The stock of Humana Inc. (NYSE: HUM) has increased by 2.46 when compared to last closing price of 314.64. Despite this, the company has experienced a 0.86% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-16 that Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock’s price, do they really matter?
Is It Worth Investing in Humana Inc. (NYSE: HUM) Right Now?
Humana Inc. (NYSE: HUM) has a higher price-to-earnings ratio of 16.26x compared to its average ratio, The 36-month beta value for HUM is at 0.48. Analysts have varying views on the stock, with 5 analysts rating it as a “buy,” 7 rating it as “overweight,” 7 as “hold,” and 0 as “sell.”
The public float for HUM is 120.12M, and currently, shorts hold a 2.04% of that float. The average trading volume for HUM on April 16, 2024 was 2.09M shares.
HUM’s Market Performance
HUM’s stock has seen a 0.86% increase for the week, with a -7.40% drop in the past month and a -26.53% fall in the past quarter. The volatility ratio for the week is 1.62%, and the volatility levels for the past 30 days are at 1.94% for Humana Inc. The simple moving average for the last 20 days is -2.62% for HUM stock, with a simple moving average of -26.86% for the last 200 days.
Analysts’ Opinion of HUM
Many brokerage firms have already submitted their reports for HUM stocks, with BofA Securities repeating the rating for HUM by listing it as a “Neutral.” The predicted price for HUM in the upcoming period, according to BofA Securities is $342 based on the research report published on April 02, 2024 of the current year 2024.
HUM Trading at -7.05% from the 50-Day Moving Average
After a stumble in the market that brought HUM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -40.43% of loss for the given period.
Volatility was left at 1.94%, however, over the last 30 days, the volatility rate increased by 1.62%, as shares sank -7.38% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -15.12% lower at present.
During the last 5 trading sessions, HUM rose by +0.61%, which changed the moving average for the period of 200-days by -27.55% in comparison to the 20-day moving average, which settled at $329.76. In addition, Humana Inc. saw -29.58% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at HUM starting from Mesquita Jorge S., who purchase 545 shares at the price of $367.09 back on Feb 20 ’24. After this action, Mesquita Jorge S. now owns 2,578 shares of Humana Inc., valued at $200,066 using the latest closing price.
Diamond Susan M, the Chief Financial Officer of Humana Inc., sale 4,156 shares at $526.28 during a trade that took place back on May 04 ’23, which means that Diamond Susan M is holding 3,931 shares at $2,187,226 based on the most recent closing price.
Stock Fundamentals for HUM
Current profitability levels for the company are sitting at:
- 0.04 for the present operating margin
- 0.88 for the gross margin
The net margin for Humana Inc. stands at 0.02. The total capital return value is set at 0.14. Equity return is now at value 15.77, with 5.49 for asset returns.
Based on Humana Inc. (HUM), the company’s capital structure generated 0.42 points at debt to capital in total, while cash flow to debt ratio is standing at 0.34. The debt to equity ratio resting at 0.73. The interest coverage ratio of the stock is 8.14.
Currently, EBITDA for the company is 4.6 billion with net debt to EBITDA at 1.66. When we switch over and look at the enterprise to sales, we see a ratio of 0.44. The receivables turnover for the company is 52.27for trailing twelve months and the total asset turnover is 2.27. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.59.
Conclusion
In conclusion, Humana Inc. (HUM) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
