of $33.30 billion, a P/E ratio of 23.52 and a beta of 0.91. $222.63's average target is -3.53% below currents $230.77 stock price.

ILLEGAL ACTIVITY NOTICE: This piece was originally reported by BNB Daily and is owned by of BNB Daily. If you are viewing this story on another website, it was illegally copied and republished in violation of United States & global trademark & copyright law. Humana pointed to the temporary suspension of the ACA's health insurance industry fee in 2017 as reason for the decline. The company attributed the year-over-year decrease to lower individual commercial segment revenues. The Retail segment consists of Medicare benefits, as well as individual commercial fully insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products.

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