Robert W. Baird Upgrades Humana (NYSE:HUM) to “Outperform”

Humana (NYSE:HUM) was upgraded by equities research analysts at Robert W. Baird from a “neutral” rating to an “outperform” rating in a research note issued to investors on Friday, MarketBeat.com reports. The firm presently has a $596.00 price objective on the insurance provider’s stock. Robert W. Baird’s target price points to a potential upside of 38.34% from the stock’s current price.

HUM has been the subject of several other research reports. Barclays increased their price objective on shares of Humana from $515.00 to $582.00 and gave the stock an “overweight” rating in a research report on Friday. Guggenheim lifted their price objective on shares of Humana from $269.00 to $471.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. JPMorgan Chase & Co. increased their price objective on shares of Humana from $316.00 to $393.00 and gave the stock a “neutral” rating in a research note on Monday, August 10th. Monness Crespi & Hardt upgraded shares of Humana to a “buy” rating in a research report on Friday. Finally, Piper Sandler raised Humana from a “hold” rating to an “overweight” rating and set a $463.00 price objective for the company in a research report on Thursday, July 30th. Twenty research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Humana presently has an average rating of “Moderate Buy” and an average target price of $445.74.

Humana Stock Down 0.2%

HUM stock opened at $430.84 on Friday. Humana has a 12 month low of $163.11 and a 12 month high of $456.50. The firm has a market cap of $51.74 billion, a PE ratio of 40.76, a P/E/G ratio of 2.67 and a beta of 0.74. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.74 and a quick ratio of 1.74. The firm has a 50 day simple moving average of $388.59 and a 200 day simple moving average of $334.71.

Humana (NYSE:HUM) last posted its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $7.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.27 by $0.34. The firm had revenue of $40.89 billion for the quarter, compared to the consensus estimate of $40.58 billion. Humana had a return on equity of 11.20% and a net margin of 0.88%. The business’s revenue for the quarter was up 26.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $6.27 EPS. Equities research analysts forecast that Humana will post 9.00 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

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

Humana News Roundup

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.