Breaking Down Humana: 11 Analysts Share Their Views

Humana HUM has been analyzed by 11 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Humana, revealing an average target of $384.82, a high estimate of $407.00, and a low estimate of $349.00. This current average reflects an increase of 5.14% from the previous average price target of $366.00.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Humana by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Humana. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Humana compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Humana's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Humana's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Humana analyst ratings.

Delving into Humana's Background

Humana is one of the largest private health insurers in the us 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.

A Deep Dive into Humana's Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Humana showcased positive performance, achieving a revenue growth rate of 10.44% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Humana's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 2.3%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Humana's ROE excels beyond industry benchmarks, reaching 4.14%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Humana's ROA stands out, surpassing industry averages. With an impressive ROA of 1.36%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Humana's debt-to-equity ratio stands notably higher than the industry average, reaching 0.77. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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