Is Humana Inc (HUM) A Good Buy Now As It Faces Takeover Proposal From Aetna Inc (AET)?

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How have hedgies been trading Humana Inc (NYSE:HUM)?

Heading into the second quarter, a total of 46 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of -6% from a quarter earlier. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their holdings while there were other hedge fund managers who opted to sell out of their stakes in the company.

According to Insider Monkey’s database, Larry Robbins‘ Glenview Capital had the largest position in Humana Inc (NYSE:HUM), with 5 million shares worth close to $893 million, corresponding to 4.1% of its total 13F portfolio. The next most bullish hedge fund manager is AQR Capital Management, led by Cliff Asness, holding 1.9 million shares worth $344.5 million, which accounts for 0.8% of its 13F portfolio. Other bullish hedge fund managers on the stock include Andreas Halvorsen‘s Viking Global, Doug Silverman and Alexander Klabin’s Senator Investment Group, and David Stemerman’s Conatus Capital Management.

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Heading into the second quarter, as pointed out above, Humana Inc (NYSE:HUM) has faced falling interest from many hedge funds we track. There are some hedge fund managers who moved out of the stock completely in the first quarter. Stephen Mandel‘s Lone Pine Capital leads the way, selling around 1.9 million shares which were valued at $274.6 million at the end of the fourth quarter. Following Lone Pine Capital is Benjamin A. Smith of Laurion Capital Management, as Smith had sold 1.5 million shares which were valued at $215.5 million. These behaviors on the stock should definitely be taken into consideration.

While the stock has done pretty well so far this year, negative hedge fund sentiment and insider sentiment makes it difficult for us to recommend a buy on this stock, with the further appreciation of its shares factoring against it. We don’t recommend buying the stock at the moment, even in light of the takeover rumors.

Disclosure: None

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