Aetna Inc (NYSE:AET) Struggling Before ObamaCare
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.
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.