Cigna Sets the Record Straight on Humana Merger Speculation
Clearing Up the Rumors
Cigna Group (NYSE:CI) has put an end to the speculation surrounding a potential merger with Humana Inc. (NYSE:HUM). In a recent announcement, the company confirmed that it is not pursuing a combination with Humana, citing its commitment to its established M&A criteria.
A Focus on Strategic Growth
Cigna’s officials will be meeting with investors and analysts over the next several weeks to reaffirm the company’s projected full-year 2024 consolidated adjusted EPS outlook of at least $28.40 per share and growth of at least 10% in 2025. This news comes on the heels of a strong third-quarter performance, with sales reaching $63.7 billion, a 30% year-over-year increase.
Driving Shareholder Value
The company’s adjusted income from operations for the third quarter of 2024 increased by 5%, driven by strong contributions from Evernorth Health Services. Cigna has demonstrated its commitment to delivering shareholder value through focused execution against stated operational and financial targets, as well as disciplined capital deployment. The company has repurchased $6 billion of stock year-to-date, including $1 billion in the fourth quarter, and expects to continue actively repurchasing shares in the fourth quarter and 2025.
A Bright Future Ahead
Cigna’s decision to sell its Medicare businesses, expected to close in the first quarter of 2025, will provide additional funds for share repurchase. With $5.3 billion remaining on its share repurchase authorization, the company is poised for continued growth and success. As a result, CI stock is up 7.89% at $345, while HUM stock is down 6.29% during the premarket session.
Staying Focused on Long-Term Goals
Despite recent challenges in the Medicare market, Cigna remains committed to its strategic objectives. By staying focused on its established M&A criteria and delivering shareholder value, the company is well-positioned for long-term success.
Leave a Reply