Is Humana Inc. (NYSE: HUM) Proving The Doubters Wrong?

Humana Inc. (HUM) concluded trading on Thursday at a closing price of $355.36, with 10.82 million shares of worth about $3.85 billion changed hands on the day. Half year performance of the stock remained negative as price took a plunge of -20.72% during that period and on Thursday, January 25 the price saw a loss of about -11.69%. Currently the company’s common shares owned by public are about 124.97M shares, out of which, 122.54M shares are available for trading.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 37 times over the past 12 months. They bought 58,921 shares in 16 of the transactions. In 21 selling transactions, insiders dumped 58,569 shares.

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However, the stock later moved at a day high price of 364.82, or with a loss of -11.69%. Stock saw a price change of -13.74% in past 5 days and over the past one month there was a price change of -21.59%. Year-to-date (YTD), HUM shares are showing a performance of -22.38% which decreased to -28.98% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $390.50 but also hit the highest price of $541.21 during that period. The average intraday trading volume for Humana Inc. shares is 1.69 million. The stock is currently trading -19.87% below its 20-day simple moving average (SMA20), while that difference is down -24.40% for SMA50 and it goes to -26.63% lower than SMA200.

Humana Inc. (NYSE: HUM) currently have 124.97M outstanding shares and institutions hold larger chunk of about 93.61% of that.

The stock has a current market capitalization of $43.75B and its 3Y-monthly beta is at 0.46. PE ratio of stock for trailing 12 months is 17.93, while it has posted earnings per share of $19.82 in the same period. Its PEG reads 1.32 while making debt-to-equity ratio of 0.69. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for HUM, volatility over the week remained 3.45% while standing at 2.52% over the month.

Analysts are in expectations that Humana Inc. (HUM) stock would likely to be making an EPS of $0.15 in the current quarter, while forecast for next quarter EPS is $9.45 and it is $29.1 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.12 which is $2.15 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $1.62 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 8.62% while it is estimated to increase by 19.90% in next year. EPS is likely to grow at an annualized rate of 13.55% for next 5-years, compared to annual growth of 10.46% made by the stock over the past 5-years.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Deutsche Bank on Jan-26-24 offering a Hold rating for the stock and assigned a target price of $360 to it.

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