Last Updated: 18 Sep 2024
Executive Summary
Humana Inc. (HUM) is a leading health insurance provider in the United States. The company has a strong financial position, with a market capitalization of $379.5 billion and an EBITDA of $4.26 billion. HUM's earnings per share (EPS) is $14.19, and its dividend yield is 0.0114%. The company's stock price is currently trading at $311.8, which is below its 52-week high of $526.87.
Company Overview
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. The company offers a wide range of health insurance products and services, including Medicare, Medicaid, and commercial health insurance. HUM also provides a variety of health and wellness programs, such as disease management programs and wellness screenings.
Fundamental Analysis
HUM's financial performance has been strong in recent years. The company's revenue has grown by an average of 10% per year over the past five years. HUM's net income has also grown by an average of 15% per year over the past five years. The company's profit margin is 1.53%, and its operating margin is 4.09%. HUM's return on assets (ROA) is 4.57%, and its return on equity (ROE) is 10.2%.
HUM's balance sheet is also strong. The company has a debt-to-equity ratio of 0.50, and its current ratio is 1.20. HUM has a cash balance of $1.5 billion and a total debt of $2.0 billion.
Technical Analysis
HUM's stock price has been trading in a range between $297.88 and $526.87 over the past 52 weeks. The stock price is currently trading below its 50-day moving average of $362.15 and its 200-day moving average of $371.22. The relative strength index (RSI) is 45.5, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
The short-term outlook for HUM is mixed. The stock price is trading below its moving averages, which indicates that the stock is in a downtrend. However, the RSI is in the neutral range, which indicates that the stock is not oversold. The stock price could continue to trade in a range between $297.88 and $362.15 in the short term.
Long Term Outlook
The long-term outlook for HUM is positive. The company has a strong financial position and a growing business. The aging population is expected to drive demand for health insurance, which should benefit HUM. The company is also expanding its business into new markets, such as Medicare Advantage and Medicaid.
Analyst Recommendations
The consensus analyst recommendation for HUM is a "Buy." Five analysts have a "Strong Buy" rating on the stock, seven analysts have a "Buy" rating, and 13 analysts have a "Hold" rating. The average analyst target price for HUM is $392.01.
