NEW YORK (TheStreet) -- Aetna (AET) shares are up 4.34% to $129.45 in morning trading Monday on reports that the company made a takeover bid for fellow health insurer Humana (HUM) for an undisclosed amount on Saturday, according to the Wall Street Journal.
Louisville, KY-based Humana is valued at approximately $30 billion with about 21.5 million total shareholders.
Aetna insures about 46 million people and has a market cap of about $43 billion.
The bid is part of a recent move towards consolidation in the health insurance industry as an unintended consequence of the Affordable Care Act, according to 24/7 Wall St.
Fellow health insurer Anthem (ANTM) made a bid to acquire Cigna (CI) for $53.8 billion, or $184 per share over the weekend, an 18% premium over Cigna's closing price on Friday.
Cigna rejected Anthem's bid on Sunday saying, "The Cigna board has unanimously determined the proposal is inadequate and not in the best interests of Cigna's shareholders." Though the company also said that it would be open to a merger under the right circumstances, according to the Financial Times.
Humana shares are up 0.58% to $203.48 in trading today.
TheStreet Ratings team rates AETNA INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AETNA INC (AET) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and attractive valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins."