CIGNA Corporation (CI) Stock Up on Better Than Expected Earnings Report


Shares of CIGNA Corporation (NYSE:CI) are trading up around 0.5% in the pre-market this morning after the health insurance company released their Fourth Quarter earnings and FY16 guidance. The company reported earnings per share of $1.87, beating Wall Street’s expectations of just $1.80. Additionally they posted $9.53 billion in revenue which also topped the Street’s forecast of $9.52 billion.

For fiscal year 2016, CIGNA Corporation (NYSE:CI) expects earnings per share to come in between $8.85 and $9.25. This was a bit discouraging to investors after analysts had been predicting an EPS of $9.30 per share for FY16.

“The effective execution of our global strategy and our differentiated capabilities provide us with strong momentum as we begin 2016,” CIGNA CEO David Cordani explained. “Our pending combination with Anthem will further accelerate our strategy to improve quality, choice, and affordability in the marketplace.”

The stock increased 0.48% or $0.63 on February 3, hitting $132.53. CI has declined 18.21% since June 30, 2015 and is downtrending. It has underperformed the S&P500 by 10.70%.

From a total of 7 analysts covering CIGNA (NYSE:CI) stock, 5 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 71% of the ratings are positive. The highest target price is $182 while the lowest target price is $156. The mean of all analyst targets is $166.75 which is 25.82% above today’s ($132.53) stock price. CIGNA was the topic of 11 analyst reports since July 27, 2015 according to the firm StockzIntelligence Inc. Jefferies upgraded shares on January 8 to a “Buy” rating. RBC Capital Markets maintained CI stock in a recent report from November 9 with a “Sector Perform” rating. Finally, JP Morgan initiated the stock with a “Overweight” rating in a report they issued on a September 16.

The institutional sentiment decreased to 0.86 in Q2 2015. It’s down 0.08, from 0.94 in 2015Q2. The ratio turned negative, as 93 funds sold all their CIGNA Corporation shares they owned while 274 reduced their positions. 87 funds bought stakes while 229 increased their total positions. Institutions now own 228.33 million shares which is 4.94% more than the previous share count of 217.57 million in 2015Q2.

Redwood Capital Management Llc holds 11.08% of its total portfolio in CIGNA Corporation, equating to 562,130 shares. Roystone Capital Management Lp owns 1.27 million shares representing 8.19% of their total US portfolio. Moreover, Crescent Park Management L.P. has 7.71% of their total portfolio invested in the company, equating to 257,247 shares. The New York-based Cowen Group Inc. has a total of 5.83% of their portfolio invested in the stock. Sivik Global Healthcare Llc, a Connecticut-based fund reported 75,000 shares owned.

Since March 4, 2015, the stock had 0 buys, and 3 selling transactions for a total of $10.96 million in net activity. Fritch Herbert A sold 39,202 shares worth $5.36 million. Harris Isaiah Jr sold 319 shares worth $44,989. Manders Matthew G sold 3,028 shares worth $400,998. Hoeltzel Mary T sold 15,188 shares worth $2.01 million. The insider Zollars William D sold 369 shares worth $45,167.

Cigna Corporation , together with its subsidiaries, is a health services company. The company has a market cap of $33.99 billion. The Firm offers medical, dental, disability, life and accident insurance and related services and products. It has 16.31 P/E ratio. The Firm operates in three divisions: Global Health Care, Global Supplemental Benefits and Group Disability and Life.