In a recent filing with the Securities and Exchange Commission, Humana Inc . (NYSE:HUM) disclosed that its Chief Administrative Officer, Timothy S. Huval, executed a significant transaction involving the company’s stock. On December 31, Huval sold 3,703 shares of Humana common stock at an average price of $256.26 per share, amounting to a total of approximately $948,925. According to InvestingPro data, Humana, currently valued at $31.8 billion, appears undervalued based on its Fair Value analysis. Despite this insider sale, management has been actively buying back shares, demonstrating confidence in the company’s future.
Additionally, the filing reported a separate transaction where Huval disposed of 1,070 shares as a gift or charitable donation, with no monetary value received in return. Following these transactions, Huval retains ownership of 8,181 shares of Humana common stock. InvestingPro analysis reveals that Humana maintains a strong financial position with more cash than debt on its balance sheet and carries a "GOOD" overall Financial Health score. Subscribers can access 5 additional exclusive ProTips and comprehensive valuation metrics in the Pro Research Report.
In other recent news, Humana Inc. has seen a series of significant developments. The company appointed Japan Mehta as its new Chief Information Officer, a move aimed at enhancing its technological infrastructure. Mehta’s appointment comes as part of Humana’s initiative to improve clinical decision-making and drive efficiencies through technology.
Furthermore, Humana’s price target was revised by Baird, a financial services firm, reducing it to $270.00 from the previous $374.00, while maintaining a neutral stance on the company’s stock. This adjustment follows a 47% decline in Humana’s shares over the past year. Baird’s valuation is based on an 18 times price-to-earnings (P/E) multiple of Humana’s estimated 2026 earnings per share (EPS) of $15.00.
In addition, the company faces potential earnings exposure from its Humana Honor plans, primarily catering to veterans. Piper Sandler’s analysis suggests these plans could contribute $5.16 of adjusted earnings per share (EPS) in 2024, but also pose a significant earnings risk in 2025.
Furthermore, Susan Diamond, the company’s Chief Financial Officer, is set to step down in January 2025, transitioning into an advisory role through the end of that year. She will be succeeded by Celeste Mellet, currently the CFO at Global Infrastructure Partners.
Finally, BofA Securities upgraded Humana’s stock from Underperform to Neutral and increased the price target to $308, reflecting a more balanced risk-reward scenario. These are recent developments that investors should monitor as they reflect the company’s performance and future prospects.
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