Analyst Expectations For Humana's Future

Across the recent three months, 9 analysts have shared their insights on Humana HUM, expressing a variety of opinions spanning 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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $382.56, along with a high estimate of $407.00 and a low estimate of $360.00. Observing a 5.15% increase, the current average has risen from the previous average price target of $363.83.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Humana among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Humana compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Humana's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Humana's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Humana analyst ratings.

Unveiling the Story Behind Humana

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.

Financial Insights: Humana

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Humana's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 10.73%. This indicates 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.5% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Humana's ROE excels beyond industry benchmarks, reaching 4.58%. 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 1.53%, 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 0.82. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically 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.

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