Humana Target of Unusually Large Options Trading (NYSE:HUM)

Humana Inc. (NYSE:HUM) saw unusually large options trading on Tuesday. Traders bought 10,990 call options on the stock. This represents an increase of 18% compared to the average daily volume of 9,296 call options.

Humana Trading Up 8.0%

HUM opened at $197.17 on Wednesday. Humana has a one year low of $163.11 and a one year high of $315.35. The stock has a market capitalization of $23.67 billion, a PE ratio of 20.08, a P/E/G ratio of 1.90 and a beta of 0.44. The business’s 50 day moving average price is $180.49 and its 200 day moving average price is $233.91. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.00 and a current ratio of 2.00.

Humana (NYSE:HUM) last released its quarterly earnings data on Wednesday, February 11th. The insurance provider reported ($3.96) EPS for the quarter, beating analysts’ consensus estimates of ($4.01) by $0.05. Humana had a return on equity of 11.43% and a net margin of 0.92%.The firm had revenue of $32.64 billion for the quarter, compared to analysts’ expectations of $32.08 billion. During the same period in the prior year, the firm posted ($2.16) earnings per share. The firm’s quarterly revenue was up 11.3% on a year-over-year basis. Humana has set its FY 2026 guidance at 9.000-9.000 EPS. As a group, equities research analysts expect that Humana will post 16.47 EPS for the current year.

Humana Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, March 27th will be issued a $0.885 dividend. The ex-dividend date is Friday, March 27th. This represents a $3.54 dividend on an annualized basis and a yield of 1.8%. Humana’s dividend payout ratio is currently 36.05%.

Key Stories Impacting Humana

Here are the key news stories impacting Humana this week:

• Positive Sentiment: CMS finalized a 2.48% net average increase to 2027 Medicare Advantage payments — far above the 0.09% proposed in January — reducing reimbursement risk and adding an estimated multi-billion-dollar tailwind for private MA plans, directly benefiting Humana’s core Medicare Advantage business. Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers
• Positive Sentiment: Sector-wide relief rally led by major peers (UnitedHealth, CVS, Elevance) lifted Humana as markets priced in stronger 2027 reimbursement and lower regulatory uncertainty for managed-care operators. UnitedHealth Rockets 11%, Humana Climbs 9% as Medicare Advantage Rate Decision Crushes Regulatory Fears
• Positive Sentiment: Unusually large call-option activity: traders bought ~10,990 HUM calls (≈18% above typical volume), signaling short-term bullish positioning that can amplify upside and intraday momentum.
• Neutral Sentiment: Wells Fargo raised its Humana price target from $206 to $227 but kept an “equal weight” rating — a modest positive to the target but not a catalyst of a stronger buy recommendation. Wells Fargo raises Humana price target to $227
• Negative Sentiment: Wolfe Research trimmed its price target from $325 to $250 while maintaining an “outperform” rating — a mixed signal that reduces some upside expectations from prior, higher forecasts. Wolfe adjusts price target on Humana to $250 from $325, maintains outperform

Wall Street Analyst Weigh In

HUM has been the subject of several research reports. JPMorgan Chase & Co. cut their price objective on Humana from $274.00 to $180.00 and set a “neutral” rating for the company in a research note on Friday, February 13th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Humana in a research note on Thursday, January 22nd. Truist Financial cut their price objective on Humana from $285.00 to $200.00 and set a “hold” rating for the company in a research note on Tuesday, February 17th. Cantor Fitzgerald cut their price objective on Humana from $290.00 to $201.00 and set a “neutral” rating for the company in a research note on Thursday, February 12th. Finally, Jefferies Financial Group cut their price objective on Humana from $310.00 to $235.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $223.13.

Insider Buying and Selling

In other news, insider Sanjay K. Shetty acquired 810 shares of the business’s stock in a transaction on Monday, February 23rd. The stock was bought at an average cost of $185.21 per share, for a total transaction of $150,020.10. Following the purchase, the insider owned 11,657 shares in the company, valued at approximately $2,158,992.97. This represents a 7.47% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Montag A & Associates Inc. lifted its holdings in Humana by 1,880.0% in the fourth quarter. Montag A & Associates Inc. now owns 99 shares of the insurance provider’s stock valued at $25,000 after acquiring an additional 94 shares during the last quarter. CoreCap Advisors LLC lifted its holdings in Humana by 54.4% in the fourth quarter. CoreCap Advisors LLC now owns 105 shares of the insurance provider’s stock valued at $27,000 after acquiring an additional 37 shares during the last quarter. Fideuram Asset Management Ireland dac acquired a new position in Humana during the fourth quarter worth $27,000. Reflection Asset Management acquired a new position in Humana during the fourth quarter worth $29,000. Finally, Rosenberg Matthew Hamilton lifted its stake in Humana by 136.0% during the fourth quarter. Rosenberg Matthew Hamilton now owns 118 shares of the insurance provider’s stock worth $30,000 after purchasing an additional 68 shares in the last quarter. 92.38% of the stock is currently owned by institutional investors and hedge funds.

About Humana

Humana Inc (NYSE: HUM) is a health insurance company headquartered in Louisville, Kentucky, that primarily serves individuals and groups across the United States. The company is best known for its Medicare business, offering Medicare Advantage plans and prescription drug (Part D) coverage, alongside a range of commercial and employer-sponsored group health plans. Humana’s products are designed to cover medical, behavioral health and pharmacy needs for members, with particular emphasis on seniors and Medicare-eligible populations.

In addition to traditional insurance products, Humana provides care-management and wellness services intended to support chronic-condition management, preventive care and care coordination.