What Next for Aetna Inc Stock After Today’s Bearish Options Activity?

 What Next for Aetna Inc Stock After Today's Bearish Options Activity?

In today’s session Aetna Inc (AET) recorded an unusually high (201) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious AET decrease. With 201 contracts traded and 8894 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: AET161021P00114000 closed last at: $1.5 or 7.4% down. About 302,677 shares traded hands. Aetna Inc (NYSE:AET) has risen 5.49% since March 4, 2016 and is uptrending. It has underperformed by 2.55% the S&P500.

Analysts await Aetna Inc (NYSE:AET) to report earnings on October, 27 before the open. They expect $2.03 earnings per share, up 6.84% or $0.13 from last year’s $1.9 per share. AET’s profit will be $705.98M for 13.96 P/E if the $2.03 EPS becomes a reality. After $2.21 actual earnings per share reported by Aetna Inc for the previous quarter, Wall Street now forecasts -8.14% negative EPS growth.

Aetna Inc (NYSE:AET) Ratings Coverage

Out of 11 analysts covering Aetna (NYSE:AET), 6 rate it a “Buy”, 0 “Sell”, while 5 “Hold”. This means 55% are positive. Aetna has been the topic of 17 analyst reports since July 30, 2015 according to StockzIntelligence Inc. Wedbush maintained Aetna Inc (NYSE:AET) on Tuesday, February 2 with “Neutral” rating. RBC Capital Markets maintained it with “Outperform” rating and $140 target price in Tuesday, February 2 report. Bank of America upgraded the stock to “Buy” rating in Thursday, July 30 report. The rating was initiated by Bernstein on Thursday, June 16 with “Outperform”. The company was initiated on Friday, April 8 by Cleveland. The rating was maintained by RBC Capital Markets with “Outperform” on Friday, April 29. The firm has “Hold” rating given on Wednesday, August 5 by Oppenheimer. On Friday, September 23 the stock rating was initiated by Evercore with “Buy”. The rating was maintained by Jefferies on Tuesday, February 2 with “Hold”. The firm has “Overweight” rating by JP Morgan given on Wednesday, September 16.

According to Zacks Investment Research, “Aetna Inc. is one of the nation’s largest health benefits companies and one of the nation’s largest insurance and financial services organizations. Aetna provides these benefits to employer and plan sponsor customers in all 50 states, ranging from large multisite national accounts to middle-market and small-employer groups. Its products include the full range of health insurance, including dental and pharmacy benefits, from HMO and POS to PPO and indemnity, as well as group insurance products such as life, disability and long-term care insurance.”

Insitutional Activity: The institutional sentiment increased to 0.83 in Q2 2016. Its up 0.01, from 0.82 in 2016Q1. The ratio is positive, as 50 funds sold all Aetna Inc shares owned while 294 reduced positions. 47 funds bought stakes while 238 increased positions. They now own 313.20 million shares or 5.61% less from 331.82 million shares in 2016Q1.
Nadler Financial Gp last reported 0.4% of its portfolio in the stock. Art Advsrs Ltd Com holds 0.04% or 6,295 shares in its portfolio. New Mountain Vantage Advisers Llc last reported 766,570 shares in the company. Ledyard Bank has 766 shares for 0.02% of their US portfolio. Nikko Asset Management Americas last reported 4,500 shares in the company. Sigma Planning Corporation holds 0.04% or 2,782 shares in its portfolio. Qs Invsts Ltd Liability Co owns 292,551 shares or 0.3% of their US portfolio. The United Kingdom-based Tt has invested 1.17% in Aetna Inc (NYSE:AET). Pzena Invest Mngmt Lc has 155,102 shares for 0.12% of their US portfolio. Cetera Advsr Ltd Liability Corp holds 8,489 shares or 0.08% of its portfolio. Conning Incorporated owns 8,420 shares or 0.04% of their US portfolio. Pictet Asset Management Limited holds 458,453 shares or 0.2% of its portfolio. Amalgamated Bancorp has 20,966 shares for 0.14% of their US portfolio. Gemmer Asset Management Limited Liability holds 0.03% of its portfolio in Aetna Inc (NYSE:AET) for 411 shares. Guardian Cap Advsrs L P owns 3,748 shares or 0.08% of their US portfolio.

Insider Transactions: Since May 2, 2016, the stock had 0 insider purchases, and 4 sales for $14.58 million net activity. McCarthy Margaret M also sold $4.48M worth of Aetna Inc (NYSE:AET) shares. Another trade for 7,100 shares valued at $827,214 was sold by GARTEN JEFFREY E. The insider GUERTIN SHAWN M sold $5.45M. Bertolini Mark T sold $3.82M worth of stock or 33,510 shares.

Aetna Inc. is a diversified healthcare benefits company. The company has a market cap of $39.42 billion. The Firm operates through three divisions: Health Care, Group Insurance and Large Case Pensions. It has a 16.63 P/E ratio. The Health Care segment’s services and products consist of medical, pharmacy benefit management services, dental, behavioral health and vision plans offered on both an insured basis and an employer-funded, or administrative services contact, basis and emerging businesses services and products, such as accountable care solutions .

AET Company Profile

Aetna Inc., incorporated on December 20, 1982, is a diversified healthcare benefits company. The Firm offers a range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, medical management capabilities, Medicaid healthcare management services, Medicare Advantage and Medicare supplement plans, workers’ compensation administrative services and health information technology services and products, such as accountable care solutions (ACS). The Firm operates through three divisions: Health Care, Group Insurance and Large Case Pensions. The Company’s clients include employer groups, individuals, college students, part-time and hourly workers, health plans, healthcare providers (providers), Governmental units, Government-sponsored plans, labor groups and expatriates.

More news for Aetna Inc (NYSE:AET) were recently published by: Bloomberg.com, which released: “Aetna Will Subsidize Apple Watch in First U.S. Insurer Deal” on September 27, 2016. Courant.com‘s article titled: “Aetna Says Government Lawyers Should Be Sanctioned” and published on October 04, 2016 is yet another important article.

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