Zacks Research Has Negative Outlook for Humana Q1 Earnings

Humana Inc. (NYSE:HUM) – Zacks Research reduced their Q1 2026 EPS estimates for shares of Humana in a research report issued to clients and investors on Wednesday, April 15th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings per share of $9.03 for the quarter, down from their previous estimate of $9.05. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Humana’s current full-year earnings is $16.47 per share. Zacks Research also issued estimates for Humana’s FY2026 earnings at $9.90 EPS, FY2027 earnings at $14.16 EPS and FY2028 earnings at $18.34 EPS.

Humana (NYSE:HUM) last released its earnings results on Wednesday, February 11th. The insurance provider reported ($3.96) earnings per share for the quarter, topping analysts’ consensus estimates of ($4.01) by $0.05. The firm had revenue of $32.64 billion for the quarter, compared to the consensus estimate of $32.08 billion. Humana had a net margin of 0.92% and a return on equity of 11.43%. The company’s revenue was up 11.3% compared to the same quarter last year. During the same period in the prior year, the firm earned ($2.16) EPS. Humana has set its FY 2026 guidance at 9.000-9.000 EPS.

Several other equities research analysts also recently weighed in on HUM. Wells Fargo & Company raised their price target on Humana from $206.00 to $227.00 and gave the stock an “equal weight” rating in a report on Tuesday, April 7th. Morgan Stanley set a $146.00 price objective on shares of Humana in a research report on Thursday, February 12th. Cantor Fitzgerald dropped their target price on shares of Humana from $290.00 to $201.00 and set a “neutral” rating on the stock in a research report on Thursday, February 12th. Wolfe Research lowered their price objective on shares of Humana from $325.00 to $250.00 and set an “outperform” rating for the company in a research note on Monday, April 6th. Finally, Raymond James Financial cut their target price on Humana from $340.00 to $230.00 and set an “outperform” rating on the stock in a research report on Friday, February 13th. Seven analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $222.09.

Humana Trading Up 1.2%

HUM stock opened at $200.66 on Friday. The firm has a market cap of $24.09 billion, a PE ratio of 20.43, a price-to-earnings-growth ratio of 2.13 and a beta of 0.44. The firm has a fifty day moving average price of $181.09 and a 200 day moving average price of $231.32. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.00 and a current ratio of 2.00. Humana has a fifty-two week low of $163.11 and a fifty-two week high of $315.35.

Institutional Trading of Humana

A number of large investors have recently modified their holdings of HUM. Capital International Investors boosted its stake in Humana by 113.9% in the fourth quarter. Capital International Investors now owns 5,818,008 shares of the insurance provider’s stock valued at $1,490,239,000 after acquiring an additional 3,097,571 shares during the last quarter. Massachusetts Financial Services Co. MA grew its stake in shares of Humana by 273.2% during the third quarter. Massachusetts Financial Services Co. MA now owns 3,488,261 shares of the insurance provider’s stock worth $907,541,000 after purchasing an additional 2,553,509 shares during the period. Norges Bank bought a new stake in Humana in the fourth quarter valued at about $456,632,000. Wellington Management Group LLP lifted its stake in Humana by 4,481.7% in the fourth quarter. Wellington Management Group LLP now owns 1,196,502 shares of the insurance provider’s stock valued at $306,460,000 after buying an additional 1,170,387 shares during the period. Finally, Franklin Resources Inc. grew its position in shares of Humana by 914.5% during the 4th quarter. Franklin Resources Inc. now owns 1,255,665 shares of the insurance provider’s stock worth $321,613,000 after buying an additional 1,131,893 shares during the period. Institutional investors and hedge funds own 92.38% of the company’s stock.

Insider Activity

In related news, insider Sanjay K. Shetty purchased 810 shares of the business’s stock in a transaction that occurred on Monday, February 23rd. The shares were purchased at an average cost of $185.21 per share, with a total value of $150,020.10. Following the completion of the acquisition, the insider directly owned 11,657 shares of the company’s stock, valued at approximately $2,158,992.97. The trade was a 7.47% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.20% of the stock is currently owned by insiders.

Humana Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Friday, June 26th will be issued a $0.885 dividend. The ex-dividend date of this dividend is Friday, June 26th. This represents a $3.54 dividend on an annualized basis and a yield of 1.8%. Humana’s dividend payout ratio is currently 36.05%.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: Humana’s U.S. arm recovered $30 million from Lupin to settle an antitrust claim, providing a modest cash inflow and removing litigation uncertainty. Lupin’s U.S. Arm Settles Humana Antitrust Claim for $30 Million
• Positive Sentiment: The Board declared a quarterly cash dividend of $0.885/share payable July 31, which supports income investors and signals management confidence in cash flow. Humana Board Declares Payment of Quarterly Dividend to Stockholders
• Neutral Sentiment: A Humana/University of Chicago study on phone‑based inhaler training for COPD patients highlights CenterWell care capabilities and potential member outcomes benefits — positive for long‑term service differentiation but limited immediate stock impact. On the Line for Lung Health: Telephone Training Helps COPD Patients Perfect Inhaler Use
• Neutral Sentiment: Television commentator Jim Cramer discussed Humana’s business today, bringing attention and trading volume; commentary can move short‑term flows but doesn’t change fundamentals by itself. Jim Cramer Discusses Big Humana (HUM) Business
• Negative Sentiment: Reports of a data breach affecting Humana customers in Texas and five other states raise near‑term remediation, notification and reputational risks; potential regulatory scrutiny could add costs. Data breach hits Humana customers in Texas, five other states
• Negative Sentiment: Zacks Research downgraded Humana to a “Strong Sell” and nudged down Q1–Q3 2027 EPS estimates slightly, which can pressure sentiment and trigger short‑term selling from momentum‑driven investors. Zacks Research Downgrades Humana
• Negative Sentiment: Robert W. Baird cut its price target from $264 to $205 while keeping a neutral rating — a notable downward revision that may cap analyst‑driven upside. Baird adjusts price target on Humana to $205 from $264; maintains neutral rating

Humana Company Profile

Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.

In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.