Humana Rises After Self Imposing Quiet Period

NEW YORK (TheStreet) -- Shares of Humana  (HUM) are rising this morning after the company, which has recently been the subject of stories regarding its takeover potential, announced it will be in a quiet period until it reports earnings. Additionally, a report indicated that the company cancelled out of a planned conference presentation. Conference cancellations often lead investors to speculate whether a company is engaged in merger or acquisition talks.

WHAT'S NEW: In a regulatory filing earlier this morning, Humana stated that after receiving questions from analysts and investors "regarding the potential for the company to participate in industry consolidation," it will observe a "quiet period" beginning today, June 8, and lasting until the company's Q2 earnings report on July 29. U.S. securities laws do not define the term "quiet period," however, a quiet period extends from the time a company files a registration statement with the SEC until SEC staff declare the registration statement is "effective," the SEC states on its website. During such an SEC quiet period, federal laws limit what information a company and related parties can release to the public.

WHAT'S NOTABLE: Humana added that its long-standing policy is not to comment on "rumors or speculation regarding possible merger activity." The health insurer cancelled its presentation at a Goldman Sachs conference scheduled for Wednesday, June 10, according to Bloomberg. The Wall Street Journal and others have reported previously that Humana was considering a possible sale, with Aetna  (AET) and Cigna  (CI) as possible suitors.

PRICE ACTION: Shares of Humana rose $2.83, or 1.3%, to $217.21 in early trading, while Cigna and Aetna were both fractionally higher.

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