Humana (HUM) Stock Drops on Concerns About Aetna Merger
Bloomberg News
NEW YORK (TheStreet) -- Shares of Humana (HUM) - Get Report are plunging 7.73% to $166.07 on heavy trading volume Thursday afternoon following a report that antitrust regulators will discuss "significant concerns" surrounding its planned merger with rival health insurer Aetna (AET).
Aetna stock is down 2.05% to $117.77 this afternoon.
Officials from Humana and Aetna will meet with Department of Justice reviewers on Friday regarding their planned merger, according to an article by antitrust trade publication MLex, Reuters reports.
The investigators are most interested in whether the deal will restrain consumer choices for Medicare Advantage health plans for the elderly.
About 3.94 million shares of Humana have been traded so far today, well above its average trading volume of roughly 1.48 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Humana's strengths such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: HUM
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 article's author.