Deep Dive Into Humana Stock: Analyst Perspectives (7 Ratings)

In the last three months, 7 analysts have published ratings on Humana HUM, offering 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.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $284.57, a high estimate of $301.00, and a low estimate of $255.00. Observing a 2.41% increase, the current average has risen from the previous average price target of $277.86.

Analyzing Analyst Ratings: A Detailed Breakdown

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.

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: 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 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.

About 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.

Humana: Financial Performance Dissected

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Positive Revenue Trend: Examining Humana's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.26% as of 30 September, 2024, showcasing a substantial increase in 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.63% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Humana's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.8% ROE, the company effectively utilizes shareholder equity capital.

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 stands notably higher than the industry average, reaching 0.74. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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