What Can We Learn From Humana Inc. (HUM)’s Valuation Ratios?


Humana Inc. (NYSE:HUM) finished Thursday with a subtraction of -$6.05 to close at $487.86, a downside of -1.22 percent. An average of 963,357 shares of common stock have been traded in the last five days. There was a fall of -$11.04 in the past week, and it reached a new high 25 times over the past 12 months. The last 20 days have seen an average of 919,279 shares traded, while the 50-day average volume stands at 797,828.

HUM stock has increased by 0.15% in the last month. The company shares reached their 1-month lowest point of $454.07 on 09/14/22. With the stock rallying to its 52-week high on 09/20/22, shares of the company touched a low of $351.20 and a high of $514.98 in 52 weeks. It has reached a new high 16 times so far this year and achieved 6.48% or $24.89 in price. In spite of this, the price is down -5.27% from the 52-week high.

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Insider Transactions

3 days have passed since Humana Inc. (HUM) last reported insider trading activity. Ventura Joseph C, who is Chief Legal Officer, most recently acquired $1,226 shares at $506.78 per share on Sep 20. In this transaction, the insider spent $621,313. Chief Information Officer, Deshpande Samir, disposed of 3,957 shares at a price of $434.19 on May 03. The insider now owns more than $1,718,101 worth of shares. Prior to that, Seg Pres, Pharmacy Sol & CCAO Fleming William Kevin went on to Sale 3,210 shares at $449.68 each on Apr 28. An amount of $1,443,471 was transacted.

Valuation Metrics

Humana Inc. (HUM) has a trailing price-to-earnings (P/E) ratio of 20.15. The stock’s beta is 0.77. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.70, the price-to-book (PB) ratio at 4.03, and the price-to-cash flow ratio at 26.38.

The company has a payout ratio of 12.10%. The company’s most recent quarterly dividend payment was $0.7875 a share, without any change from last year. Its latest increase dividend $0.0875 reported on Thursday February 17 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.73 and a total debt to equity ratio of 0.85 for the quarter ending June 29. Its gross profit as reported stood at $13.87 billion compared to revenue of $83.06 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Humana Inc.’s return on assets was 6.90%.

Earnings Surprise

For the three-month period that ended June 29, Humana Inc. had $11.29 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $696.0 million in the quarter, while revenues were grew 15.52%. The analyst consensus anticipated Humana Inc.’s latest quarter earnings to come in at $7.67 per share, but it turned out to be $8.67, a 13.00% surprise. For the quarter, EBITDA amounted to $1.42 billion. Shareholders own equity worth $126.55 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Humana Inc. (HUM) price momentum. RSI 9-day as of the close on 22 September was 49.57%, suggesting the stock is Neutral, with historical volatility in this time frame at 50.41%.

As of today, HUM’s price is $495.45 -2.21% or -$11.04 from its 5-day moving average. HUM is currently trading -1.32% lower than its 20-day SMA and +12.74% higher than its 100-day SMA. However, the stock’s current price level is +3.42% above the SMA50 and +12.87% above the SMA200.

The stochastic %K and %D were 60.79% and 69.50%, respectively, and the average true range (ATR) was 13.39. With the 14-day stochastic at 56.94% and the average true range at 12.54, the RSI (14) stands at 50.40%. The stock has reached 2.05 on the 9-day MACD Oscillator while the 14-day reading was at 4.41.

Analyst Ratings

Morgan Stanley upgraded Humana Inc. (NYSE: HUM) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal-weight. The consensus rating for Humana Inc. (HUM) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell HUM, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 19 others rate it as a “buy”.

What is HUM’s price target for the next 12 months?

Analysts predict a range of price targets between $450.00 and $590.00, with a median target of $550.00. Taking a look at these predictions, the average price target given by analysts for Humana Inc. (HUM) stock is $546.77.


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