Market Update: Aetna Inc (NYSE:AET) – Aetna’s deal for Humana will push up costs for seniors – think tank

[Reuters] – Aetna Inc’s plan to buy smaller insurer Humana Inc for $31 billion will mean seniors will pay higher Medicare Advantage premiums, according to a new report by the think tank Center for American Progress (CAP). Aetna’s proposed deal for Humana would combine Aetna’s 7 percent of the Medicare Advantage market with Humana’s 19 percent, and make it the largest provider, according to CAP, which was founded by John Podesta who worked in the White House under Presidents Bill Clinton and Barack Obama. Read more on this. Aetna Inc. (AET) , valued at $36.82B, started the session at $104.59. A quick look at the market, the company’s stock traded between $103.71 and $106.22 with a one year range of $90.20 to $134.40. AET shares are currently priced at 13.80x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 13.30x earnings multiple. And for those looking to make a return holding the stock, the company pays shareholders $1.00 per share annually in dividends, yielding 0.95%. In a review of the consensus earnings estimate this quarter, 20 sell-side analysts are looking at $1.21 per share, which would be $0.01 worse than the year-ago quarter and a $0.11 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $7.54, which would be a $0.84 better when compared to the last year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $14.93 Billion. If realized, that would be a 1.08% increase over the year-ago quarter. In terms of ratings, Jefferies downgraded AET from Buy to Hold (Jan 8, 2016). Previously, Cantor Fitzgerald upgraded AET from Hold to Buy. With the above information in mind, readers should note that the average price target is $138.00, which is 31.94% above where the stock opened this morning. See more in (NYSE:AET) Similar Articles: Stock Update (NYSE:AET): Aetna Announces Shareholder Approval in Connection with Proposed Humana Acquisition Market Update: Aetna Inc (NYSE:AET) – U.S. justice department seeks more information on Aetna, Humana deal Market Update (NYSE:AET): Aetna CEO says antitrust process underway in Humana deal