Humana Inc (NYSE:HUM) Sees Significant Increase in Short Interest

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Humana Inc (NYSE:HUM) was the target of a significant growth in short interest during the month of May. As of May 31st, there was short interest totalling 2,459,200 shares, a growth of 24.1% from the April 30th total of 1,981,200 shares. Based on an average trading volume of 1,550,000 shares, the days-to-cover ratio is presently 1.6 days. Currently, 1.8% of the company’s stock are sold short.

A number of hedge funds have recently added to or reduced their stakes in the business. Nordea Investment Management AB lifted its stake in shares of Humana by 10.4% in the first quarter. Nordea Investment Management AB now owns 54,842 shares of the insurance provider’s stock valued at $14,586,000 after buying an additional 5,156 shares during the period. Allstate Corp lifted its stake in shares of Humana by 0.8% in the first quarter. Allstate Corp now owns 10,324 shares of the insurance provider’s stock valued at $2,746,000 after buying an additional 77 shares during the period. Coe Capital Management LLC lifted its stake in shares of Humana by 154.4% in the first quarter. Coe Capital Management LLC now owns 4,254 shares of the insurance provider’s stock valued at $1,132,000 after buying an additional 2,582 shares during the period. Meridian Wealth Management LLC bought a new stake in shares of Humana in the first quarter valued at about $170,000. Finally, Altfest L J & Co. Inc. bought a new stake in shares of Humana in the first quarter valued at about $666,000. Institutional investors own 92.61% of the company’s stock.

Humana stock traded up $2.25 during mid-day trading on Thursday, hitting $259.04. 34,576 shares of the company’s stock were exchanged, compared to its average volume of 1,364,949. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.65 and a quick ratio of 1.65. The company has a market capitalization of $34.83 billion, a price-to-earnings ratio of 17.67, a PEG ratio of 1.06 and a beta of 0.85. Humana has a 1-year low of $225.65 and a 1-year high of $355.88.

Humana (NYSE:HUM) last released its quarterly earnings results on Wednesday, May 1st. The insurance provider reported $4.48 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $4.30 by $0.18. Humana had a net margin of 2.99% and a return on equity of 20.77%. The company had revenue of $16.11 billion during the quarter, compared to analysts’ expectations of $15.67 billion. During the same period in the prior year, the company earned $3.36 earnings per share. The business’s quarterly revenue was up 12.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that Humana will post 17.48 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, July 26th. Shareholders of record on Friday, June 28th will be issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 0.85%. The ex-dividend date is Thursday, June 27th. Humana’s dividend payout ratio (DPR) is 15.12%.

A number of equities analysts have recently weighed in on the stock. UBS Group assumed coverage on shares of Humana in a research note on Tuesday, April 23rd. They issued a “neutral” rating and a $266.00 price target on the stock. Zacks Investment Research downgraded shares of Humana from a “hold” rating to a “sell” rating in a research note on Thursday, April 11th. ValuEngine downgraded shares of Humana from a “hold” rating to a “sell” rating in a research note on Thursday, April 11th. Citigroup dropped their price target on shares of Humana from $362.00 to $302.00 and set a “buy” rating on the stock in a research note on Thursday, May 2nd. Finally, SunTrust Banks lowered their target price on shares of Humana to $300.00 in a research report on Thursday, May 2nd. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and fourteen have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $337.26.

Humana Company Profile

Humana Inc, together with its subsidiaries, operates as a health and well-being company in the United States. The company offers medical and supplemental benefit plans to individuals. It also has contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits.

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