NEW YORK (TheStreet) -- Humana (HUM) shares are up 0.35% to $203.02 in morning trading on Monday after the health insurer reportedly received a takeover bid from Aetna (AET) over the weekend, 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, 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.
Aetna shares are up 4.11% to $129.17 in trading today.
TheStreet Ratings team rates HUMANA INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HUMANA INC (HUM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow."