Humana (NYSE:HUM) Upgraded to Strong-Buy at Robert W. Baird

Humana (NYSE:HUM) was upgraded by investment analysts at Robert W. Baird from a “hold” rating to a “strong-buy” rating in a report issued on Friday, Zacks reports.

Several other research firms also recently issued reports on HUM. Deutsche Bank Aktiengesellschaft started coverage on shares of Humana in a research note on Thursday, July 30th. They issued a “hold” rating for the company. Morgan Stanley upgraded Humana from an “underweight” rating to an “overweight” rating in a research report on Friday. JPMorgan Chase & Co. upped their target price on Humana from $316.00 to $393.00 and gave the company a “neutral” rating in a research report on Monday, August 10th. Weiss Ratings upgraded Humana from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, August 14th. Finally, Lake Street Capital assumed coverage on Humana in a research report on Thursday, July 30th. They set a “buy” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $445.74.

Humana Stock Up 11.3%

HUM stock opened at $430.84 on Friday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.62. Humana has a twelve month low of $163.11 and a twelve month high of $456.50. The company’s 50 day moving average is $388.59 and its two-hundred day moving average is $333.55. The stock has a market cap of $51.74 billion, a P/E ratio of 40.76, a PEG ratio of 2.39 and a beta of 0.74.

Humana (NYSE:HUM) last issued its earnings results on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.27 by $0.34. The business had revenue of $40.89 billion during the quarter, compared to analysts’ expectations of $40.58 billion. Humana had a net margin of 0.88% and a return on equity of 11.20%. The company’s revenue for the quarter was up 26.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $6.27 EPS. Research analysts expect that Humana will post 9.02 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Humana

Hedge funds have recently made changes to their positions in the business. Chapin Davis Inc. purchased a new position in shares of Humana in the 3rd quarter valued at approximately $12,323,000. GAMMA Investing LLC raised its stake in shares of Humana by 27.4% during the third quarter. GAMMA Investing LLC now owns 1,996 shares of the insurance provider’s stock worth $762,000 after purchasing an additional 429 shares during the last quarter. Gradient Investments LLC lifted its holdings in shares of Humana by 2.5% during the third quarter. Gradient Investments LLC now owns 13,738 shares of the insurance provider’s stock worth $5,242,000 after purchasing an additional 330 shares during the period. Valeo Financial Advisors LLC lifted its holdings in shares of Humana by 15.3% during the third quarter. Valeo Financial Advisors LLC now owns 814 shares of the insurance provider’s stock worth $310,000 after purchasing an additional 108 shares during the period. Finally, Vista Investment Partners LLC purchased a new position in Humana in the 3rd quarter valued at $3,254,000. Institutional investors and hedge funds own 92.38% of the company’s stock.

More Humana News

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Improved Medicare Advantage ratings: Humana reported that approximately 95% of its Medicare Advantage members are enrolled in plans rated four stars or higher for 2027, including 42% in 4.5-star plans. Six contracts received 4.5 stars and 12 received four stars, making Humana one of the clearest beneficiaries of the CMS release. Humana Announces Improved CMS Star Ratings
• Positive Sentiment: Potential earnings benefit: The higher ratings could improve Humana’s access to quality bonus payments and support enrollment during the annual Medicare Advantage enrollment period. Analysts described the company as the largest beneficiary of the 2027 ratings and Baird upgraded the stock to Buy. Reuters Medicare Star Ratings Report
• Positive Sentiment: Guidance maintained: Humana reaffirmed its full-year 2026 adjusted earnings outlook and raised its outlook for 2028 Stars-related revenue, reducing concerns that the ratings recovery would not translate into financial improvement. Humana Reaffirms 2026 Earnings Outlook
• Neutral Sentiment: Valuation and competition remain considerations: The rally has pushed HUM close to its 52-week high, while one comparison said UnitedHealth offers a more diversified business, better Medicare Advantage profitability and a lower valuation. Investors may therefore focus on whether the ratings improvement produces sustainable margin expansion.
• Negative Sentiment: Member benefit reductions: Humana reportedly plans to cut or eliminate Part B premium givebacks for 62% of affected members in 2027. That could disappoint some enrollees and create competitive or retention risks, even though the overall CMS ratings news was favorable. Humana Part B Giveback Report

Humana Company Profile

Humana Inc is a health and well-being company headquartered in Louisville, Kentucky. Founded in 1961, the company began as a nursing home operator before expanding into hospitals and health insurance. Today, Humana primarily provides health insurance products and healthcare services for older adults, individuals, military families and other members in the United States.

Humana’s insurance business offers Medicare Advantage, Medicare Supplement and prescription drug plans, as well as Medicaid coverage in select markets.