Groupe la Francaise Increases Stake in Cigna Group, Invests $5.3 Million

Groupe la Francaise has acquired a new position in Cigna Group (NYSE: CI), according to the latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC). This investment, made in the second quarter, involved the purchase of 16,171 shares valued at approximately $5.32 million. This move highlights the growing interest among institutional investors in the health services provider.

Several other notable investors have also adjusted their stakes in Cigna Group recently. Flaharty Asset Management LLC established a new position in the first quarter worth $28,000. Similarly, 1248 Management LLC and Solstein Capital LLC each acquired stakes valued at approximately $29,000 during the same period. Chilton Capital Management LLC also entered the fold with a new position valued at $30,000. Notably, Activest Wealth Management significantly increased its stake by 360% in the first quarter, bringing its total holdings to 92 shares, valued at $30,000. Currently, institutional investors and hedge funds own 86.99% of Cigna Group’s stock.

Cigna Group’s stock performance has been closely monitored. On Thursday, it opened at $270.45. The stock has a fifty-day moving average of $283.95 and a two-hundred-day average of $296.51. With a market capitalization of $72.24 billion, Cigna Group has a price-to-earnings (P/E) ratio of 11.93 and a PEG ratio of 0.99. The company reached a twelve-month low of $239.51 and a high of $350.00.

On October 30, 2023, Cigna Group released its latest quarterly earnings, reporting earnings per share (EPS) of $7.83, surpassing analysts’ expectations of $7.64 by $0.19. The firm achieved revenues of $69.57 billion, exceeding the consensus estimate of $66.40 billion. The health services provider recorded a return on equity of 18.80% and a net margin of 2.29%. Year-over-year, revenue increased by 9.5%, compared to $7.51 EPS in the same quarter last year. Cigna Group has set its full-year 2025 guidance at $29.60 EPS, with analysts forecasting an EPS of $29.77 for the current fiscal year.

In addition to its financial performance, Cigna Group recently announced a quarterly dividend of $1.51, scheduled for payment on December 18, 2023. Stockholders of record as of December 4, 2023 will receive this dividend, which translates to an annualized dividend of $6.04 and a yield of 2.2%. The ex-dividend date is also set for December 4, 2023, with a dividend payout ratio of 26.64%.

In related news, insider Brian C. Evanko sold 5,368 shares of Cigna Group on October 3, 2023, at an average price of $300.00, amounting to a total transaction of $1.61 million. Following this sale, Evanko retained 51,182 shares valued at approximately $15.35 million, marking a 9.49% reduction in ownership. CEO David Cordani also engaged in stock activity, purchasing 4,134 shares on November 3, 2023, at an average price of $241.88 per share for a total of $999,931.92. Post-purchase, Cordani holds 157,935 shares valued at approximately $38.20 million, representing a 2.69% increase in position. Company insiders collectively own 0.70% of Cigna Group’s stock.

Recent analyst reports have provided mixed perspectives on Cigna Group. Zacks Research downgraded the stock from a “hold” rating to a “strong sell” on November 3, 2023. Meanwhile, JPMorgan Chase & Co. adjusted its target price from $428.00 to $375.00, maintaining an “overweight” rating. Other firms, including Wolfe Research and Cantor Fitzgerald, have also revised their price targets downward. Despite this, one analyst has issued a “Strong Buy” rating, while 19 have given a “Buy” rating, three have rated it as “Hold,” and one has assigned a “Sell” rating. According to data from MarketBeat.com, Cigna Group has an average rating of “Moderate Buy” with a price target of $334.45.

Cigna Group, along with its subsidiaries, offers a wide range of insurance and related services across the United States. Its Evernorth Health Services segment specializes in delivering coordinated health services, including pharmacy benefits and care management solutions for health plans, employers, government entities, and healthcare providers.