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Cigna stock soars to all-time high, reaches $365.83

Published 03/09/2024, 14:46
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Cigna Corporation (NYSE:CI) has reached an impressive milestone, with its stock price soaring to an all-time high of $365.83. This peak reflects a significant achievement for the health services organization, marking a notable point in its financial performance. Over the past year, Cigna has witnessed a substantial growth in its stock value, with a 1-year change showing an increase of 31.92%. This surge underscores the company's robust financial health and the positive reception of its strategic initiatives by investors. The all-time high serves as a testament to Cigna's strong market position and its potential for continued growth in the competitive healthcare sector.

In other recent news, Cigna Group has reported a significant rise in its second-quarter revenue and adjusted earnings per share for 2024. The company disclosed a total revenue of $60.5 billion, marking a 25% growth compared to the previous year, and an adjusted earnings per share of $6.72, up by 10% from the preceding year. Cigna's Evernorth Health Services and Care Services segments saw notable growth, with Evernorth's adjusted income increasing by 12%. The company's foundational pharmacy benefit services business, Express Scripts (NASDAQ:ESRX), also showed strong client demand and innovation.

In addition to these developments, Cigna Healthcare is preparing to divest its Medicare Advantage business by the first quarter of 2025. The company has also reiterated its commitment to negotiating affordable pharmaceutical prices and expressed confidence in meeting its growth targets for 2024 and beyond. Furthermore, Cigna anticipates an average annual adjusted EPS growth of 10% to 14% and expects a cumulative operating cash flow of $60 billion over the next five years. These recent developments indicate Cigna Group's continued commitment to growth and innovation in the healthcare sector.

InvestingPro Insights

Cigna Corporation's (CI) recent ascent to an all-time high stock price of $365.83 is not only a reflection of past performance but also sets a stage for future expectations. The company's aggressive share buyback program, as noted in one of the InvestingPro Tips, signifies management's confidence in the company's valuation and future prospects. Additionally, Cigna's consistent dividend growth, with dividends increasing for 43 consecutive years, highlights its commitment to returning value to shareholders.

From an investment standpoint, Cigna's current market capitalization stands at $101.66 billion, and its Price/Earnings (P/E) ratio is 28.06, which adjusts to a more attractive 18.93 when considering the last twelve months as of Q2 2024. This suggests a potential undervaluation relative to earnings. Furthermore, the company's revenue growth of 16.11% over the last twelve months, coupled with a strong revenue growth of 24.4% in Q2 2024, indicates robust business expansion.

Investors should note that Cigna is trading near its 52-week high, at 98.93% of this peak value, which aligns with the recent all-time high stock price mentioned in the article. The company's solid dividend yield of 1.55% and a 13.82% dividend growth rate in the last twelve months offer additional incentives for income-focused investors. For those considering adding Cigna to their portfolio, there are additional InvestingPro Tips available, providing deeper insights into the company's performance and valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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