Humana Inc. Receives a Buy from Jefferies

By Ryan Adsit

Jefferies analyst David Windley reiterated a Buy rating on Humana Inc. (NYSE: HUM) on November 4 and set a price target of $206. The company’s shares closed last Friday at $167.42.

Windley observed:

“We reduce our 2017-18 earnings outlook by 4% to reflect a higher PYD headwind, higher residual HIX losses, and lower MA enrollment. While the update was a net negative, in our view, we continue to see attractive risk/ reward. HUM’s MA margins are on track to expand by just over 100bps this year to a low 4% level. That should modestly rise in 2017 as it works toward its 4.5-5% target.”

According to TipRanks.com, Windley is a top 100 analyst with an average return of 13.5% and a 63.7% success rate. Windley covers the Healthcare sector, focusing on stocks such as Quintiles Transnational, WellCare Health Plans, and Charles River Labs .

Humana Inc. has an analyst consensus of Moderate Buy, with a price target consensus of $205.40.

Humana Inc.’s market cap is currently $24.96B and has a P/E ratio of 26.26. The company has a book value ratio of 2.2951.

Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is neutral on the stock. Most recently, in March 2015, James E. Murray, the EVP & COO of HUM sold 35,220 shares for a total of $5,666,715.

Humana, Inc. is a health care company that offers a wide range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. The company operates its business through the following segments: Retail, Employer Group, and Health and Well-Being Services. The Retail segment consists of Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products, marketed directly to individuals. The Employer Group segment consists of Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products, as well as administrative services only products marketed to employer groups. The Health and Well-Being Services segment includes services offered to its health plan members as well as to third parties that promote health and wellness, including provider services, pharmacy, integrated wellness, and home care services. The company was founded by David A. Jones, Sr. and Wendell Cherry in 1961 and is headquartered in Louisville, KY.