Aetna Inc
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Earnings ReportUNH Stock Up 4.1% on Solid Q3 2018 Results, View Up
UnitedHealth Group (UNH) released its Q3 2018 earnings today. UNH reported sales of $56.6 billion, up ~12.4% on a year-over-year basis.
HealthcareCVS Gets Department of Justice Approval for Aetna Deal
On October 10, the US Department of Justice gave preliminary approval to the $69 billion deal between CVS Health (CVS) and Aetna (AET).
Earnings ReportAnalyst Ratings for UnitedHealth before Q3 2018 Earnings
Of the 24 analysts covering UNH stock, ten have recommended a “strong buy,” and 13 have recommended a “buy.”
Company & Industry OverviewsHow Does UNH’s Valuation Look in October?
UnitedHealth Group is a leading managed healthcare firm in the United States.
Company & Industry OverviewsJefferies Raised Its Target Price on UNH Stock: What’s the Outlook?
UnitedHealth Group (UNH) is one of the largest Fortune 500 companies.
HealthcareWall Street Expects 9% Upside Potential for UnitedHealth Stock
As of September 24, ten of the 24 analysts covering UNH stock have given it a “strong buy” recommendation.
Company & Industry OverviewsUnitedHealth Group Goes Ex-Dividend Today
UnitedHealth Group (UNH) has announced that its board of directors has authorized a cash dividend of $0.90 per share.
Company & Industry OverviewsAnalysts Raise Target Prices on UNH Stock in September
Of the 23 analysts covering UNH stock, all of them have “buy” or “strong buy” recommendations for UnitedHealth Group.
Company & Industry OverviewsUnitedHealth Group Stock at 52-Week High, Up 22% Year-to-Date
UnitedHealth Group (UNH) stock registered its 52-week high of $270.17 last week on August 30.
Earnings ReportUnitedHealth Group Reports Q2 2018 Earnings, Stock Down 1.9%
Today, UnitedHealth Group (UNH) reported its earnings results for the second quarter of fiscal 2018. The company reported sales of $56.1 billion, up ~12% on a (year-over-year) basis.
Company & Industry OverviewsUNH’s Stock Price Performance in June
On June 28, UnitedHealth Group (UNH) ended the trading day at $244.90, ~4.6% lower than its 52-week low of $183.86 reached on July 18, 2017.
Company & Industry OverviewsCVS Health Launches Prescription Delivery Service, Stock Jumps ~5%
Today, CVS Health, the leading pharmacy benefit managers, is up ~5% after announcing the launch of its drug delivery service from all of its US locations.
Company & Industry OverviewsCVS Health versus Walgreens: Comparing Pharmacy Giants
Around 70% of the US population lives within three miles of a CVS store, while more than 75% of the population lives within five miles of a Walgreens store.
Earnings ReportRecommendations for UNH Stock after Its 1Q18 Results: All ‘Buy’
Of the 22 analysts tracking UNH stock on April 19, 50% rated it as a “strong buy,” and the remaining 50% of these analysts rated the company as a “buy.”
Earnings ReportUnitedHealth Group Posted Strong 1Q18 Performance
On April 17, UnitedHealth Group (UNH) reported its 1Q18 earnings results. UNH stock rose ~3.6% from its April 16 closing price.
Earnings ReportHow Is UNH’s Optum Business Positioned in the Industry?
UnitedHealth Group is, by revenue, the largest healthcare company in the world.
Earnings ReportAnalysts’ Recommendations for UnitedHealth Group
UnitedHealth Group is the world’s largest healthcare company in terms of revenue. In fiscal 2017, it generated revenue of $201 billion.
Company & Industry OverviewsWalmart Eyes Growth Avenues—Healthcare Could Be One
CNBC has reported that Walmart is looking to acquire PillPack, an online pharmacy startup, for less than $1 billion.
Company & Industry OverviewsUnitedHealth Group’s Recent Stock Performance
On March 14, 2018, UnitedHealth Group (UNH) ended trading at $225.38 per share.
Company & Industry OverviewsUnitedHealth Group’s Dividend Payment of $0.75 Payable March 20
On February 14, UnitedHealth Group authorized a quarterly dividend payment of $0.75 to shareholders of record on March 9, 2018.
HealthcareCigna Expects to Report Robust Revenue Growth in the Future
Cigna (CI) has projected its expected annual revenue growth rate in the range of 6%–to 8% from 2017 to 2021, assuming completion of the Express Scripts acquisition.
HealthcareCould Cigna–Express Scripts Deal Be Earnings Accretive in Year 1?
Cigna (CI) expects the acquisition of Express Scripts to boost the EPS of the combined company in the double digits in the first full year.
HealthcareCigna Expects Acquisition of Express Scripts by End of 2018
On March 7, 2018, Cigna (CI) announced that it has entered into a definitive agreement to acquire Express Scripts (ESRX) for $67 billion.
ConsumerWalgreens and AmerisourceBergen End Talks without a Deal
According to a report by CNBC, talks between Walgreens Boots Alliance (WBA) and AmerisourceBergen Corp. (ABC) ended without an agreement.
Earnings ReportAnalysts’ Recommendations for UNH, Pre-4Q17 Earnings Announcement
Headquartered in Minnesota, Fortune 500 company UnitedHealth Group (UNH) is the world’s largest healthcare company based on revenue, which totaled ~$184 billion for UNH in fiscal 2016.
Company & Industry OverviewsInsys Has Legal Issues Galore
In December 2016, the U.S. Attorney’s office for the District of Massachusetts issued an indictment against six former Insys (INSY) employees.
HealthcareA Look at the Financial Details of the CVS-Aetna Deal
CVS is paying more than 11 times the trailing 12-month EBITDA for Aetna.
HealthcareHow CVS Could Benefit from Aetna Merger
CVS Health (CVS) announced its intention to acquire Aetna (AET) for $207 per share, or $69 billion.
ConsumerDeal of the Year: CVS to Buy Aetna for $69 Billion
CVS Health (CVS), America’s largest pharmacy chain, announced a $69 billion deal to purchase Aetna (AET), the country’s third-largest insurance company, on December 3, 2017.
ConsumerCVS Health May Vertically Integrate Further by Acquiring Aetna
With trailing 12-month sales of $181 billion, CVS Health is a pharmacy colossus. However, its focus seems to be on becoming more than just a retail pharmacy chain.
Company & Industry OverviewsAetna: S&P 500’s Top Gainer on October 26
On October 26, Aetna started on a stronger note and rose to record high price levels. It was the S&P 500’s top gainer on October 26, 2017.
MiscellaneousA Look at Aetna’s Dividend Yield Path
Aetna (AET) recorded a 5.0% rise in revenue in 2016 and a 4.0% rise in 2015.
Company & Industry OverviewsWhat Are Sage Therapeutics’ Receptor-Based Products?
Sage Therapeutics (SAGE) is focused on the development of the products for the treatment of life-threatening central nervous system (or CNS) disorders.
Company & Industry OverviewsHow Medtronic Is Accelerating Its Economic Value Growth Strategy
Medtronic’s (MDT) Hospital Solutions segment registered double-digit growth in fiscal 1Q18.
Company & Industry OverviewsWellCare Health Plans Expected to Report Solid Rise in EPS in 2017
WellCare Health Plans has updated its earnings per share guidance from the previously estimated range of $6.00–$6.25 to the new range of $6.55–$6.80.
Company & Industry OverviewsWellCare Health Plans Expects Robust Revenue Performance in 2017
In 1Q17, WellCare Health Plans (WCG) reported revenues of ~$3.9 billion, which totals year-over-year growth of around 11.7%.
Company & Industry OverviewsAnalysts’ Recommendations for WellCare Health Plans in May 2017
On April 28, 2017, WellCare Health Plans (WCG) completed the acquisition of Universal American Corp. This deal added 119,000 Medicare Advantage members from several major markets
Earnings ReportWhy Anthem’s Benefit Expense Ratio Rose in 1Q17
Expense guidance for 2017 For full-year 2017, Anthem (ANTM) has projected the medical cost trend for its local group business to fall in the range of 6.5%–7.0%. To learn more about medical cost trends, please see Medical cost trend means rising premiums for health insurance. If Anthem’s actual medical cost trend for full-year 2017 turns out […]
Earnings ReportAnalysts’ Recommendations for Anthem in 2017
Based on the company’s performance in 1Q17, Anthem (ANTM) has increased its 2017 revenue guidance by around $1.5 billion.
Earnings ReportWhy Centene’s Health Benefit Ratio Improved in 1Q17
Centene (CNC) has projected its health benefit ratio (or HBR) for the full year 2017 to fall in the range of 87.0% to 87.5%.
Earnings ReportUnitedHealth Group Witnessed Robust Customer Growth in 1Q17
In 1Q17, UnitedHealth Group’s (UNH) UnitedHealthcare business witnessed a 2.5 million year-over-year increase in customers.
Earnings ReportOptumRx and OptumInsight May Witness Robust Growth Trends in 2017
In 1Q17, UnitedHealth Group’s (UNH) Optum business reported $21.2 billion in revenues, which represents year-over-year growth of around 7.9%.
Earnings ReportOptumCare Is a Major Driving Force for UnitedHealth Group in 1Q17
In 1Q17, UnitedHealth Group’s (UNH) OptumHealth segment served 6 million more people on a year-over-year basis.
MiscellaneousNegative Sentiment Will Impact Health Insurance Companies
The healthcare bill’s failure had a negative impact on investor sentiment for health insurance carriers.
Company & Industry OverviewsOptumRx Continues to Boost UnitedHealth’s Pharmacy Care Services
In its bid to control healthcare costs, UnitedHealth Group’s (UNH) OptumRx segment has been actively deploying data analytics across its Optum platform.
Company & Industry OverviewsWill UnitedHealth’s Optum One Improve Decision-Making in 2017?
UnitedHealth Group’s (UNH) Optum One is being used by about 700 hospitals and 7,000 medical clinics, which together cover about 140,000 healthcare providers.
Company & Industry OverviewsOptum360: Will It Become UnitedHealth’s Key Growth Driver?
Optum360, UnitedHealth Group’s (UNH) hospital revenue cycle management solution, is expected to reach $60.0 billion in billings for clients and partner organizations.
Company & Industry OverviewsUnitedHealth Group: Robust Revenue Expected
Wall Street analysts have projected UnitedHealth Group’s 2016 revenues to be about $183.9 billion, which is a YoY growth of 17.1%.
Fund ManagersSector Composition of the Alger Spectra Fund in YTD 2016
Compared to the Russell 3000 Growth Index, SPECX is markedly overweight in the information technology and healthcare sectors.
Earnings ReportWhat Do Analysts Recommend for UNH ahead of 2Q16 Earnings?
The consensus 12-month target price for UnitedHealth Group’s stock is ~$152.60, which represents a rise of 8.8% from the stock’s closing price of $140.30 on July 11, 2016.
Earnings ReportWhat You’ll Want to Know about Anthem’s Guidance for 2016
In its 1Q16 conference call, Anthem updated its 2016 revenue guidance to $81 billion–$82 billion—higher than the previous projection by about $1 billion.
Earnings ReportOutpatient and Pharmacy Costs May Drive Up UnitedHealth Group’s Medical Costs in 2016
In 1Q16, UnitedHealth Group witnessed overall medical cost trends in the range of 5.5%–6.5%. This is in line with the 2016 guidance given in December 2015.
Earnings ReportBehind OptumHealth’s and OptumInsight’s Strong Revenue Growth in 1Q16
UnitedHealth Group’s healthcare delivery business, OptumHealth, managed to earn $4 billion revenues in 1Q16, which represents a YoY growth of about 22%.
Earnings ReportWhy UnitedHealth Group Plans to Reduce Its Public Exchange Exposure
Given the high-risk profile of individual exchange enrollments, UnitedHealth Group has decided to offer plans only on a few public exchanges in 2017.
Earnings ReportWhat Drove UnitedHealth Group’s Medicare & Retirement Business in 1Q16?
UnitedHealthcare’s Medicare & Retirement business reported revenues worth $14.1 billion in 1Q16, which represents a YoY increase of approximately 10%.
Earnings ReportUnitedHealth Group’s 1Q16 Earnings Are Out: Here’s What the Conference Said
UnitedHealth Group (UNH) posted its 1Q16 earnings on April 19. The company registered diluted EPS of $1.81—17% higher than its EPS in 1Q15.
Macroeconomic AnalysisWhy You Should Exercise Caution When Investing in Healthcare
The rally seen in the healthcare sector over the last five years has largely been driven by biotechnology stocks.
Earnings ReportWhat Subsidy Eligible Membership Could Mean for Centene’s Public Exchange Revenues
Centene managed to increase its public exchange membership from 75,000 members in 2015 to 146,000 members in 2015.
Earnings ReportMedicaid Enrollments Drove Centene’s Revenues in 2015—But Which Way?
In 4Q15, Centene’s Medicaid enrollments witnessed a solid YoY growth of about 24.5%, reaching about 5 million.
Earnings ReportCigna’s Earnings Margin Falls due to Increased Medical Costs
In 4Q15, Cigna’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin fell year-over-year (or YoY) by 0.7% to reach 9.7%.
Earnings ReportCustomer Growth Drove CI’s Global Supplemental Benefits Business
In 2015, Cigna’s (CI) global supplemental benefits business earned revenues of about $3.1 billion, year-over-year (or YoY) growth of about 4.8%.
Earnings ReportAnthem’s Medical Care Ratio Jumped in 4Q15
In 4Q15, Anthem’s medical care ratio, a ratio of medical costs against premium revenues, rose by 2.5% YoY. Its medical care ratio for fiscal 2015 was 83.3%.
Earnings ReportAnthem’s Government Business Enrollments Rose by 0.78 Million in 2015
Anthem’s Government business earned revenues of $40.8 billion in 2015, a YoY increase of 20.8%. The division’s revenues were $10.6 billion in 4Q15.
Earnings ReportAnthem Posts Lower-than-Expected Earnings Per Share in 4Q15
Anthem’s diluted earnings per share in 4Q15 fell short of estimates by $0.04. The results represent the company’s lowest quarterly adjusted EPS in 2015.
Earnings ReportHow Will Aetna’s Valuations Compare with Its Peers in 4Q15?
Aetna’s PE multiples have been supported mainly by better-than-expected growth of its Medicare and Medicaid business. But its valuations have been affected negatively by high exposure to the ACA.
Earnings ReportHumana Acquisition Could Be Aetna’s Key Long-Term Growth Driver
Aetna’s Humana acquisition is mainly aimed at increasing the combined companies’ exposure to the high-growth Medicare business. The deal is currently being scrutinized by antitrust regulators.
Earnings ReportGovernment-Sponsored Programs Expected to Drive Aetna’s Revenue
Government-sponsored programs such as Medicare and Medicaid are expected to be key drivers of Aetna’s (AET) revenue growth in 4Q15.
Earnings ReportMedicare Plans Were Key Drivers of UnitedHealth Group’s Revenues
UnitedHealth Group’s (UNH) Medicare & Retirement segment currently serves one of every five Medicare beneficiaries in the United States.
Earnings ReportUnitedHealth Group Posted 4Q15 Earnings: What You Should Know
UnitedHealth Group (UNH) released its 4Q15 and full year 2015 earnings on January 19, 2015. The company registered diluted EPS attributable to common shareholders of $1.26 in 4Q15 and $6 for 2015.
Company & Industry OverviewsIHF’s Large-Cap Stocks Gave Positive Returns
The large-cap stocks of the iShares US Healthcare Providers ETF (IHF) rose marginally with a return of 0.35%. They outperformed IHF and SPY.
Company & Industry OverviewsXLV Review: How Did the ETF’s Subgroups Perform?
On December 1, the healthcare-services subgroup outperformed all other subgroups in XLV with a return of 3.3%. The biotechnology subgroup returned 0.8%.
Company & Industry OverviewsUnitedHealth Group Updates Its 2015 Guidance
UnitedHealth Group updated its prior guidance for fiscal 2015 on its 3Q15 conference call, projecting earnings of about $6 per share.
Company & Industry OverviewsUnitedHealth Declares Dividend, Stock Rises
UnitedHealth Group rose 1.4% on November 10, 2015. The company announced a dividend of $0.5 per share to be paid on December 15, 2015.
Earnings ReportUnitedHealth Group’s 3Q15 Medical Care Ratio Rose
In 3Q15, UnitedHealth Group’s consolidated medical care ratio, which is the ratio of medical costs to the premium revenue, fell by 0.9% on a year-over-year (or YoY) basis.
Earnings ReportWhat Are UnitedHealth Group’s Growth Opportunities?
To strengthen their presence in international markets, health insurance companies have been involved in mergers and acquisitions with local insurance companies in these markets.
Earnings ReportUnitedHealthcare Added 1.7 Million Enrollments in 3Q15
In 3Q15, UnitedHealth Group’s (UNH) UnitedHealthcare segment added 1.7 million people year-over-year across the commercial, Medicare, and Medicaid benefits markets in the US.
Earnings ReportWhy UnitedHealth Group’s Net Profit Margins Fell
In 3Q15, despite a rise of total revenues by 27% year-over-year, which includes 10% organic growth, UnitedHealth Group reported a decline of about 1% in net profit margins.
Earnings ReportReduced Expenses Lead to Aetna’s Higher 1Q15 Margins
Aetna’s EBITDA margins rose from 10.6% in 1Q14 to 11.3% in 1Q15. Enrollment growth and an effective cost optimization strategy led to the high margins.
Macroeconomic AnalysisUnderstanding the Phenomenal Growth of ASEAN Nations
The growth of the ASEAN member nations has been extraordinary, to say the least. The GDP for the region expanded at a whopping 313% between 2001 and 2013.
Company & Industry OverviewsHumana Stock Rose 4.34% August 25–31
With a market cap of $27 billion, Humana is one of the leading companies in the healthcare service subgroup. HUM stock rose 4.34% for the period August 25–31, 2015.
Fund ManagersA Structural Analysis of PanAgora and Renaissance Technologies
PanAgora and Renaissance Technologies are both investment management firms that use a quantitative-based investment approach.
MiscellaneousIs the Cigna–Anthem Merger a Setup?
The Cigna–Anthem merger deal will be subject to all sorts of headlines that will affect the spread. You can make a decent return trading around the position by keeping your head .
MiscellaneousThe Risk-to-Reward Ratio of the Cigna–Anthem Merger
If the Cigna–Anthem merger closes, you end up making about $35 a share. If the deal breaks, then you would have to cover at $52 a share.
MiscellaneousThe Huge Spread on the Cigna–Anthem Merger
In the case of the Cigna–Anthem merger, Anthem (ANTM) is buying Cigna (CI) for a headline amount of $188 a share, comprised of 0.5152 shares of Anthem and $103.40 in cash.
MiscellaneousIs UnitedHealth Group a Better Partner for Cigna?
Based on market capitalization, UnitedHealth Group appears to be a stronger partner for Cigna.
MiscellaneousWill Anthem Acquire Cigna?
The second-largest health insurance company in the US, Anthem is planning to acquire Cigna. Lack of consensus on leadership and governance-related issues seem to be delaying the deal.
Company & Industry OverviewsCentene–Health Net Deal: Potential Risks
With the health insurance industry witnessing a wave of consolidations, it is expected that a majority of acquirers may risk overpaying for their targets.
MiscellaneousAnalyzing the Market’s Response to the Centene–Health Net Deal
The Centene–Health Net deal is expected to be completed by early 2016, pending approval by the shareholders of both companies.
MiscellaneousSynergies in Centene’s Acquisition of Health Net
Centene projects that Health Net’s acquisition will help Centene realize pre-tax synergies worth $150 million by the end of the second year after the closure of the deal.
MiscellaneousCentene–Health Net Entity Could Be Medicaid Leader
Centene aims to position itself as a leader in the fast-growing Medicaid market. Health Net’s acquisition will add ~1.7 million Medicaid members to the company’s portfolio.
MiscellaneousCentene Announces Its Acquisition of Health Net
On July 2, Centene announced the acquisition of Health Net for a combination of cash and shares amounting to $6.8 billion. This includes the assumption of Health Net’s $500 million debt.
MiscellaneousWhat Is the Risk-to-Reward Ratio of the Humana–Aetna Deal?
Scenario analysis In the risk-arbitrage world, a 12.2% expected return means a deal that has a lot of risk. Arbitrageurs sometimes refer to risk as “hair.” This deal is guaranteed a second request, and the regulators may simply be unable to get comfortable with the transaction, no matter what the companies offer in the way […]
MiscellaneousCould Competing Bids Disrupt Aetna’s Purchase of Humana?
Aetna is buying Humana for about $37 billion, which works out to be about 0.73x trailing 12-month revenues and 13.7x trailing 12-month EBITDA.
MiscellaneousAetna Projects Annual Synergies through Its Humana Acquisition
Aetna projects that its Humana acquisition will help Aetna realize annual synergies worth $1.25 billion in 2018.
MiscellaneousWhy Did Aetna Target Humana for an Acquisition?
If the Aetna-Humana acquisition is approved by anti-trust regulators, Aetna’s government-sponsored enrolments will rise.
MiscellaneousRationale for the Cigna-Anthem Transaction
The merger of Anthem and Cigna is all about extracting synergies and driving down costs. As the Affordable Care Act puts pressure on health insurers, they need to cut costs to maintain margins.
Earnings ReportKey Takeaways from Aetna’s 1Q15 Earnings Release
Aetna (AET) announced its 1Q15 earnings on April 28, 2015. The company posted EPS of $2.30, beating Wall Street EPS estimates of $1.94.
Earnings ReportIncreased 1Q15 Costs to Hurt Anthem’s EBITDA Margins
Analysts projected that Anthem’s revenue will be higher in 1Q15 compared to 1Q14. However, the company will likely experience a drop in EBITDA margins.
Earnings ReportModest Commercial Enrollment Growth to Help Anthem in 1Q15
In addition to strong Medicaid enrollments, Anthem has projected a decent growth in its commercial enrollments, especially in the individual segment.
Earnings ReportCigna’s Shares Up by 16.4% Since Its Previous Earnings Release
Cigna’s revenue is estimated to be $9.3 billion, and its EBITDA margin is expected to be ~9.0%. Its net income is expected to be around $480.6 million.