Why Is Cigna Stock Trading Higher Today?
Portfolio Pulse from Vandana Singh
Cigna Group (NYSE:CI) shares rose after the company ceased acquisition talks with Humana Inc (NYSE:HUM) due to price disagreements. Cigna announced a $10 billion increase in share repurchase authorization, planning to buy back at least $5 billion in stock by mid-2024, including an accelerated repurchase in Q1 2024. Despite the failed deal, Cigna remains focused on smaller acquisitions and reaffirmed its 2023 and 2024 earnings outlook. CI shares jumped 13.6% to $293.89, while HUM shares increased 1.95% to $491.00 in premarket trading.
December 11, 2023 | 1:47 pm
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POSITIVE IMPACT
Cigna's stock rose following the announcement of a $10 billion increase in share repurchase authorization and the termination of acquisition discussions with Humana.
Cigna's decision to increase its share repurchase authorization typically signals confidence in the company's financial health and future prospects, which can be viewed positively by investors. The termination of the acquisition talks with Humana removes uncertainty, allowing the company to focus on its buyback strategy and smaller acquisitions.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Humana's stock saw a slight increase after the acquisition talks with Cigna were discontinued.
Humana's stock increase is likely due to the market's reaction to the end of uncertainty regarding the potential acquisition by Cigna. The slight increase suggests a neutral to positive investor sentiment, as the company may now pursue other opportunities or strategies independently.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50