Wednesday 30 April 2014

Aetna News

The average sales volume for Aetna Inc. over the last month has been $2.5 million shares per day. Aetna is a major health care and insurance provider and has a market cap upwards of $26 billion. The company’s shares are up 1.9% year on year as of this Wednesday’s close. The company operates as a diversified health care service provider in the U.S. It caters to three main market segments: Health Care, Group Insurance and Large Case Pensions. Aetna stock has a dividend yield of 1.2% and a PE ratio of 13.8. At present 12 analysts rate Aetna stock as a “buy” while 5 grant it with a “hold” rating.

Several analysts most notable of which are TheStreetRatings.com rate Aetna stock as a “buy”. The analysts presume that the strengths of the stock (in comparison to other, competing stocks) temporarily outweigh the fact that the company has had largely lackluster return on equity. Revenues rose by 32.8% in the first quarter of 2014 compared to the previous year and that has aided in increasing the company’s earnings per share.
Furthermore, Trade-Ideas LLC labelled the company as a “roof leaker”. Possibly due to the following reasons; “AET has an average dollar-volume of $160.2 million, it has traded 1.1 million shares on Wednesday April 16th as well as trading 9.35 times the normal volume for the stock at the dame day.” Analysts estimate that AET stock should continue to move higher despite the fact that it has already enjoyed a very nice bump in valuation in the past year. Aetna stock’s demand faces a rise because the company has displayed consistent positive earnings per share over the course of the year. This is only one of the factors that draw potential AET shareholders to invest. Analysts feel that this trend should continue especially considering the fact that AET was the overall victor in the ObamaCare debacle.
The declining stock price may well create a sort of buyer’s vacuum for Aetna Stocks. Investors will look to apply the age-old stock market mantra, “buy low, sell high”. Since the prices of Aetna’s stocks are expected to rise in the near future, observant investors may turn this opportunity into a situation of fortuitous advantage for themselves. The reasons behind the claim that AET stocks will appreciate in value over the course of the coming months is not just based on gross speculation. They are supported by the fact that a glance at AET’s stock readings would show that the influx of voluminous selling will soon be nearing its inevitable end. Once that happens, opportunistic investors will look to buy into Aetna. The earlier they do that, the better it will prove to be for them.

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