Aetna Inc (NYSE:AET) Struggling Before ObamaCare

Posted by Lacee Page September 30, 2013 0 Comment 1637 views

On Friday, Aetna Inc (NYSE:AET) declared its quarterly-dividend. Investors on record as of 10 October will be eligible for a dividend of $0.20/share. This represents an annualized dividend of $0.80 on a 1.23% yield.

Another stakeholder friendly move from the health insurer-Aetna Inc (NYSE:AET) has now authorized upto $750M in share-buybacks. As of 20 September, this authorization is in addition to the almost $326M that are still under the company’s earlier authorization. The company plans on buying back shares from the open market at frequent intervals.

Over the last year, Aetna Inc (NYSE:AET)’s revenue has risen but its profits have suffered. This is because the consumers have started moving back to their earlier healthcare usage patterns even as the U.S economy moves onto a healthier phase. The company reported a rise of 17% in its Q2 earnings, in July. This was attributed to a rise in memberships that has had a positive impact on the growth of the company.

Friday’s trading

In Friday’s trading session, Aetna Inc (NYSE:AET) stock dropped by 0.46%. The opening price of the shares was $64.68 which rose to an intraday high of $64.78 and dropped to a close of $64.48. Approximately 1.63 million shares were traded on Friday and the average volume of shares traded over a 30 day period was $2.60 million. The 52-week low of the shares was $39.33 and the 52-week high was $69.19. The company has a market cap of $23.99 billion.

About the company

Aetna Inc (NYSE:AET) is a diversified healthcare-benefits company. It offers a variety of consumer-directed and traditional health-insurance products and services, such as pharmacy, medical, dental, group life, behavioral health and disability plans, Medicaid healthcare-management services, medical management-capabilities and health information exchange-technology services. Aetna Inc (NYSE:AET)’s has three business segments: Health Care, Large Case Pensions and Group Insurance.

About Lacee Page

Lacee Page is our White House and political campaign reporter. Lacee also covers justice and national law enforcement issues and congressional reporter focusing on the outputs of the legislative process: government spending, agency regulation and congressional oversight. Lacee received a national Edward R. Murrow for spot news award and the regional Associated Press award for best newscast. Lacee attended Riverview High School near Coshocton, and graduated from Ashland College in Ashland, Ohio with a Bachelor of Arts degree in Communications.

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