Beyond The Numbers: 8 Analysts Discuss Cigna Stock

During the last three months, 8 analysts shared their evaluations of Cigna CI, revealing diverse outlooks from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $404.62, a high estimate of $438.00, and a low estimate of $384.00. This upward trend is apparent, with the current average reflecting a 0.37% increase from the previous average price target of $403.14.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Cigna among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cigna. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cigna compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Cigna's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Cigna's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Cigna analyst ratings.

Discovering Cigna: A Closer Look

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense, and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.

Key Indicators: Cigna's Financial Health

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Cigna's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 24.4%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Cigna's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 2.56%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cigna's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.75% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Cigna's ROA stands out, surpassing industry averages. With an impressive ROA of 1.0%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Cigna's debt-to-equity ratio is below the industry average. With a ratio of 0.77, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.