In a recent transaction, Granger Elder, a director of Cigna Group (NYSE:CI), sold 1,000 shares of the company's common stock at an average price of $338.08 per share, totaling approximately $338,000. The sale was conducted according to a Rule 10b5-1 trading plan, which was adopted on March 13, 2024.
On the same day, Elder also acquired 1,000 shares of Cigna Group common stock through an option exercise at a price of $175.09 per share, amounting to a total of $175,093. These stock options were originally granted on May 6, 2015, and became fully vested with the acquisition of Express Scripts Holding Company on December 20, 2018.
Following these transactions, Elder's direct ownership in the company has adjusted to 5,471 shares of common stock. It's important to note that these financial activities were planned and are part of a structured trading plan, affording company insiders the ability to sell shares over time in an orderly and planned manner.
Cigna Group, with its headquarters located at 900 Cottage Grove Road, Bloomfield, CT, operates within the hospital and medical service plans industry. The company, incorporated in Delaware with an IRS number of 824991898, has a fiscal year end on December 31.
For investors tracking insider transactions, such moves can provide insights into the perspectives of company executives and directors regarding the stock's value. However, it's also important to consider the broader context in which these transactions occur, including the individual's portfolio strategy and market conditions.
In other recent news, Cigna Corporation (NYSE:CI) has been the subject of multiple price target adjustments by analyst firms following strong first-quarter results. Jefferies raised its price target on Cigna's shares to $407 from $385, citing the company's outperformance in its medical loss ratio. Additionally, the firm made a slight upward adjustment to its earnings per share estimate for Cigna in 2025, indicating a more optimistic outlook for the company's financial performance.
Oppenheimer also increased its price target for Cigna to $400.00 from the previous $370.00, following robust first-quarter results. The firm raised its EPS estimates for the years 2024, 2025, and 2026 in response to the company's performance and updated guidance.
Cantor Fitzgerald updated its outlook on Cigna, increasing the price target to $400 from the previous $384, reflecting increased confidence in the earnings growth of Evernorth, Cigna's health services segment. Meanwhile, RBC Capital Markets adjusted its price target for Cigna shares to $384 from $383, expressing confidence in the company's direction, despite broader market challenges.
Cigna reported a robust first quarter for 2024, with total revenue reaching $57.3 billion and adjusted earnings per share climbing to $6.47. The company raised its full-year adjusted EPS guidance to a minimum of $28.40, driven by significant increases in their Specialty businesses within Evernorth and the Cigna Healthcare segment.
InvestingPro Insights
As we examine the recent insider transactions at Cigna Group (NYSE:CI), it's beneficial to consider the company's financial health and stock performance to gain a fuller picture. According to InvestingPro data, Cigna Group boasts a solid market capitalization of $94.89 billion, reflecting its substantial presence in the healthcare providers and services industry. The company's commitment to returning value to shareholders is evident through its impressive track record of maintaining dividend payments for 43 consecutive years and raising its dividend for the last three years. This dedication is further underscored by a notable dividend growth of 13.82% over the last twelve months as of Q1 2024.
Investors may also find comfort in Cigna Group's low price volatility, as indicated by its P/E ratio of 18.19, adjusted for the last twelve months as of Q1 2024. This stability is a critical factor for those looking for reliable investment opportunities in the current market. Additionally, the company's revenue growth has been robust, with a quarterly increase of 19.28% in Q1 2024, showcasing its ability to expand in a competitive industry.
For those considering an investment in Cigna Group, there are several InvestingPro Tips to keep in mind. The management's aggressive share buyback strategy indicates confidence in the company's future, which could be a positive sign for potential investors. Moreover, the company's valuation implies a strong free cash flow yield, suggesting that it may be undervalized relative to its cash generation capabilities. For investors seeking more in-depth analysis and additional tips, there are 13 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/CI. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Understanding the full scope of Cigna Group's financial performance and management's actions, such as share buybacks and dividend policies, can provide investors with a clearer insight into the company's long-term value proposition.
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