Aetna Inc. has made its IPO on December the 20th, 1982 and is one of the most diversified companies in the sphere of healthcare. It offers a very wide range of health insurance services such as medical, pharmaceutical, dental, group life plans, medical management and so on. Its focus is towards the average consumer and are amongst the most available in the industry. Medical healthcare management and health information exchange services are amongst the latest contributions to its portfolio. The company’s operations are based on three main sectors – health care, pensions and group insurance.
Among its targeted customers are college students, short-term workers, healthcare providers, government organizations, labor groups and even expatriates. Based on a 2012 estimate the company is serving more than 36.4 million people. In 2013 it announced that it has become one with the Coventry Health Care Inc., buying a major part of its shares. It made a similar announcement in April, 2014, when Aetna diversified further with a takeover of Inter Global – an influential company in the United Kingdom.
The company’s products are medical and pharmacy management services, as well as dental and behavioral health plans. They are offered both to insured customers and employer funded. This increases the reach of the company, making it amongst the most popular in the sector. The Aetna Health Fund is a consumer directed health plan that combines both POS and PPO, as well as a dental coverage.
Apart from average consumers, Aetna’s products are targeted towards large multinational and middle sized companies. Many employers in the US prefer Aetna for the insurance policies of their businesses and the Commercial division of the company is responsible for this large sector of its operations.
Aetna’s stock quotes for the previous year were definitely satisfactory for its shareholders. AET stock price today is around $75, which is a spectacular increase from the same time last year, when it was trading for $59. Its EPS of $5.75 makes it a financially stable company and its recent increase in capital gains has brought enough confidence for the management to remain its dividend payout to 1.21%.
Of course, there are specific reasons for the booming popularity of the healthcare company. Aetna recently announced that it will work with the National Kidney Foundation on a mutual program that is going to help member of Aetna with chronic kidney disease. The Aetna Innovation labs are taking charge in the project, working closely with specialists in the sector. Furthermore, the company has insured its positive image by providing the patients with an online platform where they can interact with doctors.
This is definitely a smart move, and five days since its announcement the AET stock prices jumped with 8%. Expectations are that this new program will improve the demand for Aetna’s services and will increase the already booming earnings. Right now there are $1.05 billion of revenue per each employee in the company, which makes it one of the most lucrative in the sector.
Apart from that the company recently announced that it is forming an Accountable Care Organization with the Northeast Medical Group in Connecticut. To the end of the day Aetna’s share price went up with 1%, which increased to 3.8% over the next several days. Apart from the monetary perspective, this is also an improvement for AET’s image, as it is again a program pointed towards Aetna’s members – with such a renowned organization on its side, demand are revenues are bound to boom for the next quarter, starting from July the 1st.