Balboa Wealth Partners Increases Stake in Cigna Group by 16.4%

Balboa Wealth Partners has increased its holdings in Cigna Group (NYSE: CI) by 16.4% during the second quarter of 2023, according to a recent Form 13F filing with the Securities and Exchange Commission. The investment firm now owns 944 shares of the health services provider, valued at approximately $312,000 at the end of the quarter after acquiring an additional 133 shares.

This move reflects a broader trend among institutional investors, with several hedge funds adjusting their positions in Cigna Group. For instance, Price T Rowe Associates Inc. increased its stake by 10.0% in the first quarter, resulting in ownership of 12,056,806 shares worth around $3.97 billion after acquiring an additional 1,094,327 shares. Similarly, Massachusetts Financial Services Co. raised its position by 0.9%, owning 11,654,993 shares valued at $3.83 billion following the acquisition of 98,715 shares.

Moreover, Dodge & Cox enhanced its position by 1.3%, now holding 8,889,733 shares valued at approximately $2.92 billion. GQG Partners LLC significantly increased its stake by 21.5%, acquiring 865,092 shares, bringing its total to 4,886,674 shares worth around $1.61 billion. Valeo Financial Advisors LLC made a remarkable leap, raising its position by an astounding 86,071.1%, now owning 3,475,282 shares valued at $1.15 billion. Collectively, institutional investors and hedge funds hold approximately 86.99% of Cigna Group’s stock.

Analyst Ratings and Stock Performance

Recent analyst reports provide a mixed outlook for Cigna Group. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on October 3, 2023. In contrast, Guggenheim reiterated a “buy” rating with a revised price target of $350.00, down from $388.00. Robert W. Baird set a price target of $372.00, while Wells Fargo & Company raised its target from $340.00 to $354.00, maintaining an “equal weight” rating.

As of now, two analysts have issued a “Strong Buy” rating, sixteen have given a “Buy” rating, and three have recommended holding the stock. According to MarketBeat.com, the consensus rating is a “Moderate Buy” with a target price of $369.89.

Shares of Cigna Group opened at $307.03 on October 3, 2023, reflecting a 2.6% increase. The company has experienced volatility in the past year, with a low of $256.89 and a high of $350.00. Cigna Group currently holds a market capitalization of $81.96 billion, a P/E ratio of 16.76, and a debt-to-equity ratio of 0.65.

Recent Earnings and Insider Activity

Cigna Group reported its quarterly earnings on July 31, 2023. The company achieved an earnings per share (EPS) of $7.20, surpassing the consensus estimate of $7.15 by $0.05. The company posted revenues of $67.13 billion, exceeding expectations of $62.61 billion, marking an 11.0% increase year-over-year.

In terms of future performance, Cigna Group has guided for an EPS of $29.60 for the fiscal year 2025. Analysts forecast an EPS of $29.77 for the current fiscal year.

Insider activity has also been notable. On August 15, 2023, insider Nicole S. Jones sold 28,526 shares at an average price of $300.00, totaling $8.56 million. Following this transaction, Jones owned 25,648 shares valued at approximately $7.69 million. Additionally, on October 3, 2023, insider Brian C. Evanko sold 5,368 shares at the same average price, resulting in a transaction of approximately $1.61 million.

Currently, insiders hold 0.70% of the company’s stock, indicating that the majority of shares remain with institutional investors.

Cigna Group, through its subsidiaries, provides various insurance and related services across the United States. Its Evernorth Health Services segment focuses on coordinated health services, including pharmacy benefits and care management solutions for health plans and employers.