Critical Insights From Humana Analyst Ratings: What You Need To Know

Humana HUM underwent analysis by 16 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $461.5, a high estimate of $630.00, and a low estimate of $356.00. Experiencing a 15.64% decline, the current average is now lower than the previous average price target of $547.09.

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive Humana. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Humana. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Humana compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Humana's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into Humana's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Humana analyst ratings.

All You Need to Know About Humana

Humana is one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.

Humana: Delving into Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Humana displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 17.93%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Humana's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Humana's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.26%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Humana's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.05%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.74, Humana faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.