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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