Shares of Humana Inc. (HUM) are rallying, up 30 points, or nearly 17 percent on Friday midday trading. The catalyst for the surge is a Wall Street Journal report saying the health insurer is considering putting itself up for sale. The publication quotes sources as saying Humana has received takeover interest and is working with Goldman Sachs (GS) as its advisor. Possible bidders include Aetna Inc. (AET) and Cigna Corp. (CI).
On valuation measures, Humana Inc. shares are currently priced at 26.79x this year’s forecasted earnings. Ticker has a t-12 price/sales ratio of 0.53. EPS for the same period registers at $7.81.
As for passive income investors, the $31.35 billion market cap Louisville, Kentucky-based company pays stockholders $1.16 per share annually in dividends, yielding 0.70%.