Health Net (HNT) NewsBite - Health Net Cuts 2008 Outlook

Tuesday, August 05, 2008 3:19 PM EDT

Health Net Inc. (HNT) opened at 24.05. So far today, the stock has hit a low of 24.00 and a high of 26.77. HNT is now trading at 26.92, down 1.38 (-5.74%). The stock hit its 52 week high of 56.00 in September and set its 52 week low of 21.71 in July. HNT has been moving downwards for the past year. Health Net announced today its second-quarter profit fell 16.7% to $76.7 million on higher medical costs. The company posted earnings of 74 cents per share on revenue of $3.84 billion, while analysts expected profit of 74 cents per share on revenue of $3.82 billion. Health Net also slashed its full-year outlook to between $2.85 and $2.95 per share. Technical indicators for the stock are bullish but slightly deteriorating while S&P gives HNT a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $30 range. HNT stock could rise up to 11.4% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]

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