In a market environment fraught with challenges, Cigna Corporation (NYSE:CI)'s stock has touched a 52-week low, dipping to $288.86. This price point marks a notable trough for the $80 billion healthcare services provider over the past year, with an 8.9% decline just last week. According to InvestingPro analysis, the stock's RSI indicates oversold territory, suggesting potential value at current levels. Despite the low, Cigna's performance shows resilience, maintaining a 43-year dividend payment streak with 13.8% dividend growth in the last year. Management's aggressive share buybacks signal confidence in the company's future. InvestingPro subscribers can access 12 additional exclusive insights and a comprehensive Pro Research Report, helping investors make more informed decisions about this healthcare leader's potential recovery.
In other recent news, significant developments have been observed in the healthcare sector. UnitedHealth Group (NYSE:UNH) experienced a share decrease following the tragic death of company executive Brian Thompson, while facing public backlash over industry practices. Meanwhile, Cigna Corporation has been the focus of analysts' attention. Piper Sandler raised Cigna's target to $394, citing the company's strong third-quarter performance and projected 10% earnings per share (EPS) growth for 2025. On the other hand, Jefferies reduced Cigna's target to $406, acknowledging challenges but also potential for improvement in the company's Evernorth business.
In legislative news, potential legislation targeting pharmacy benefit managers (PBMs) has resulted in a dip in healthcare stocks. The proposed bill aims to compel PBMs to sell off the pharmacies they own, a significant intervention in their operational model. Leerink Partners and Evercore ISI commented on the bill's low likelihood of passage but highlighted its aggressive stance against the PBM industry.
Lastly, Cigna Group reported a robust third-quarter revenue of $63.7 billion and an adjusted EPS of $7.51. The company anticipates a minimum of 10% EPS growth for 2025, with this optimism reinforced by new client relationships and biosimilar offerings. Despite facing challenges such as reduced net investment income and overhead costs from the Medicare sale, Cigna maintains a full-year EPS outlook of at least $28.40 for 2024.
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