Stock Update (NYSE:AET): California regulator approves Aetna-Humana deal with conditions

[Reuters] – The California Department of Managed Health Care approved Aetna Inc’s acquisition of Humana Inc with conditions that it says will control health care costs in the state, such as minimum premium rate increases in the small group HMO business and about $50 million in community investments. The managed health care department’s director, Shelley Rouillard, has regulatory oversight for the deal in California. Read more on this. Aetna Inc. (AET) , with a current value of $43.03B, opened this morning at $122.00. Looking at the equity, the company’s one day range is $121.89 to $123.57 and has traded between $92.42 and $134.40 over the past year. AET shares are currently priced at 15.08x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 8.54x earnings multiple for the same period. The company pays shareholders $1.00 per share annually in dividends, yielding 0.83%. According to a consensus of 20 analysts, the earnings estimate of $2.12 per share would be $0.07 better than the year-ago quarter and a $0.01 sequential decrease. What we find to be interesting is that the full-year EPS estimate of $8.03 is a $0.32 improvement when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $15.70 Billion. If realized, that would be a 3.77% increase over the year-ago quarter. More recently, Bernstein Initiated AET at Outperform (Jun 16, 2016). Previously, Jefferies downgraded AET from Buy to Hold. The average price target for AET shares by the analysts covering the stock is $139.29, which is 14.17% above where the stock opened this morning. See more in (NYSE:AET) Similar Articles: Stock Update (NYSE:AET): Aetna-Humana tie-up is anti-competitive in Missouri – state regulator Stock Update: Aetna Inc (NYSE:AET) – Aetna Announces Executive Appearance at Upcoming Barclays Global Healthcare Conference 2016 Market Update: Aetna Inc (NYSE:AET) – Aetna’s deal for Humana will push up costs for seniors – think tank
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