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Cigna Corporation (CI)

NYSE - Nasdaq Real-time price. Currency in USD
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256.88-0.69 (-0.27%)
At close: 04:00PM EDT
256.88 0.00 (0.00%)
After hours: 07:56PM EDT
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  • K
    Koda
    I was able to earn over $34k in 2 weeks.. with an investment of $5k it been so amazing trading and investing with Mr Charlie Saylor  platform, you can contact him via Whats>App +1 (516) 831‑8002 or Tele>gram @Charlie_Saylor
  • j
    jim cramer
    going back to $200??
  • Z
    ZurcBob
    Let’s get to $300 already, we are way overdue.
  • Z
    ZurcBob
    I officially want Cordani out. What has he done in the last 365 days?
    The stock is below the price it was 365 days ago; other than to put $92,694,316.10 into his own pocket, what has Cordani done for Cigna since 2021? Seriously, what has Cordani done for Cigna? Time to vote a new CEO for Cigna.
  • S
    Scott
    This may be one of the safest healthcare stocks to buy. Given it's low valuation it's already de-risked quite a bit and their share buyback program and shareholder return program pretty much assures a ~10% EPS yoy increase (and that is assuming ZERO total earnings growth). Add in a ~2% dividend and even a modest 3% total earnings growth and you're at ~15% annual returns with no multiple expansion. A P/E of 11 is low but if interest rates were at 3% and we hit a recession the multiple shouldn't collapse less than 7 or 8 (long term). Wait and see how united health's multiple collapses 70%. Great place to park your money and DRIP as long as forward P/E remains <13
  • i
    isernia
    Yahoo! has been so bad lately - especially the CI board. I like using (http://boomstox.info) now instead for my daily research.
  • J
    Jerry
    Rolling over on a strong market up day. May get a chance to add in $228 aea.
  • T
    TraderJeff
    No much for posting here today despite a really strong up day .
  • Y
    Yahoo Finance Insights
    Cigna is up 4.93% to 264.50
  • Z
    ZurcBob
    friday, almost 1.6 million shares at closing.
  • v
    violet
    BofA downgrade is a buying opportunity! Analyst’s rationale is he is not sure about earnings visibility due to a bit of confusion around guidance provided on the 2Q call and likely higher 3q/4q medical costs. CI just reiterated guidance a week ago and the ASR should add some cushion to that given the healthy 60 cents of annual EPS accretion from buying in 3% of the FD OS in one quarter. So there is upside to his numbers, in contrast to what he says in his note.

    On top of that, he says 10X is the right multiple for the business because it is somewhat slower growing and that has been the avg multiple since the Express Scripts deal was announced. More poor logic here. Cigna’s business is much less capital intensive as it’s 70+% services and 80% ASO in the MCO space. That allows for 10-13% EPS growth when including reinvestment of FCF, on par with other MCOs. Why is 10X the right multiple for a capital light FCF machine that grows earnings HSD organically? CI said it will generate $50 bil in operating cash flow in the 2021-2025 timeframe. That’s relative to the current $68 bil mkt cap…pretty compelling.

    Who cares if 3q/4q have higher medical costs?! It means little when focusing on the intermediate term earnings power of the business as pricing/plan structures can be adjusted for 2022 and beyond to incorporate Covid related costs. Ultimately these are transitory headwinds that won’t affect 2023 earnings (my EPS estimate is $27 assuming 310 mil shares vs 330 mil shares post ASR completion). Put 10x (even if that’s a conservative multiple)on that Kevin and you get $270.

    Underperform? Really? Seems like this guy’s analyst skills are underperforming since he was touting the stock $65 points higher.
  • v
    violet
    $50 billion in expected operating cash flow ($40 billion in free cash flow) over the next 5 years vs. the current market cap of $70 billion is really compelling. Cigna plans to deploy an average of $8 billion per year to dividend, buybacks and some M&A. Assume $6 billion on average goes to buybacks and dividends…that is $18 per share in capital return, or roughly 9% of the current market cap. FCF yield today is 10%, growing to 15% by 2025. Cigna generated roughly $20 billion in cash flow during the past 2 years and retired roughly $10 billion in debt (also using proceeds from the Disability business sale). Most of the business is services, not insurance. Within the managed care portfolio 80% is in administrative (ASO) arrangements where Cigna does not bear underwriting risk. Estimates for Evernorth keep getting revised higher as that business is growing much faster than guidance. COVID is likely a very transitory headwind that is fully behind the company by 2023 (and partly by 2022). The company has the ability to reprice its insurance business every year as cost trends dictate. The accelerated share repurchase announced last week will take another 3% out of the share count immediately (equivalent to 60 cents in EPS accretion for 2022). How is this stock trading for less than 9X NTM EPS?!
  • S
    Smallcap Lover
    $RWLK conversation
    Great news for ReWalk for a major insurance agency like $CI to make changes to their policy regarding exoskeleton devices and those in need. Volume is great off the open, now let's see a push to .50
    https://stockwatchers.finance.blog/2019/02/13/3-healthcare-stocks-setting-the-pace-on-wednesday/
  • J
    J
    Any clues why CI's stock went down, rather than up? The earnings call is nothing but positive, nothing about it that shouldn't send the stock way up. Their short interest was 1.44%, not particularly high. What's going on with the constant downward pressure on a stock that could be > 200 with all that's going on in that company?
  • S
    Scott
    Love how Unitedhealth and Humana trade at 20x and 15x (P/E, P/FCF, & EV/EBITDA) while Cigna is at 10x. Assuming Cigna can close the gap we're looking at huge upside just from multiple expansion, not considering the ~15% economic returns (topline growth, buybacks, dividends)
  • Y
    Yup
    Business rationalization or lack there of. I think some investors were expecting to hear consolidation outline and they didn't get it. Start with the duplicate Accounting and HR departments and then the low hanging fruit of numerous office space spread out around the country as easy first steps. I guess a promise or two was made but it will have to be done sooner rather than later.
  • v
    violet
    Are EPS estimates for 2022 too conservative?!

    Let’s revisit.

    Cigna guided to at least $20.20 for 2021 and at least 10% higher in 2022…implying $22.22.

    But the 2021 EPS figure was based on a avg FD share count of 344-345 mil. FD shares were around 340 mil at the time of the 10Q filing, however. With the $2 bil ASR that should fall by 9.5-10 mil going into 2022…so 330 mil. That by itself would add 60 cents to full year 2022 EPS (and 15 cents to 2021). Plus, Cigna assumes it will recover $1.00 of covid related EPS in 2022. So those items by themselves bring 2022 EPS up by $1.60 (out of the $2.02 assumed in guidance). Plus Cigna is calling for growth in both its medical business and Evernorth, with margin/efficiency improvements expected (as per the Morgan Stanley conference presentation). Plus, there will be additional shares repurchased in 2022…which will be additionally highly accretive to EPS. Plus, the sale of the international non-core business will likely be neutral to EPS (but result in another $5 bil in buybacks).

    So overall $10 bil in buybacks (15%+ of the current mkt cap)!

    And unless the core business is down in 2022 Cigna should easily meet the $22.22 EPS number it guided to and very likely HANDILY exceed it. I am at $23.50-24 for 2022…just assuming moderate core growth and continued buybacks.

    All thoughts welcome on my math or otherwise.
  • J
    Joe
    What am I missing? To me this earnings report was great and the only reason it is dropping is because it barely missed analysts' predictions. $11.45 net income before reporting the buybacks is a great quarter and almost half the year's earnings. I see this as nothing but a positive but I'm here to listen to opposing perspectives.
  • v
    violet
    Results were way better and guidance seems extremely conservative. The slightly higher Medical Loss Ratio guidance was likely much better than feared. Investment income was high in 3q…probably not sustainable. But Revenues overall looked fantastic. Need clarity on 4q cash flow assumption and 2022 outlook. I’m at $23.50+ in EPS for 2022 and $26-27 for 2023…WAY above consensus…as earnings power is masked by elevated COVID costs (I now estimate $3+ in TRANSIENT EPS headwinds, even though the company didn’t update this in the release). See my previous posts for the detailed methodology.

    No operational guidance lift for 2021 despite the big 3q beat seems VERY conservative.
  • v
    violet
    Despite spike in COVID cases…Cigna (CI) – The insurer will reaffirm its 2021 and 2022 earnings guidance at its upcoming investor meetings, according to an SEC filing. Cigna expected 2021 adjusted earnings of at least $20.35 per share and sees projected growth of at least 10% for 2022.

    8-K out today.

    Also, announced new IR head…was top sell side analyst at Citi.