Time to Sell Humana Inc After Today’s Option Traders Bearish Bets?

 Time to Sell Humana Inc After Today's Option Traders Bearish Bets?

In today’s session Humana Inc (HUM) recorded an unusually high (805) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious HUM decrease. With 805 contracts traded and 47624 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: HUM161118P00170000 closed last at: $5.1 or 10.5% down. About 112,176 shares traded hands. Humana Inc (NYSE:HUM) has declined 7.91% since March 29, 2016 and is downtrending. It has underperformed by 11.39% 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 $420.14M for 14.94 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 9.40% above today’s ($171.46) stock price. Humana has been the topic of 15 analyst reports since July 30, 2015 according to StockzIntelligence Inc. As per Thursday, August 4, the company rating was maintained by Barclays Capital. The company was maintained on Tuesday, September 8 by RBC Capital Markets. The rating was maintained by RBC Capital Markets on Friday, July 22 with “Outperform”. The rating was maintained by RBC Capital Markets with “Sector Perform” on Monday, November 9. The rating was initiated by Evercore on Friday, September 23 with “Buy”. The stock of Humana Inc (NYSE:HUM) earned “Overweight” rating by JP Morgan on Wednesday, September 16. The stock of Humana Inc (NYSE:HUM) has “Equal Weight” rating given on Thursday, July 30 by Barclays Capital. The stock of Humana Inc (NYSE:HUM) earned “Buy” rating by Jefferies on Monday, July 18. On Wednesday, December 16 the stock rating was initiated by Credit Suisse with “Neutral”. The firm has “Sector Perform” rating given on Thursday, October 13 by RBC Capital Markets.

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 2016 Q2. 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.
Gardner Lewis Asset Mgmt Lp holds 1.54% or 81,558 shares in its portfolio. State Of Tennessee Treasury Department has 176,951 shares for 0.16% of their US portfolio. Central State Bank Tru last reported 20,122 shares in the company. Moreover, Lombard Odier Asset Mngmt (Europe) Ltd has 0.02% invested in Humana Inc (NYSE:HUM) for 1,807 shares. Evercore Tru Com Na owns 2.57 million shares or 1.48% of their US portfolio. Sii Invs Wi last reported 0.02% of its portfolio in the stock. First Tru Advisors Ltd Partnership accumulated 132,415 shares or 0.08% of the stock. Whitebox Advsr Ltd Liability Company owns 35,007 shares or 0.17% of their US portfolio. American Group Inc accumulated 60,216 shares or 0% of the stock. Greenlight Cap owns 384,300 shares or 1.27% of their US portfolio. Apg Asset Mngmt Nv holds 183,578 shares or 0.06% of its portfolio. Eqis Capital reported 9,551 shares or 0.12% of all its holdings. Tower Rech Ltd Llc (Trc) holds 111 shares or 0% of its portfolio. Oz Management Limited Partnership has invested 2.41% of its portfolio in Humana Inc (NYSE:HUM). Healthcor L P accumulated 2.11% or 214,920 shares.

Humana Inc. is a health and well-being company. The company has a market cap of $25.10 billion. The Company’s divisions include Retail, Group, Healthcare Services and Other Businesses. It has a 26.36 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 recent Humana Inc (NYSE:HUM) news were published by: Prnewswire.com which released: “SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Announces Investigation …” on October 14, 2016. Also Prnewswire.com published the news titled: “SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of …” on October 13, 2016. Businesswire.com‘s news article titled: “Humana Board Declares Payment of Quarterly Dividend to Stockholders” with publication date: October 12, 2016 was also an interesting one.

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