Monday 14 July 2014

Aetna’s Major Challenges in 2014



Aetna is a US based company which in the health industry business. The company offers wide range of products providing a range of traditional and consumer directed health care insurance products and related services, including medical, pharmaceuticals. Aetna is a fortune 100 company and its major portion of business comes from selling insurance plans. The company sells health insurance plans to over 35 million people. The company operates its business in three sectors namely health care, life insurance and large case pensions. The companies 88% of the revenues comes from the health care premiums its charges to its customers. Aetna is traded on New York Stock Exchange (NYSE) with the ticker symbol of AET and Aetna stock price currently is $75. The analysts have a BUY stance for the Aetna at this price of share because the company has a positive outlook for the year 2014. Aetna has a market capitalization of over $27 Billion. The main problem which can cause a stress on Aetna’s bottom line is the rising health care costs globally. The rising health care costs affect its margins directly and can prove to be detrimental for Aetna’s earnings.

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