Should You Buy Aetna Inc. (AET)?

Page 1 of 2

Is Aetna Inc. (NYSE:AET) a superb investment right now? Investors who are in the know are betting on the stock. The number of long hedge fund positions improved by 7 recently.

Aetna Inc. (NYSE:AET)

In the financial world, there are many gauges market participants can use to track publicly traded companies. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can outpace their index-focused peers by a superb margin (see just how much).

Just as key, positive insider trading sentiment is another way to break down the investments you’re interested in. As the old adage goes: there are lots of reasons for an executive to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this strategy if you understand where to look (learn more here).

With these “truths” under our belt, let’s take a peek at the recent action regarding Aetna Inc. (NYSE:AET).

How have hedgies been trading Aetna Inc. (NYSE:AET)?

At the end of the first quarter, a total of 54 of the hedge funds we track were long in this stock, a change of 15% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, David Einhorn’s Greenlight Capital had the biggest position in Aetna Inc. (NYSE:AET), worth close to $332.8 million, accounting for 5.1% of its total 13F portfolio. The second largest stake is held by John Paulson of Paulson & Co, with a $332.3 million position; 1.9% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Daniel S. Och’s OZ Management, Barry Rosenstein’s JANA Partners and William B. Gray’s Orbis Investment Management.

Now, specific money managers were breaking ground themselves. Viking Global, managed by Andreas Halvorsen, assembled the biggest position in Aetna Inc. (NYSE:AET). Viking Global had 65.6 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $52.1 million investment in the stock during the quarter. The following funds were also among the new AET investors: SAC Subsidiary’s CR Intrinsic Investors, Dmitry Balyasny’s Balyasny Asset Management, and Curtis Schenker and Craig Effron’s Scoggin.

Insider trading activity in Aetna Inc. (NYSE:AET)

Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has seen transactions within the past half-year. Over the last half-year time frame, Aetna Inc. (NYSE:AET) has experienced 1 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Aetna Inc. (NYSE:AET). These stocks are Express Scripts Holding Company (NASDAQ:ESRX), Coventry Health Care, Inc. (NYSE:CVH), Humana Inc (NYSE:HUM), WellPoint, Inc. (NYSE:WLP), and CIGNA Corporation (NYSE:CI). This group of stocks belong to the health care plans industry and their market caps are closest to AET’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!