After Today’s Bullish Options Activity, Is Aetna Inc’s Near-Term Analysis Positive?

 After Today's Bullish Options Activity, Is Aetna Inc's Near Term Analysis Positive?

In today’s session Aetna Inc (AET) registered an unusually high (820) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the December, 2016 call, expecting serious AET increase. With 820 contracts traded and 2094 open interest for the Dec, 16 contract, it seems this is a quite bullish bet. The option with symbol: AET161216C00133000 closed last at: $3.15 or 101.9% up. About 251,401 shares traded hands. Aetna Inc (NYSE:AET) has risen 14.14% since April 28, 2016 and is uptrending. It has outperformed by 8.22% 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 $504.24M for 22.76 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 -16.43% below today’s ($132.02) stock price. Aetna has been the topic of 19 analyst reports since July 30, 2015 according to StockzIntelligence Inc. Evercore initiated it with “Buy” rating and $128 target price in Friday, September 23 report. The firm has “Outperform” rating by RBC Capital Markets given on Tuesday, February 2. The stock of Aetna Inc (NYSE:AET) earned “Hold” rating by Oppenheimer on Wednesday, August 5. The firm has “Peer Perform” rating by Wolfe Research given on Thursday, July 21. On Tuesday, August 4 the stock rating was maintained by Sterne Agee CRT with “Buy”. The stock has “Hold” rating given by Jefferies on Tuesday, February 2. Wedbush maintained the stock with “Neutral” rating in Tuesday, February 2 report. Cleveland initiated the stock with “Neutral” rating in Friday, April 8 report. The stock of Aetna Inc (NYSE:AET) has “Neutral” rating given on Wednesday, December 16 by Credit Suisse. The rating was upgraded by RBC Capital Markets on Tuesday, September 8 to “Outperform”.

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 Q2 2016. 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.
State Teachers Retirement System holds 659,467 shares or 0.21% of its portfolio. The Missouri-based Monetary Gp has invested 1.22% in Aetna Inc (NYSE:AET). Gam Ag holds 109,369 shares or 0.21% of its portfolio. Firstmerit Bancshares N A Trustee holds 0.02% or 1,643 shares in its portfolio. Commonwealth Of Pennsylvania Pub School Empls Retrmt holds 0.02% of its portfolio in Aetna Inc (NYSE:AET) for 10,441 shares. Tompkins owns 2,580 shares or 0.09% of their US portfolio. Zurcher Kantonalbank (Zurich Cantonalbank) holds 0.4% of its portfolio in Aetna Inc (NYSE:AET) for 251,873 shares. Roosevelt Investment Group Inc Inc has 0.02% invested in the company for 1,822 shares. Pillar Pacific Cap Mgmt Limited Liability Company holds 1,767 shares or 0.04% of its portfolio. Citigroup has 177,471 shares for 0.02% of their US portfolio. Davy Asset Mngmt Limited, a Ireland-based fund reported 16,353 shares. Liberty Mutual Grp Inc Asset Mngmt Inc last reported 0.11% of its portfolio in the stock. State Board Of Administration Of Florida Retirement owns 522,241 shares or 0.2% of their US portfolio. Gemmer Asset Limited Liability Company has 0.03% invested in the company for 411 shares. Nordea Invest Ab owns 1.74M shares or 0.62% of their US portfolio.

Insider Transactions: Since August 22, 2016, the stock had 0 insider purchases, and 5 selling transactions for $12.76 million net activity. Another trade for 862 shares valued at $100,820 was sold by Coye Molly Joel. Shares for $5.38M were sold by Lynch Karen S. GARTEN JEFFREY E also sold $827,214 worth of Aetna Inc (NYSE:AET) on Wednesday, September 7. On Monday, November 7 SOISTMAN FRANCIS S JR sold $1.00M worth of the stock or 9,150 shares. The insider GUERTIN SHAWN M sold $5.45 million.

Aetna Inc. is a diversified healthcare benefits company. The company has a market cap of $45.91 billion. The Firm operates through three divisions: Health Care, Group Insurance and Large Case Pensions. It has a 19.05 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.

Another recent and important Aetna Inc (NYSE:AET) news was published by Bizjournals.com which published an article titled: “Aetna calls Obamacare argument in Humana merger case a ‘sideshow'” on November 29, 2016.

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