In this article, we discuss the 5 stocks to buy according to billionaire Andreas Halvorsen’s Viking Global. If you want our detailed analysis of these stocks, go directly to 9 Stocks to Buy According to Billionaire Andreas Halvorsen’s Viking Global.
5. Humana Inc. (NYSE:HUM)
Viking Global’s Stake Value: $1,235,430,000
Percentage of Viking Global’s 13F Portfolio: 3.58%
Number of Hedge Fund Holders: 66
Andreas Halvorsen, via Viking Global, holds 2.6 million shares of Humana Inc. (NYSE:HUM), worth $1.23 billion, representing 3.58% of the fund’s 13F portfolio. Humana Inc. (NYSE:HUM) is one of the largest American for-profit health insurance companies.
Humana (NYSE:HUM) declared on February 17 a $0.7875 per share quarterly dividend, a 12.5% increase from its prior dividend of $0.70. The dividend is payable on April 29, to shareholders of record on March 31.
The Defense Health Agency assigned Humana Inc. (NYSE:HUM) a $121.89 million contract on December 22, where the company will make changes to the Military Health System, as required by the 2017 National Defense Authorization Act.
Truist analyst David MacDonald on January 7 lowered the price target on Humana Inc. (NYSE:HUM) to $445 from $520 and kept a Hold rating on the shares. The analyst says his reduced price target reflects the company’s more conservative Medicare Advantage enrollment growth expectations and a lower assumed earnings multiple.
Humana Inc. (NYSE:HUM) announced its Q4 results on February 2, reporting earnings per share of $1.24, beating estimates by $0.08. The $21.05 billion revenue over the period missed estimates by roughly $231 million.
Among the 924 hedge funds tracked by Insider Monkey in the fourth quarter, 66 funds reported owning stakes in Humana Inc. (NYSE:HUM). Harris Associates is the largest Humana Inc. (NYSE:HUM) stakeholder from Q4, with 4.4 million shares worth $2.05 billion.
Here is what Oakmark Equity and Income Fund has to say about Humana Inc. (NYSE:HUM) in their Q1 2021 investor letter:
“The third new purchase was Humana, the industry leader and near pure play in the fastest growing sector of managed care, Medicare Advantage. Each year, more seniors choose Medicare Advantage over traditional Medicare due to the compelling combination of lower costs and expanded benefits. Humana’s scale advantages and focus on senior care allow the company to make targeted investments in its members’ health, resulting in fewer unnecessary hospitalizations and lower chronic care costs. Much of these savings are then reinvested in the health plan, resulting in a continuously improving customer value proposition. The company’s brand also resonates well in the marketplace and has helped drive double-digit annual membership growth over the past decade—well above the rest of the industry. Further, we believe Humana has a long runway ahead as it benefits from an aging population and continued conversion of the approximately 60% of seniors who are still enrolled in traditional Medicare. Yet Humana’s shares are currently trading at a nearly 20% discount to the S&P 500 earnings multiple, which we believe doesn’t give the company enough credit for its durable competitive advantages and strong secular growth outlook.”
