Notable Price Action: Is Buying Aetna Inc Here a Winning Strategy?

Notable Price Action: Is Buying Aetna Inc Here a Winning Strategy?

The stock of Aetna Inc (NYSE:AET) hit a new 52-week high and has $142.17 target or 8.00% above today’s $131.64 share price. The 8 months bullish chart indicates low risk for the $45.77B company. The 1-year high was reported on Nov, 29 by If the $142.17 price target is reached, the company will be worth $3.66B more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 1.34 million shares traded hands. Aetna Inc (NYSE:AET) has risen 10.90% since April 26, 2016 and is uptrending. It has outperformed by 5.64% the S&P500.

Analysts await Aetna Inc (NYSE:AET) to report earnings on January, 31 before the open. They expect $1.45 EPS, up 5.84% or $0.08 from last year’s $1.37 per share. AET’s profit will be $504.15 million for 22.70 P/E if the $1.45 EPS becomes a reality. After $2.07 actual EPS reported by Aetna Inc for the previous quarter, Wall Street now forecasts -29.95% 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. $162.0 is the highest target while $12 is the lowest. The $110.33 average target is -16.19% below today’s ($131.64) stock price. Aetna has been the topic of 19 analyst reports since July 30, 2015 according to StockzIntelligence Inc. As per Wednesday, December 16, the company rating was initiated by Credit Suisse. The stock of Aetna Inc (NYSE:AET) earned “Hold” rating by Jefferies on Tuesday, February 2. The firm has “Buy” rating given on Tuesday, August 4 by Sterne Agee CRT. Cleveland initiated Aetna Inc (NYSE:AET) on Friday, April 8 with “Neutral” rating. As per Friday, September 23, the company rating was initiated by Evercore. As per Monday, November 14, the company rating was downgraded by Bernstein. The stock has “Neutral” rating given by Wedbush on Tuesday, February 2. The stock of Aetna Inc (NYSE:AET) has “Overweight” rating given on Wednesday, September 16 by JP Morgan. The stock of Aetna Inc (NYSE:AET) earned “Outperform” rating by Credit Suisse on Friday, November 11. On Friday, January 8 the stock rating was downgraded by Jefferies to “Hold”.

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 decreased to 0.75 in 2016 Q2. Its down 0.08, from 0.83 in 2016Q1. The ratio is negative, 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.
Genesee Valley Trust Co last reported 1,660 shares in the company. State Of New Jersey Common Pension Fund D holds 580,120 shares or 0.32% of its portfolio. Soros Fund Mgmt Lc has 0.07% invested in the company for 28,104 shares. Wells Fargo & Mn accumulated 0.09% or 1.87M shares. Brown Brothers Harriman & Commerce has 0% invested in the company for 5,304 shares. Blackrock Group Ltd has 0.3% invested in the company for 4.66M shares. Tdam Usa Inc holds 0.02% or 3,280 shares in its portfolio. The New Jersey-based Seabridge Invest Advsrs Limited Liability Company has invested 0.02% in Aetna Inc (NYSE:AET). Sivik Glob Lc last reported 30,000 shares in the company. Eaton Vance Mgmt has 76,103 shares for 0.03% of their US portfolio. Samlyn Limited Liability Corp, a New York-based fund reported 679,170 shares. Aqr Capital Limited Liability has 1.78M shares for 0.38% of their US portfolio. Blackrock Institutional Commerce Na holds 0.18% of its portfolio in Aetna Inc (NYSE:AET) for 9.21M shares. Morgan Stanley accumulated 1.22 million shares or 0.05% of the stock. Moreover, Capital One National Association has 0.07% invested in Aetna Inc (NYSE:AET) for 7,421 shares.

Insider Transactions: Since August 22, 2016, the stock had 0 buys, and 5 sales for $12.76 million net activity. The insider Coye Molly Joel sold 862 shares worth $100,820. Another trade for 45,328 shares valued at $5.45M was sold by GUERTIN SHAWN M. The insider SOISTMAN FRANCIS S JR sold $1.00 million. 7,100 shares were sold by GARTEN JEFFREY E, worth $827,214 on Wednesday, September 7. $5.38M worth of shares were sold by Lynch Karen S on Friday, November 11.

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.

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