RBC Capital took its Humana Inc. [NYSE:HUM] rating to the equivalent of Outperform from Sector Perform, and the price target to $479 from $429, in a research note dated January 4, 2021. That figure represents around a 16.75% premium from where the company’s shares closed on Thursday. Some new analysts also started their coverage, with Bernstein’s analysts assigning the shares to “a Mkt perform” rating in a research note to investors issued in early October. Meanwhile, SVB Leerink had launched its coverage on HUM with ”an Outperform”, in a research note produced for clients July 01, 2020. In addition, there was a downgrade from Cowen on June 16, 2020. The rater changed HUM from ”an Outperform” to “a Market perform”.
Is Humana Inc. [NYSE:HUM] a Good Buy Right Now?
It should be noted that HUM technical indicators for short, intermediate as well as long term progress have placed an overall average of 8% as Buy. The average signal changed from 8% Buy in the last week and compares with 40% Buy in the past month. Data from Humana Inc.’s Trend Spotter indicated that the signals were Weakest. The stock current average is 0.82 million shares in the past 20 days and the short term average signal indicates a Hold. In the last 50 days, the average trading volume was 0.85 million shares while the medium term average advocated for Hold. The average long-term signal stands at 50% Buy and the 100-day average volume stands at 0.72 million shares.
HUM Price Performance
On Wall Street, Humana Inc. [NYSE:HUM] finished Thursday’s session up 1.02% at $410.27. The stock went up to $411.01 at the same session while its lowest single day price was $403.30. In the last five days, it saw a rise of about 1.28%, Humana Inc. shares gained by almost 11.94% since the beginning of the year. However, the share price has dropped to as low as -13.57% below its one year high. On 11/04/20, the company shares recorded $474.70, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 03/23/20, the same year at $208.25. The company’s shares have inclined by 12.95% in the past year. The 50-day SMA achieved is $412.61 while the 200-day SMA is $391.77. Volume gained to 0.56 million from 0.53 million in the previous session.
Humana Inc. [HUM] Valuation Measures
Notably, Humana Inc. [HUM] stock can be classified as a good candidate in the listing of underestimated low-priced Healthcare Plans companies to purchase soonest possible with the prevailing 12-month PE ratio of 13.15. The measure means the stock is exchanging at a discount as compared to the 16.72x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 0.72 PS value ratio is reported for the last one year of reported earnings. That is lower than the industry average of 0.73 which means HUM serve an attractive investment opportunity compared to its competitors.
HUM Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 405.38 level, and in case of violation of this particular level, it will cause more drop to 400.48 level. On the upper level, 415.90 is still the key resistance. The stock may increase to the subsequent resistance at 413.09. The Relative Strength Index (RSI) pinned on the 14-day chart is 54.78, implying a neutral technical stance while the MACD stands at 9.97, meaning price will increase in the next trading period. Percent R indicator moved to 11.47%, implying bullish price movement. Stochastic %K at 82.05% suggest selling the stock.
What is the short interest in Humana Inc.?
Short interest in the Humana Inc. stock has surged, increasing by 0.54 million shares to total 1.46 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 2.0 million, data from Yahoo Finance shows. The decrease of -36.99% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 1.10% of the overall float for the stock.
Humana Inc.’s Biggest Shareholders: Who Owns Humana Inc. [HUM]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 9,636,081 shares or roughly 7.28% of the outstanding HUM shares. This means their shares have reduced by -106,066 from the 9,636,081 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, T. Rowe Price Associates, Inc. updated stake is worth $3,737,933,805. Details in the latest 13F filings reveal that Fidelity Management & Research Co acquired their 3.49% stake valued at $2,992,819,214 while BlackRock Fund Advisors cut theirs at $2,598,574,561. During the last quarter, Fidelity Management & Research Co raised 251,745 of its shares in Humana Inc. while BlackRock Fund Advisors sold -30,741 shares. The SSgA Funds Management, Inc.’s holdings currently number 6,000,654 shares at $2461888316.58. According to the firm’s last 13F report, Wellington Management Co. LLP shares in the company at filing stood at 5,219,846 shares, roughly $2,090,652,720.
HUM Earnings Forecast For The Current Quarter
Humana Inc. [HUM] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $18.8B and an earnings per share of -$2.37 for Dec 2020. Looking further ahead, the company is expected to report revenue of $20.74B at an EPS of $5.84 for Mar 2021. The estimates represent upside of 8.80% and 16.14% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
HUM Earnings Estimates For The Current Year
For the financial year, Humana Inc. [NYSE:HUM] is expected to bring in revenue of $76.02B. The returns are nearly $11.13 billion higher than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 18.67, higher than that of FY19 by $0.8. Estimates put this year’s earnings growth at 4.50%, 16.20% for the next, and at an annual 11.98% over the next 5-year period. As for sales, forecasts are for an increase of 17.20% in the current fiscal year and a further 8.80% over the following year.