How Will Anthem (ANTM) Stock React to Antitrust Lawsuit?
Bloomberg News
NEW YORK (TheStreet) -- Shares of Anthem (ANTM) - Get Report are up 0.63% to $136.33 after the Justice Department filed an antitrust lawsuit this morning against the company and its proposed acquisition of Cigna (CI), Bloomberg reports.
The Indianapolis-based health benefit company would acquire Cigna for $48 billion, which the companies agreed to in late 2015.
Anthem's acquisition of Cigna came under fire from antitrust regulators earlier this year, with speculation of an antitrust block growing this week after reports that the Justice Department was readying a suit against the companies.
Antitrust officials are concerned that the deal - alongside another proposed healthcare merger of Aetna (AET) and Humana (HUM) - would decrease competition in the healthcare sector, as the two combined entities and UnitedHealth (UNH) would be the only companies in the market.
Shares of Cigna are down 0.23% to $132.81 this morning.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: ANTM
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.