What 8 Analyst Ratings Have To Say About Humana

8 analysts have expressed a variety of opinions on Humana HUM over the past quarter, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Humana, presenting an average target of $280.38, a high estimate of $316.00, and a low estimate of $255.00. This upward trend is evident, with the current average reflecting a 1.31% increase from the previous average price target of $276.75.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Humana. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Ann Hynes |Mizuho |Raises |Outperform | $316.00|$305.00 | |Lisa Gill |JP Morgan |Lowers |Neutral | $256.00|$257.00 | |Andrew Mok |Barclays |Raises |Equal-Weight | $270.00|$255.00 | |Ben Hendrix |RBC Capital |Maintains |Outperform | $283.00|$283.00 | |Sarah James |Cantor Fitzgerald |Maintains |Neutral | $290.00|$290.00 | |Erin Wright |Morgan Stanley |Lowers |Equal-Weight | $285.00|$301.00 | |Andrew Mok |Barclays |Raises |Equal-Weight | $255.00|$253.00 | |Jessica Tassan |Piper Sandler |Raises |Neutral | $288.00|$270.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Humana. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Delving into Humana's Background

Humana is one of the largest private health insurers in the US, and the firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from Medicare, Medicaid, and the military's Tricare program. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.

Key Indicators: Humana's Financial Health

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 3M period, Humana showcased positive performance, achieving a revenue growth rate of 10.4% as of 31 December, 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 is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.37%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Humana's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -4.08%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Humana's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.44%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Humana's debt-to-equity ratio is below the industry average. With a ratio of 0.72, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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