After Today’s Bearish Options Activity, Is Humana Inc’s Near-Term Analysis Positive?

 After Today's Bearish Options Activity, Is Humana Inc's Near Term Analysis Positive?

In today’s session Humana Inc (HUM) recorded an unusually high (401) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2018 put, expecting serious HUM decrease. With 401 contracts traded and 10214 open interest for the Jan, 18 contract, it seems this is a quite bearish bet. The option with symbol: HUM180119P00150000 closed last at: $17.3 or 31.1% up. About 45,444 shares traded hands. Humana Inc (NYSE:HUM) has declined 9.33% since March 11, 2016 and is downtrending. It has underperformed by 14.78% the S&P500.

Analysts await Humana Inc (NYSE:HUM) to report earnings on November, 4. They expect $2.87 earnings per share, up 32.87% or $0.71 from last year’s $2.16 per share. HUM’s profit will be $430.49M for 14.90 P/E if the $2.87 EPS becomes a reality. After $2.30 actual earnings per share reported by Humana Inc for the previous quarter, Wall Street now forecasts 24.78% EPS growth.

Humana Inc (NYSE:HUM) Ratings Coverage

Out of 7 analysts covering Humana (NYSE:HUM), 2 rate it a “Buy”, 0 “Sell”, while 5 “Hold”. This means 29% are positive. $224 is the highest target while $150 is the lowest. The $187.57 average target is 9.65% above today’s ($171.07) stock price. Humana has been the topic of 15 analyst reports since July 30, 2015 according to StockzIntelligence Inc. RBC Capital Markets maintained the stock with “Outperform” rating in Friday, July 22 report. The firm has “Neutral” rating given on Tuesday, August 16 by Credit Suisse. The stock of Humana Inc (NYSE:HUM) has “Mkt Perform” rating given on Friday, July 22 by FBR Capital. The rating was upgraded by Jefferies to “Buy” on Monday, July 18. As per Friday, July 8, the company rating was downgraded by JP Morgan. Credit Suisse initiated Humana Inc (NYSE:HUM) on Wednesday, December 16 with “Neutral” rating. The rating was maintained by RBC Capital Markets on Monday, November 9 with “Sector Perform”. The firm has “Sector Perform” rating by RBC Capital Markets given on Thursday, October 13. The company was initiated on Wednesday, September 16 by JP Morgan. Barclays Capital maintained the stock with “Equal-Weight” rating in Thursday, August 4 report.

According to Zacks Investment Research, “Humana, Inc. is a health services company that facilitates the delivery of health care services through networks of providers to its medical members. The company’s products are marketed primarily through health maintenance organizations and preferred provider organizations that encourage or require the use of contracted providers. The company also offers various specialty products to employers, including dental, group life and workers’ compensation, and administrative services to those who self-insure their employee health plans.”

Insitutional Activity: The institutional sentiment increased to 1.1 in Q2 2016. Its up 0.10, from 1 in 2016Q1. The ratio improved, as 43 funds sold all Humana Inc shares owned while 172 reduced positions. 59 funds bought stakes while 178 increased positions. They now own 135.64 million shares or 4.91% less from 142.65 million shares in 2016Q1.
Fjarde Ap last reported 0.18% of its portfolio in the stock. Eminence Cap Limited Partnership has invested 2.89% of its portfolio in Humana Inc (NYSE:HUM). Vident Investment Advisory Ltd Liability Corp has 3,910 shares for 0.1% of their US portfolio. Aperio Grp Ltd Company has 67,576 shares for 0.1% of their US portfolio. First Light Asset Limited Liability Corporation, a Minnesota-based fund reported 3,540 shares. Legal General Gp Public Limited Com has 710,510 shares for 0.13% of their US portfolio. State Street Corp has 0.11% invested in the company for 5.85 million shares. Huntington Bank & Trust has invested 0.07% of its portfolio in Humana Inc (NYSE:HUM). Piedmont Advsr Lc has 33,845 shares for 0% of their US portfolio. Sphinx Trading Ltd Partnership has 1,200 shares for 0.43% of their US portfolio. Synovus Financial owns 421 shares or 0% of their US portfolio. Hl Ltd Com accumulated 0.04% or 8,489 shares. New Jersey Better Educational Savings Trust accumulated 2,000 shares or 0.24% of the stock. New York State Common Retirement Fund has 0.1% invested in the company for 389,000 shares. Comerica Bank accumulated 0.06% or 37,615 shares.

Humana Inc. is a health and well-being company. The company has a market cap of $25.66 billion. The Company’s divisions include Retail, Group, Healthcare Services and Other Businesses. It has a 26.3 P/E ratio. The Retail segment consists of Medicare benefits, marketed to individuals or directly via group accounts, as well as individual commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products.

HUM Company Profile

Humana Inc. (Humana), incorporated on July 27, 1964, is a health and well-being company. The Company’s medical and specialty insurance products allow members to access healthcare services primarily through its networks of healthcare providers. The Company’s divisions include Retail, Group, Healthcare Services and Other Businesses. The Retail segment consists of Medicare benefits, marketed to individuals or directly via group accounts, as well as individual commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products. The Group segment consists of employer group commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and voluntary insurance benefits, as well as administrative services only (ASO) products. The Healthcare Services segment includes services offered to its health plan members, as well as to third parties, including pharmacy solutions, well-known provider services, home services and clinical programs, as well as services and capabilities to advance population health. The Other Businesses segment includes its closed-block long-term care insurance policies.

More notable recent Humana Inc (NYSE:HUM) news were published by: Businesswire.com which released: “Humana to Add Iora Health®’s New Primary Care Practices Designed Exclusively …” on October 13, 2016, also Investorplace.com with their article: “3 Stocks to Watch on Thursday: Aetna Inc (AET), Humana Inc (HUM) and Wells …” published on October 13, 2016, Businesswire.com published: “Delaware Valley ACO Renews Value-Based Contract with Humana” on October 11, 2016. More interesting news about Humana Inc (NYSE:HUM) were released by: Businesswire.com and their article: “INVESTOR ALERT: Khang & Khang LLP Announces an Investigation of Humana, Inc …” published on October 14, 2016 as well as Investorplace.com‘s news article titled: “Why Humana Inc (HUM), Fortinet Inc (FTNT) and Telefonaktiebolaget LM Ericsson …” with publication date: October 12, 2016.

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