Is Humana Inc. (HUM) positioned for future growth?

Humana Inc. (NYSE: HUM) stock fell -0.20% on Thursday to $471.57 against a previous-day closing price of $472.50. With 0.66 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.52 million shares. During the session, the Healthcare Plans company that operates in wider Healthcare sector, reached to the highest price of $478.45 whereas the lowest price it dropped to was $468.11. The 52-week range on HUM shows that it touched its highest point at $571.30 and its lowest point at $423.29 during that stretch. It currently has a 1-year price target of $581.27. With its current market cap of 58.96 billion, HUM has annualized dividend of $3.54 while the current yield stands at 0.75%. Beta for the stock currently stands at 0.66.

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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 -0.09%, but this was down by -4.79% over a month. Three-month performance surged to 3.64% while six-month performance fell -2.54%. The stock gained 0.70% in the past year, while it has lost -7.93% so far this year. A look at the trailing 12-month EPS for HUM yields 26.80 with Next year EPS estimates of 32.10. For the next quarter, that number is 7.19. This implies an EPS growth rate of -2.60% for this year and 13.42% for next year. EPS is expected to grow by 13.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 4.50%.

Float and Shares Shorts:

At present, 124.57 million HUM shares are outstanding with a float of 123.70 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.65 million, which was 2.14% higher than short shares on Jul 30, 2023. In addition to Mr. Bruce Dale Broussard as the firm’s Pres, CEO & Director, Ms. Susan Marie Diamond serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 95.64% of HUM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.72% of HUM, in contrast to 56.31% held by mutual funds. Shares owned by individuals account for 37.55%. As the largest shareholder in HUM with 8.59% of the stake, The Vanguard Group, Inc. holds 10,738,376 shares worth 10,738,376. A second-largest stockholder of HUM, T. Rowe Price Associates, Inc., holds 7,056,556 shares, controlling over 5.65% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in HUM, holding 6,848,706 shares or 5.48% stake. With a 3.12% stake in HUM, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 3,893,526 shares are owned by the mutual fund manager. The Washington Mutual Investors Fund, which owns about 2.80% of HUM stock, is the second-largest Mutual Fund holder. It holds 3,498,091 shares valued at 1.6 billion. Vanguard 500 Index Fund holds 2.40% of the stake in HUM, owning 2,992,415 shares worth 1.37 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HUM since 0 analysts follow the stock currently. 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 $640.00 and a low target of $468.00, the average target price over the next 12 months is $581.27. Based on these targets, HUM could surge 35.72% to reach the target high and fall by -0.76% to reach the target low. Reaching the average price target will result in a growth of 23.26% 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.

Summary of Insider Activity:

Insiders traded HUM stock several times over the past three months with 2 Buys and 2 Sells. In these transactions, 521 shares were bought while 210 shares were sold. The number of buy transactions has increased to 67 while that of sell transactions has risen to 77 over the past year. The total number of shares bought during that period was 169,565 while 198,254 shares were sold.

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