Aetna and Humana were both having a relatively normal day in the market today. When the market opened, both stocks started heading for the green. Throughout the day, they have both seen some green and some red, but nothing was exciting enough to write home about. Nonetheless, that all changed minutes ago as both stocks started to take a dive. Below, we’ll talk about what we’re seeing form AET and HUM, why, and what we’ll be watching for ahead.
What We’re Seeing From AET And HUM
As mentioned above, both Aetna and Humana were off to a relatively normal start to the day’s trading session. Throughout the session, both stocks have seen the red and the green, but nothing exciting was happening. However, that all changed minutes ago as both stocks started to take a dive. At the moment (11:44), AET and HUM are trading at $120.00 and $195.82 per share respectively after respective losses of $2.53 per share (2.06%) and $4.71 per share (2.35%) thus far today.
Why The Stocks Are Diving
As soon as the CNA Finance team received the alerts from Trade Ideas that AET and HUM were taking dives, we started digging to see exactly what was causing the movement. It didn’t take long to dig up the story, and it wasn’t a great one for either of the companies involved. Ultimately, it seems as though the declines are being caused by merger news.
Minutes ago, Bloomberg released a report with regard to the massive merger between these two companies. It has been announced that a Federal Judge made the decision to block the deal, saying that it is anticompetitive in nature. Ultimately, the merger between Aetna and Humana would have created somewhat of a monopoly, and the judge wasn’t going to have that. As a result, both stocks are falling as they react to the news.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on both AET and HUM. While the merger has been blocked in Federal Court, both companies have quite a bit going for them. We’re excited to hear about their next moves following this news. We’ll keep a close eye on the news and bring it to you as it breaks!
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