Aetna Beats Street Expectations: Shares Surge

Shares of Aetna were notable movers during the early morning trading session today. The stock surged by close to 4 percent on the back of above average volumes which is considered to be a bullish sign. The price action on the back of high volumes is a clear indication of the shift of momentum towards the buy side. The surge in the stock was on the back of the company reporting a stellar set of earnings results which were higher than most street estimates. It is imperative to state that the company was able to do so despite higher tax costs from a number of acquisitions. The company also raised its 2015 forecast again saying that it now expects adjusted earnings to range between $7.45 and $7.55 per share.

In the third quarter, Aetna’s net income slid 6 percent to $560.1 million from $594.5 million that a company reported during the same period last year. Adjusted results totalled $1.90 per share which is 12 cents better than most analysts on the street. Operating revenue which excludes investment gains rose by 2 percent to about $14.99 billion which is being seen as a huge positive by traders and investors on the street. Many analysts continue to remain bullish on the long term growth trajectory of the company.

When looking at the charts for Aetna, the stock has been trading with a narrow trading range and has broken above its important daily moving averages which is a bullish sign. The relative strength index for the stock has given a buy signal which is a positive. The momentum indicators have given a buy signal which is indicative of the shift of interest towards the buy side. Traders on the street believe the stock could head to levels of $118 in the near term.