Cigna Group’s Performance: Analyzing Recent Trends and Market Position
With a market capitalization of $84.8 billion, The Cigna Group (CI) stands as a prominent global health company, operating primarily through its two main growth platforms: Evernorth Health Services and Cigna Healthcare. Based in Bloomfield, Connecticut, Cigna provides insurance and associated products and services across the healthcare landscape.
Firms valued at $10 billion or more are categorized as “large-cap” stocks, a classification that Cigna fits seamlessly. The company boasts sales operations in over 30 markets and jurisdictions, serving approximately 182 million customer relationships worldwide, which helps address a variety of challenges in the healthcare system.
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Recently, Cigna’s stock has seen a decline of 16.4% from its 52-week high of $370.83. In the past three months, the Cigna Group’s stock has fallen 3.9%, underperforming compared to the iShares Global Healthcare ETF (IXJ), which has risen by 3% during the same period.
In broader terms, Cigna shares have decreased by 6.9% over the last year, while the IXJ has experienced a 3.2% increase in the same timeframe. However, it’s worth noting that Cigna has realized a gain of 12.2% year-to-date (YTD), surpassing the IXJ’s 9.6% rise.
Trading behavior indicates that Cigna has been below its 50-day and 200-day moving averages since October of last year, with some notable fluctuations in its price. Furthermore, despite not meeting Wall Street’s expectations on January 30, CI shares managed a 3.9% increase the following day, largely attributed to adjusted revenues which soared 28.4% year-over-year to reach $65.7 billion, exceeding consensus estimates. Alongside this, Cigna raised its quarterly cash dividend by 8% to $1.51 beginning in fiscal 2025, further bolstering investor confidence.
When comparing performance to its competitor, Elevance Health, Inc. (ELV), Cigna has outperformed. While ELV’s shares have increased by 7.7% on a YTD basis, they have also dipped 20.2% over the past year, trailing Cigna’s performance.
Due to Cigna’s strong YTD overall performance, analysts hold a positive outlook on the company. Among 22 analysts monitoring the stock, there is a consensus rating of “Strong Buy,” and it is currently trading below the average price target of $365.24.
On the date of publication, Sohini Mondal did not hold any positions in the securities mentioned in this article. All information and data provided herein are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
