Where Humana Stands With Analysts

Ratings for Humana HUM were provided by 21 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

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.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $278.95, with a high estimate of $395.00 and a low estimate of $247.00. A decline of 22.03% from the prior average price target is evident in the current average.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Humana is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Humana. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Humana compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Humana's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

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.

Discovering Humana: A Closer Look

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.

Breaking Down Humana's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Over the 3 months period, Humana showcased positive performance, achieving a revenue growth rate of 11.26% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Humana's net margin is impressive, surpassing industry averages. With a net margin of 1.63%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Humana's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.8%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Humana's ROA stands out, surpassing industry averages. With an impressive ROA of 0.96%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Humana's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.74, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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