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Why Has Cigna’s Stock Rocketed 50% In The Last 30 days?

Cigna (NYSE: CI) is a health services company that offers Medicare and Medicaid products and health, life and accident insurance coverage to US citizens. The company has seen its stock price rise by more than 50% in last one month. The rally is primarily driven by the company’s strong Q3 FY’19 results (announced in early October), with adjusted net profit per share standing at $4.54 – beating consensus by $0.18. Revenues also topped analyst estimates thanks to strong contribution from all its divisions. The company also raised its guidance for FY’19, indicating that net income for the year would grow by between 18% to 20% year-over-year.

A key factor behind the rally was also the fact that the strong results quashed any concerns investors had about the potential benefits of Cigna’s acquisition of Express Scripts late last year. Notably, Cigna’s stock breached the $200-mark recently for the first time since the company finalized the Express Scripts acquisition last December.

We step back from these recent swings to review Cigna’s performance over the last few years, as a context for what might come next. Our interactive dashboard – Why has Cigna’s stock rallied 50% in the last 30 days? – reviews the near term reasons and the big picture.

The context for the last few years:

A closer look At Cigna’s Total Revenues over the last few years and the outlook,

Total Revenues for Cigna significantly increased from $41.6 Bil in 2017 to $48.6 Bil in 2018; an increase of 16.7%.

This compares with Total Revenues growth of:

  • 4.94% in 2017

We expect Total Revenues growth to be 185.6% in 2019. (On account of acquisition of Express Scripts)

A closer look At Cigna Corporation Total Expenses over the last few years and the outlook.

Total Expense for Cigna increased from $38 Bil in 2017 to $45 Bil in 2018; an increase of 18.4%.

This compares with Total Expense growth of:

  • 3.6% in 2017

We expect Total Expense growth to be 196.6% in 2019. (On account of acquisition of Express Scripts).

How does Cigna’s Revenue Growth compare with rivals?

For more information on how Cigna Corporations’ revenue growth compares with Anthem, Humana and UnitedHealth Group Incorporated, view our interactive dashboard analysis.

How has Cigna’s EBT trended?

EBT for Cigna decreased marginally by 0.693% from $3.61 Bil in 2017 to $3.58 Bil in 2018.

We expect EBT to increase by 47.7% to $5.3 Bil in 2019.

How has Cigna’s Net Income and EPS trended?

For more details about Cigna’s Net Income and EPS, view our interactive dashboard analysis.

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