Humana (NYSE: HUM)‘s stock had its “neutral” rating reaffirmed by Zacks in a report released on Tuesday. They currently have a $70.00 target price on the stock.
Zacks‘ analyst wrote, “Humana’s fourth quarter earnings surpassed the Zacks Consensus Estimate but lagged the year-ago results due to lower income in most segments. Moreover, operating cash flow declined due to lower net income. However, both premium and service revenues and investment income improved. Higher membership and lower operating cost ratio were the other positives. In the long term, strategic acquisitions and alliances are enhancing membership, earnings and Medicare coverage. Strong financials and sturdy ratings also boost optimism. However, Humana’s dependence on Medicare Advantage plans, rising expenses, adverse impact of healthcare reform and high competition raise concerns. Overall, we believe the company needs to follow prudent expense management and focus on growth through acquisitions and diversifying its earning sources to attract long-term investors. We maintain a Neutral recommendation on Humana.”
Humana traded up 0.88% on Tuesday, hitting $67.44. Humana has a 1-year low of $59.92 and a 1-year high of $93.36. The stock’s 50-day moving average is currently $74.08. The company has a market cap of $10.680 billion and a price-to-earnings ratio of 8.95.
Humana last posted its quarterly earnings results on Monday, February 4th. The company reported $1.19 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.07 by $0.12. The company had revenue of $9.56 billion for the quarter, compared to the consensus estimate of $9.73 billion. During the same quarter in the prior year, the company posted $1.20 earnings per share. The company’s quarterly revenue was up 5.5% on a year-over-year basis. Humana has set its Q1 guidance at $1.75-1.85 EPS. Analysts expect that Humana will post $7.93 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on HUM. Analysts at Barclays Capital reiterated an “overweight” rating on shares of Humana in a research note to investors on Tuesday. They now have a $87.00 price target on the stock. Separately, analysts at Oppenheimer reiterated an “outperform” rating on shares of Humana in a research note to investors on Friday. They now have a $88.00 price target on the stock. Finally, analysts at TheStreet reiterated a “buy” rating on shares of Humana in a research note to investors on Friday.
The company also recently announced a quarterly dividend, which is scheduled for Friday, April 26th. Shareholders of record on Thursday, March 28th will be paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 1.54%. The ex-dividend date is Tuesday, March 26th.
Humana Inc. (Humana) is a health care company. Humana operates in three segments: Retail, Employer Group, and Health and Well-Being Services.
To view Zacks’ full report, visit www.zacks.com
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.