BofA Securities has recently raised Humana Inc (HUM) stock to Neutral rating, as announced on November 6, 2024, according to Finviz. Earlier, on October 11, 2024, KeyBanc Capital Markets had initiated the stock to Sector Weight. Bernstein also raised Outperform rating with a price target of $308. Additionally, TD Cowen reduced Hold rating on October 7, 2024, with a target price of $261. Jefferies analysts, in their report published on October 7, 2024, also reduced Hold rating and set a price target of $519 for Humana Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Humana Inc (HUM) Stock Trading Recap
On Monday, Humana Inc (HUM) stock saw a decline, ending the day at $282.44 which represents a decrease of $-5.68 or -1.97% from the prior close of $288.12. The stock opened at $273 and touched a low of $270.72 during the day, reaching a high of $283.6. The volume of shares traded was 2.21 million exceeding the average volume of 2.21 million.
HUM Stock Performance and Moving Averages
In recent trading, Humana Inc (HUM) stock price has shown some volatility, fluctuating 10.52% over the last five trades and 9.44% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -16.83%, and it has plunged by -20.85% in the previous three months. Currently, HUM is trading at 6.30%, -1.91%, and -15.98% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, HUM, a Healthcare sector stock, is trading -46.42% below its 52-week high but remains 32.41% above its 52-week low. The Average True Range (ATR) (14 days) of 12.16 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Humana Inc’s Profitability and Valuation Ratios
Humana Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 2.40% and a profit margin of 1.18%, with a gross margin of -16.83%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Humana Inc’s market capitalization stands at $34.05 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 25.01, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 16.33. Additionally, the Price-to-Sales Ratio is 0.3, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.94, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.25% of Humana Inc (HUM)’s shares, while financial institutions hold 97.17%.
