Land This Bargain Even Cheaper Than Director Aguirre Did

There�s an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on August 4, Aetna Inc.�s Director, Fernando Aguirre, invested $100,013.00 into 2,575 shares of AET, for a cost per share of $38.84. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

Click here to find out which 9 other dividend bargains you can buy cheaper than insiders, at DividendChannel.com »

In trading on Tuesday, bargain hunters could buy shares of Aetna Inc. (NYSE: AET) and achieve a cost basis even cheaper than Aguirre, with shares changing hands as low as $38.82 per share. It should be noted that Aguirre has collected $0.15/share in dividends since the time of their purchase, so they are currently up 0.3% on their purchase from a total return basis. Aetna Inc. shares are currently trading off about 0.8% on the day. The chart below shows the one year performance of AET shares, versus its 200 day moving average:

Looking at the chart above, AET�s low point in its 52 week range is $29.54 per share, with $46.01 as the 52 week high point � that compares with a last trade of $39.12. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased	Insider	Title	Shares	Price/Share	Value
08/04/2011	Fernando Aguirre	Director	2,575	$38.84	$100,013.00

The current annualized dividend paid by Aetna Inc. is $0.60/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 10/11/2011. Below is a long-term dividend history chart for AET, which can be of good help in judging whether the most recent dividend with approx. 1.5% annualized yield is likely to continue.

According to the ETF Finder at ETF Channel, AET makes up 5.50% of the iShares Dow Jones U.S. Healthcare Providers Index Fund ETF (AMEX: IHF) which is trading lower by about 0.5% on the day Tuesday.

See what other ETFs contain AET »
See what other stocks are held by IHF »

AET operates in the Hospital & Medical Practitioners sector, among companies like Hanger Orthopedic Group, Inc. (NYSE: HGR) which is down about 1.6% today, and National Healthcare Corp. (AMEX: NHC) trading lower by about 0.5%. Below is a three month price history chart comparing the stock performance of AET, versus HGR and NHC.

Special Offer: Find out what Dave Moenning is holding in the ETF Channel Flexible Growth Investment Portfolio with a special 20% off coupon from Forbes and 30 Days Free.