Cigna Group (NYSE:CI) Stock, Quote.Headers.trade-ideas

Cigna Group

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense, and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.

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Elevance Health reports Q2 revenues of $43.2 billion, slightly above consensus despite a 0.4% YoY decline driven by Medicaid membership attrition. Analysts express concerns over ongoing Medicaid margin pressures and regulatory impacts, leading to mixed price target revisions.

BofA Downgrades Elevance Health On Medicaid Pressure And Lowered Peer Valuations

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Investors expect Trump to ease Medicare Advantage regulations if he wins another term. This could lead to renewed merger talks among health insurers.

Healthcare Investors Bet On Easier Medicare Rules Under Potential Trump Administration

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The U.S. Federal Trade Commission (FTC) recently highlighted the significant influence of pharmacy benefit managers (PBMs) on drug prices due to market consolidation. This trend raises critical questions about the future of the cannabis industry, especially if cannabis is federally legalized.

Is Big Pharma Poised To Take Over Cannabis? 3 Companies Already Manage 8 In 10 Drug Prescriptions In The US

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Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) has outperformed the market over the past 20 years by 6.54% on an annualized basis producing an average annual return of 14.94%. Currently, Cigna Group has a market capitalization of $95.40 billion. 
Buying $100 In CI: If an investor had bought $100 of CI stock 20 years ago, it would be worth $1,660.76 today based on a price of $335.84 for CI at the time of writing.
<h3>Cigna Group's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721673018_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning Cigna Group Stock In The Last 20 Years

Wednesday, Elevance Health Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>) reported second-quarter revenues of $43.2 billion, down 0.4% year-over-year, marginally <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39815699/elevance-health-beat-street-estimates-on-q2-profit-and-revenue-sticks-to-annual-guidance" rel="noreferrer noopener">above the&nbsp;consensus of $43.05 billion</a>.&nbsp;
The decrease was driven by attrition in Medicaid membership, partially offset by higher premium yields reflecting the medical cost trend.
In the second quarter, UnitedHealth Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) and Elevance Health reported increasing pressure on Medicaid, creating uncertainty about when Medicaid margins will bottom out and when a potential recovery might occur.
Centene Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>), Cigna Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>), and Molina Healthcare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) are trading at a 3x lower valuation than Elevance Health. While Elevance Health&#8217;s diversification and quality justify some premium, this also limits its potential for further gains.
BofA Securities observes that Elevance Health has traditionally been seen as an investment lacking Medicare Advantage (MA) exposure. However, this perception may change following UnitedHealth&#8217;s stronger-than-expected results and a potentially improving regulatory landscape.
BofA has lowered the price target from $646 to $530 and downgraded Elevance Health to <a target="_blank" href="https://www.benzinga.com/quote/ELV/analyst-ratings" rel="noreferrer noopener">Neutral from Buy</a>.
The potential for insufficient rates (to cover a worsening risk pool) has been a concern since the suspension redeterminations (four years ago) started. BofA analysts downgraded Medicaid-focused names earlier this year.
However, companies have long argued that states know risk pool shifts and that rates would proactively reflect the sicker population. Even though many companies built in some margin mean reversion into the 2024 guide, the margin pressure is still higher than expected.
The analyst writes, &#8220;Ultimately, we believe rates will reflect acuity over time, but the fact that ELV also called out underlying utilization accelerating as a separate dynamic, while hospitals are talking about Medicaid volume acceleration, raises the likelihood that pressures could continue into 2025.&#8221;
Other analyst reactions:
<ul>
<li>RBC Capital maintains Elevance Health with an Outperform and raises the price target from $575 to $585.</li>
<li>Barclays maintains Elevance Health with an Overweight and lowers the price target from $621 to $611.</li>
</ul>
Price Action: ELV stock is down 2.7% at $506.85 at last check Thursday.
Image via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/07/39824077/unitedhealth-reports-noisy-quarterly-results-5-analysts-weigh-in-on-compelling-levers-of-improvement" target="_blank" rel="noreferrer noopener">UnitedHealth Reports &#8216;Noisy&#8217; Quarterly Results: 5 Analysts Weigh In On &#8216;Compelling Levers Of Improvement&#8217; For 2025</a>.</li>
</ul>

Healthcare investors are expecting Republican presidential nominee Donald Trump <a href="https://www.benzinga.com/insights/analyst-ratings/24/06/39499483/what-analysts-are-saying-about-cigna-group-stock">to ease regulations</a> on Medicare Advantage if the former president wins and returns to the White House.
Under the Biden administration, the Centers for Medicare &amp; Medicaid Services has hardened its stance on the program after it faced criticism for insurers overbilling the government and denying care to seniors too many times, the Wall Street Journal <a href="https://www.wsj.com/health/healthcare/would-trump-ease-up-on-medicare-wall-street-thinks-so-6e9ac0c0?mod=lead_feature_below_a_pos1">reported</a>.
Republicans tend to favor privatizing government services and have been friendlier to Medicare Advantage plans, a trend that investors are betting could continue under a second Trump administration.&nbsp;
Also Read: <a href="https://www.benzinga.com/news/earnings/24/07/39814804/unitedhealth-analysts-boost-their-forecasts-following-upbeat-earnings">UnitedHealth Analysts Boost Their Forecasts Following Upbeat Earnings</a>
Regulatory easing on Medicare Advantage could also rekindle talks on possible mergers between health insurers. The Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) and Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>) have discussed merging, but they backed away from the deal over antitrust issues and worries over Medicare, the Journal reported in November.
Price Action: The health insurance sector gave mixed results on Wall Street. United Healthcare Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) gained 4.44% to $573.28, while Elevance Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>) dropped 5.95% to $520.21 and Cigna rose 1.49% to $344.76 on Wednesday.
Exchange-traded funds that hold health insurer stocks, however, trended upward.
<ul>
<li>iShares U.S. Healthcare Providers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHF#NYSE">IHF</a>) edged up 0.11%</li>
<li>The Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) went up 0.45% </li>
<li>Global X Dow 30 Covered Call &amp; Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DYLG#NYSE">DYLG</a>) inched up 0.25%</li>
<li>SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) gained 0.55%</li>
<li> iShares U.S. Healthcare ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYH#NYSE">IYH</a>) ticked up 0.33%.</li>
</ul>
Read Now:
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<li><a href="https://www.benzinga.com/insights/analyst-ratings/24/07/39780960/what-analysts-are-saying-about-humana-stock">What Analysts Are Saying About Humana Stock</a></li>
</ul>
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ALHC

Shares of health insurers are trading higher in sympathy with UnitedHealth, which gained following strong Q2 earnings.

Shares of several health insurance stocks are trading higher following the attempted assassination of Donald Trump, which has lifted stocks that could benefit from a Trump presidency on Monday.

The U.S. Federal Trade Commission (FTC) recently highlighted the significant influence of pharmacy benefit managers (PBMs) on drug prices due to market consolidation. This trend raises critical questions about the future of the cannabis industry, especially if cannabis is federally legalized.
<h3>The Role Of PBMs And Market Influence</h3>
PBMs, such as UnitedHealth Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>)&#39;s Optum, CVS Health (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvs#NYSE">CVS</a>)&#39;s CVS Caremark and Cigna (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ci#NYSE">CI</a>)&#39;s Express Scripts, negotiate discounts, create medication lists covered by insurance and reimburse pharmacies.
The FTC&#39;s interim report<a href="https://www.cnbc.com/2024/07/09/middlemen-have-outsized-influence-on-us-drug-prices-due-to-market-consolidation-ftc-says.html"> revealed </a>that these three PBMs manage 79% of U.S. prescription drug claims, consolidating their power and impacting drug prices and accessibility.
<h3>Impact On Cannabis With Federal Legalization</h3>
The consolidation seen in the pharmaceutical industry provides a cautionary tale for the cannabis sector. Roy Bingham, CEO of BDSA, projects the U.S. cannabis market will reach $46 billion by 2028, driven by the expansion of adult-use markets and new regulated markets.
The <a href="https://www.benzinga.com/markets/cannabis/24/05/38881456/bidens-greenlight-what-to-know-about-fed-regulated-marijuana-markets-legal-circuits-and-complian">rescheduling of cannabis</a> to Schedule III is expected to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38803783/will-pharma-and-healthcare-have-competitive-edge-in-cannabis-post-rescheduling-data">open new avenues</a> for medical research and investment, potentially leading to pharmaceutical interest in cannabinoids.
<h3>Pharmaceutical Investment In Cannabis</h3>
Pharmaceutical companies like Jazz Pharmaceuticals (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jazz#NASDAQ">JAZZ</a>) and AbbVie (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abbv#NYSE">ABBV</a>) have already invested in cannabis-based products, such as Epidiolex and Marinol. If cannabis is federally legalized, these companies could increase their investment in cannabinoid research, leveraging their existing infrastructure and financial resources.
This could lead to further consolidation, similar to the current pharmaceutical landscape, where major players dominate the market.
<h3>Economic And Operational Impacts</h3>
Rescheduling cannabis to Schedule III is also expected to alleviate tax burdens on cannabis businesses, injecting more capital into the industry. This financial relief could accelerate research and development, attracting healthcare and pharmaceutical companies.
However, the shift would also bring stricter regulations, requiring controlled distribution by licensed pharmacists, potentially mirroring the current PBM model.
Read Also:&nbsp;<a href="https://www.benzinga.com/markets/cannabis/24/05/38905472/cannabis-meets-prescription-drugs-steroids-and-ketamine-in-schedule-iii-what-it-means-key-stocks">Cannabis Meets Prescription Drugs, Steroids And Ketamine In Schedule III: What It Means, Key Stocks To Watch</a>
<h3>Trends And Challenges In The Cannabis Industry</h3>
The cannabis industry is <a href="https://www.benzinga.com/markets/cannabis/22/10/29305823/as-us-cannabis-sales-decline-this-analyst-predicts-more-consolidation-who-will-benefit">already experiencing consolidation</a>. Analysts like Pablo Zuanic have noted a decline in cannabis sales across several states, leading to further industry consolidation. Larger, well-capitalized multi-state operators are likely to benefit, creating a market environment where a few dominant players control significant market share.
For example, in <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37971495/californias-weed-sales-decline-market-ripe-for-consolidation-biggest-companies-like">California</a>, the cannabis sector is experiencing consolidation amid declining sales, as noted by<a href="https://www.benzinga.com/topic/pablo-zuanic"> Zuanic</a>, senior equity research analyst at Zuanic &amp; Associates.
Despite a stable number of licensed storefronts, sales dropped 5% sequentially to $1.05 billion year-over-year in Q4 2023, with taxable sales down 8% to $1.25 billion.
Early 2024 figures show a continuing downturn, challenging retailers further. While wholesale prices have risen, retailer margins have tightened, reducing profitability. Despite these challenges, leading brands have established significant moats and expanded into other states through licensing and direct investments.
The consolidation trends in the <a href="https://www.benzinga.com/general/biotech/24/04/38213643/functional-cannabis-with-pharma-nanotech-how-kanhafx-boosts-cannabinoid-delivery-and-market-share">pharmaceutical industry </a>offer a glimpse into a possible future for the cannabis sector.
Federal legalization of cannabis could lead to increased pharmaceutical investment and further consolidation, creating a market dominated by a few large players.
Read Next:<a href="https://www.benzinga.com/markets/cannabis/21/12/24574979/how-pfizer-is-getting-into-cannabis-with-6-7b-arena-pharma-deal">&nbsp;How Pfizer Is Getting Into Cannabis With $6.7B Arena Pharma Deal</a>
These issues will be a hot topic&nbsp;at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the&nbsp;industry. Hear directly from top executives, investors, advocates, and policymakers.&nbsp;<a href="https://www.eventbrite.com/e/benzinga-capital-conference-cannabis-fall-2024-tickets-858948065787?aff=oddtdtcreator" rel="noreferrer noopener" target="_blank">Get your tickets now</a>&nbsp;before prices go up by following&nbsp;<a href="https://www.eventbrite.com/e/benzinga-capital-conference-cannabis-fall-2024-tickets-858948065787?aff=oddtdtcreator" rel="noreferrer noopener" target="_blank">this link</a>.
Photo: AI-Generated Image.&nbsp;

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for &#39;earnings whispers&#39; or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn&#39;t make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider HCA Healthcare?
Now that we understand what the ESP is and how beneficial it can be, let&#39;s dive into a stock that currently fits the bill. HCA Healthcare (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hca#NYSE">HCA</a>) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $5.32 a share, just 13 days from its upcoming earnings release on July 23, 2024.
HCA has an Earnings ESP figure of +7.1%, which, as explained above, is calculated by taking the percentage difference between the $5.32 Most Accurate Estimate and the Zacks Consensus Estimate of $4.97. HCA Healthcare is one of a large database of stocks with positive ESPs.
HCA is part of a big group of Medical stocks that boast a positive ESP, and investors may want to take a look at Cigna (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ci#NYSE">CI</a>) as well.
Cigna is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on August 1, 2024. CI&#39;s Most Accurate Estimate sits at $6.48 a share 22 days from its next earnings release.
Cigna&#39;s Earnings ESP figure currently stands at +0.94% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $6.42.
Because both stocks hold a positive Earnings ESP, HCA and CI could potentially post earnings beats in their next reports.
<a href="https://www.zacks.com/stock/news/2299067/how-to-find-strong-medical-stocks-slated-for-positive-earnings-surprises?cid=CS-BENZ-FT-tale_of_the_tape|zacks_education_earnings_esp-2299067">To read this article on Zacks.com click here.</a>

How to Find Strong Medical Stocks Slated for Positive Earnings Surprises

The Federal Trade Commission is preparing to sue the largest three pharmacy-benefit managers over their tactics for negotiating prices for drugs including insulin, after a two-year investigation into whether the companies steer patients away from less-expensive medicines.
 <a href="https://www.wsj.com/health/pharma/ftc-to-sue-drug-managers-over-insulin-prices-b46af71f?mod=latest_headlines" title="https://www.wsj.com/health/pharma/ftc-to-sue-drug-managers-over-insulin-prices-b46af71f?mod=latest_headlines">https://www.wsj.com/health/pharma/ftc-to-sue-drug-managers-over-insulin-prices-b46af71f?mod=latest_headlines</a>

Biotech

'FTC to Sue Drug Managers over Insulin Prices' - WSJ

Cantor Fitzgerald analyst Sarah James reiterates Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) with a Overweight and maintains $400 price target.

Reiteration

Cantor Fitzgerald Reiterates Overweight on Cigna Group, Maintains $400 Price Target

Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) has outperformed the market over the past 15 years by 6.22% on an annualized basis producing an average annual return of 18.88%. Currently, Cigna Group has a market capitalization of $94.17 billion. 
Buying $100 In CI: If an investor had bought $100 of CI stock 15 years ago, it would be worth $1,351.94 today based on a price of $331.50 for CI at the time of writing.
<h3>Cigna Group's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720620038_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $100 In This Stock 15 Years Ago, You Would Have $1,400 Today

The U.S. Federal Trade Commission (FTC) has highlighted significant concerns regarding consolidating pharmacies and health insurance companies, focusing on the influence of a few dominant pharmacy benefit managers (PBMs) on prescription drug prices.
An <a target="_blank" href="https://www.ftc.gov/news-events/news/press-releases/2024/07/ftc-releases-interim-staff-report-prescription-drug-middlemen" rel="noreferrer noopener">interim report</a> suggests that these PBMs have amassed considerable profits at the expense of independent pharmacies and consumers.
The interim staff report, part of an ongoing inquiry launched in 2022 by the FTC, details how increasing vertical integration and concentration has enabled the six largest PBMs to manage nearly 95% of all prescriptions filled in the U.S.
Related: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/05/38943653/unitedhealths-optumrx-unveils-new-transparent-drug-pricing-initiative-for-2024" rel="noreferrer noopener">UnitedHealth&#8217;s OptumRx Unveils New Transparent Drug Pricing Initiative for 2024</a>.
The FTC&#8217;s <a target="_blank" href="https://www.ftc.gov/news-events/news/press-releases/2024/07/ftc-releases-interim-staff-report-prescription-drug-middlemen" rel="noreferrer noopener">report</a> reveals that the three largest PBMs—UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) through its Optum unit, CVS Health Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) via CVS Caremark, and Cigna Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) through Express Scripts—manage 79% of U.S. prescription drug claims.
The other three players include Humana Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>), MedImpact, and 19 BlueCross BlueShield plans.
Over the past 20 years, pharmacy benefit services have become increasingly concentrated. In 2004, the report added that the top three PBMs served a combined 190 million people and managed 52% of prescription drug claims.
&#8220;The FTC&#8217;s interim <a target="_blank" href="https://www.ftc.gov/system/files/ftc_gov/pdf/pharmacy-benefit-managers-staff-report.pdf" rel="noreferrer noopener">report</a> lays out how dominant pharmacy benefit managers can hike the cost of drugs—including overcharging patients for cancer drugs,&#8221; said FTC Chair Lina Khan.
&#8220;The report also details how PBMs can squeeze independent pharmacies that many Americans—especially those in rural communities—depend on for essential care.&#8221;
Evidence suggests that as PBMs become more concentrated, they gain leverage to establish contracts that disadvantage smaller, independent pharmacies.
These contracts often lack transparency regarding total payment amounts, making it difficult for pharmacists to determine compensation.
The FTC report noted that PBMs and brand drug manufacturers negotiate prescription drug rebates, sometimes explicitly agreeing to limit access to cheaper generic and biosimilar alternatives.
Evidence indicates that these agreements can result in excluding lower-cost competitor drugs from PBM formularies in exchange for higher rebates from manufacturers.
The report also disclosed how companies often sign rebate contracts with drug manufacturers, where manufacturers pay Pharmacy Benefit Managers (PBMs) for favorable formulary placement and administrative fees.
Traditionally, PBMs negotiated these contracts directly, but recently, the top three PBMs have created separate entities, known as rebate aggregators, to handle negotiations for them and their clients.
These rebates significantly reduce the net prices for payers compared to the point-of-sale prices that affect patient cost-sharing and deductibles at pharmacies.
Price Action: CVS shares are trading higher by 1.12% at $57.53 at the last check on Tuesday.
Photos via Shutterstock

Media

FTC Investigation Uncovers Anti-Competitive Practices By Handful Of Pharmacy Benefit Managers, Including CVS Health, UnitedHealth

Cigna Group's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) short percent of float has risen 16.38% since its last report. The company recently reported that it has 3.82 million shares sold short, which is 1.35% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.99 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Cigna Group Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720459811_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Cigna Group has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Cigna Group's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cigna Group's peer group average for short interest as a percentage of float is 10.38%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Cigna Group's Recent Short Interest

Investors with a lot of money to spend have taken a bearish stance on Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CI, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 8 uncommon options trades for Cigna Group.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 50%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $455,917, and 3 are calls, for a total amount of $107,055.
<h3>Projected Price Targets</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $300.0 and $340.0 for Cigna Group, spanning the last three months.
<h3>Analyzing Volume &amp; Open Interest</h3>
In terms of liquidity and interest, the mean open interest for Cigna Group options trades today is 434.14 with a total volume of 842.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Cigna Group's big money trades within a strike price range of $300.0 to $340.0 over the last 30 days.
<h3>Cigna Group 30-Day Option Volume &amp; Interest Snapshot</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720195285_0.png" alt="Options Call Chart" />
<h3>Noteworthy Options Activity:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>CI</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$25.0</td>
<td>$24.1</td>
<td>$25.0</td>
<td>$340.00</td>
<td>$250.0K</td>
<td>1.0K</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>CI</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$12.1</td>
<td>$11.6</td>
<td>$11.9</td>
<td>$300.00</td>
<td>$69.0K</td>
<td>867</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>CI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>07/12/24</td>
<td>$4.2</td>
<td>$3.7</td>
<td>$3.7</td>
<td>$317.50</td>
<td>$55.1K</td>
<td>1.0K</td>
<td style="text-align: right;">299</td>
</tr>
<tr>
<td>CI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>07/12/24</td>
<td>$3.8</td>
<td>$3.7</td>
<td>$3.7</td>
<td>$317.50</td>
<td>$54.5K</td>
<td>1.0K</td>
<td style="text-align: right;">529</td>
</tr>
<tr>
<td>CI</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$43.0</td>
<td>$41.5</td>
<td>$41.5</td>
<td>$330.00</td>
<td>$41.5K</td>
<td>13</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>

<h3>About Cigna Group</h3>
Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense, and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.
<h3>Cigna Group's Current Market Status</h3>
<ul>
<li>With a volume of 437,257, the price of CI is down -2.21% at $318.24. </li>
<li>RSI indicators hint that the underlying stock may be oversold.</li>
<li>Next earnings are expected to be released in 27 days.</li>
</ul>
<h3>Professional Analyst Ratings for Cigna Group</h3>
Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $400.0.
<ul>
<li>Reflecting concerns, an analyst from Piper Sandler lowers its rating to Overweight with a new price target of $400.</li>
<li>An analyst from Cantor Fitzgerald has revised its rating downward to Overweight, adjusting the price target to $400. </li>
</ul>
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Cigna Group with <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> for real-time alerts.

Options

Decoding Cigna Group's Options Activity: What's the Big Picture?

Piper Sandler has initiated coverage on Cigna Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>), a diversified managed care and healthcare delivery organization specializing in commercial insurance markets and <a target="_blank" href="https://www.benzinga.com/quote/CI" rel="noreferrer noopener">pharmacy services</a>.
The analyst writes, &#8220;We believe Cigna has a unique and defensible leadership position in the fast-growing specialty pharmacy market which, together with the company&#8217;s insurance segment and core PBM business, should support LT-adjusted EPS growth at a 10-14% CAGR.&#8221;
Related: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38589861/cigna-crushes-q1-estimates-revenue-soars-with-evernorths-explosive-growth" rel="noreferrer noopener">Cigna Crushes Q1 Estimates: Revenue Soars With Evernorth&#8217;s Explosive Growth</a>.
The company&#8217;s Cigna Healthcare and Evernorth Health Services businesses complement one another and empower Cigna to continue delivering premium adjusted EPS growth against the LT target of 10-14% per year, the Piper analyst writes.
Cigna grew adjusted EPS at a 13%+ CAGR from 2013-2023, and the company is expected to maintain its track record of consistent execution against industry-leading earnings growth targets over the next decade.
Piper adds, &#8220;We believe CI will focus on organic earnings growth until we know the outcome of the 2024 presidential election and get a better understanding of the antitrust/ MA regime for the next 4 years.&#8221;
Piper initiates with an Overweight rating and <a target="_blank" href="https://www.benzinga.com/quote/CI/analyst-ratings" rel="noreferrer noopener">a price target of $400</a>.
A 12.5x multiple is appropriate as it assigns an in-line/slight-premium multiple to the comp group, which Piper writes is justified by Cigna&#8217;s above-average EPS CAGR.
The analyst also writes that selling the medicare advantage business to HCSC will be a positive catalyst for Cigna when it closes in the <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/01/36474237/cignas-medicare-business-sale-health-care-service-could-scoop-the-business" rel="noreferrer noopener">first quarter of 2025</a>.
Piper says Cigna&#8217;s strong position in the $400 billion specialty market is encouraging. While many are tackling the drug pricing crisis, Cigna is at the forefront.
Specialty services drive growth for Evernorth, which is supported by Cigna&#8217;s transparent PBM business. We are confident in Evernorth&#8217;s 5-8% long-term growth forecast.
Read Next: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/04/38468317/arthritis-patients-cignas-evernorth-to-offer-humira-biosimilar-at-no-out-of-pocket-cost" rel="noreferrer noopener">Arthritis Patients &#8211; Cigna&#8217;s Evernorth To Offer Humira Biosimilar At No Out-of-Pocket Cost</a>.
Price Action: CI shares are down 0.41% at $337.41 at the last check on Wednesday.
Photo via Shutterstock

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Cigna Group

Cigna Group (CI) Forecast

Cigna Group (NYSE:CI) Stock, Quote.Headers.trade-ideas