Humana Inc. (NYSE: HUM) stock jumped 0.67% on Friday to $493.91 against a previous-day closing price of $490.63. With 1.0 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.84 million shares. During the session, the Healthcare Plans company that operates in wider Healthcare sector, reached to the highest price of $502.50 whereas the lowest price it dropped to was $485.43. The 52-week range on HUM shows that it touched its highest point at $514.98 and its lowest point at $351.20 during that stretch. It currently has a 1-year price target of $539.57. With its current market cap of 62.19 billion, HUM has annualized dividend of $3.15 while the current yield stands at 0.64%. Beta for the stock currently stands at 0.77.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HUM was down-trending over the past week, with a drop of -0.67%, but this was up by 0.15% over a month. Three-month performance surged to 8.64% while six-month performance rose 14.70%. The stock gained 23.37% in the past year, while it has gained 6.48% so far this year. A look at the trailing 12-month EPS for HUM yields 24.51 with Next year EPS estimates of 27.84. For the next quarter, that number is 6.25. This implies an EPS growth rate of -10.50% for this year and 11.74% for next year. EPS is expected to grow by 14.45% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 41.00%.
Float and Shares Shorts:
At present, 126.52 million HUM shares are outstanding with a float of 126.30 million shares on hand for trading. On Jul 14, 2022, short shares totaled 1.61 million, which was 1.27% higher than short shares on Jun 14, 2022. In addition to Mr. Bruce Dale Broussard as the firm’s Pres, CEO & Director, Ms. Susan Marie Diamond serves as its Chief Financial Officer.
Through their ownership of 96.92% of HUM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.60% of HUM, in contrast to 59.61% held by mutual funds. Shares owned by individuals account for 36.21%. As the largest shareholder in HUM with 8.31% of the stake, The Vanguard Group, Inc. holds 10,515,734 shares worth 10,515,734. A second-largest stockholder of HUM, Wellington Management Co. LLP, holds 9,396,515 shares, controlling over 7.43% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in HUM, holding 7,572,451 shares or 5.98% stake. With a 2.96% stake in HUM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,745,144 shares are owned by the mutual fund manager. The Washington Mutual Investors Fund, which owns about 2.67% of HUM stock, is the second-largest Mutual Fund holder. It holds 3,378,291 shares valued at 1.63 billion. Vanguard Wellington Fund holds 2.26% of the stake in HUM, owning 2,862,921 shares worth 1.38 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HUM since 25 analysts follow the stock currently. There are 18 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HUM analysts setting a high price target of $590.00 and a low target of $450.00, the average target price over the next 12 months is $546.32. Based on these targets, HUM could surge 19.45% to reach the target high and fall by -8.89% to reach the target low. Reaching the average price target will result in a growth of 10.61% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HUM will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $25.27 being high and $24.47 being low. For HUM, this leads to a yearly average estimate of $24.94. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Humana Inc. surprised analysts by $1.00 when it reported $8.67 EPS against a consensus estimate of $7.67. The surprise factor in the prior quarter was $1.24. Based on analyst estimates, the high estimate for the next quarter is $6.53 and the low estimate is $6.15. The average estimate for the next quarter is thus $6.25.
Summary of Insider Activity:
Insiders traded HUM stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 746 shares were bought while 326 shares were sold. The number of buy transactions has increased to 62 while that of sell transactions has risen to 59 over the past year. The total number of shares bought during that period was 136,646 while 97,054 shares were sold.