Investors Buy High Volume of Put Options on Humana (NYSE:HUM)

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Humana Inc. (NYSE:HUM) was the target of some unusual options trading on Friday. Stock traders bought 3,495 put options on the company. This represents an increase of approximately 65% compared to the average volume of 2,114 put options.

HUM opened at $363.17 on Friday. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.72 and a quick ratio of 1.72. The business has a 50 day simple moving average of $446.92 and a 200-day simple moving average of $434.17. The stock has a market capitalization of $46.68 billion, a P/E ratio of 17.54, a P/E/G ratio of 1.68 and a beta of 0.94. Humana has a 12 month low of $351.20 and a 12 month high of $475.44.

Humana (NYSE:HUM) last posted its quarterly earnings results on Wednesday, November 3rd. The insurance provider reported $4.83 EPS for the quarter, beating the consensus estimate of $4.61 by $0.22. The business had revenue of $20.70 billion during the quarter, compared to analysts’ expectations of $20.91 billion. Humana had a return on equity of 14.95% and a net margin of 3.30%. The company’s quarterly revenue was up 3.1% compared to the same quarter last year. During the same period last year, the firm earned $3.08 EPS. Research analysts anticipate that Humana will post 20.54 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 28th. Stockholders of record on Friday, December 31st will be issued a $0.70 dividend. The ex-dividend date is Thursday, December 30th. This represents a $2.80 annualized dividend and a dividend yield of 0.77%. Humana’s dividend payout ratio is currently 13.52%.

In other news, CEO Bruce D. Broussard sold 50,006 shares of the stock in a transaction dated Friday, November 5th. The stock was sold at an average price of $454.70, for a total value of $22,737,728.20. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.40% of the company’s stock.

A number of hedge funds have recently modified their holdings of the stock. Cordasco Financial Network raised its holdings in Humana by 32.0% during the third quarter. Cordasco Financial Network now owns 99 shares of the insurance provider’s stock worth $39,000 after purchasing an additional 24 shares during the last quarter. Moors & Cabot Inc. raised its holdings in Humana by 1.7% during the third quarter. Moors & Cabot Inc. now owns 1,455 shares of the insurance provider’s stock worth $567,000 after purchasing an additional 24 shares during the last quarter. Orion Portfolio Solutions LLC raised its holdings in Humana by 4.8% during the third quarter. Orion Portfolio Solutions LLC now owns 592 shares of the insurance provider’s stock worth $230,000 after purchasing an additional 27 shares during the last quarter. Cribstone Capital Management LLC raised its holdings in Humana by 2.3% during the second quarter. Cribstone Capital Management LLC now owns 1,235 shares of the insurance provider’s stock worth $547,000 after purchasing an additional 28 shares during the last quarter. Finally, Profund Advisors LLC increased its position in Humana by 1.1% during the second quarter. Profund Advisors LLC now owns 2,599 shares of the insurance provider’s stock worth $1,150,000 after buying an additional 29 shares in the last quarter. 91.75% of the stock is owned by hedge funds and other institutional investors.

A number of research analysts recently issued reports on the company. Credit Suisse Group raised their price target on Humana from $500.00 to $513.00 and gave the stock an “outperform” rating in a research note on Thursday, November 4th. BMO Capital Markets dropped their price target on Humana from $490.00 to $415.00 in a research note on Friday. SVB Leerink raised their price target on Humana from $494.00 to $528.00 and gave the stock an “outperform” rating in a research note on Thursday, November 4th. Citigroup raised their price target on Humana from $510.00 to $528.00 and gave the stock a “buy” rating in a research note on Tuesday, November 9th. Finally, Wells Fargo & Company dropped their price target on Humana from $529.00 to $452.00 in a research note on Friday. Seven equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Humana has a consensus rating of “Buy” and a consensus target price of $488.98.

Humana Company Profile

Humana Inc engages in the provision of health insurance services. The firm operates through the following segments: Retail, Group and Specialty and Healthcare Services. The Retail segment consists of products sold on a retail basis to individuals including medical and supplemental benefit plans such as Medicare, and State-based Medicaid contracts.

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