That sounds great, except the Trump administration is trying to declare the act unconstitutional. While United Healthcare has walked away from the marketplaces created by the Affordable Care Act, Cigna has gone into more of them for 2021. Tim Wentworth, who had been running Express Scripts, will run the new unit. The result is Evernorth, which also includes Cigna’s specialty pharmacy, Accredo, along with computer services for customers and employees. Express Scripts needed that merger after United Healthcare bought rival Catamaran for $12.8 billion, moving its own prescription business to it. Instead of getting a merger of equals, Cigna spent $54 billion on Express Scripts.

“Each party must bear the losses it suffered as a result of their star-crossed venture,” wrote Delaware judge J. The resulting lawsuits were cleared in August with no damages awarded on either side. But antitrust officials blocked the deal. In 2015, Cigna tried to merge with rival Anthem (NASDAQ: ANTM) to achieve United Healthcare’s scale. Left at the AltarĬigna’s history, however, leads me to worry about the long term. That would be very close to the June quarter, and could lead to the rush of investment analysts now expect. The consensus is for $4.24 per share on revenue of $39.14 billion. Analysts on Marketbeat are equally optimistic.Ĭigna is next due to report earnings on Oct. It now trades near $160.įive analysts follow Cigna stock at TipRanks, with four of them rating it a “buy.” Their average price target for the stock is almost $250 per share. Trefis called the stock attractive at $180/share in August.

The report says Cigna benefited from the pandemic due to lower medical costs, with patients delaying non-essential care.

The 7 Best Semiconductor Stocks to Buy TodayĪfter the report came out, analysts began pounding the table for Cigna.Ī Trefis analysis compared the stock favorably to CVS Health (NYSE: CVS), which owns Aetna.Cigna remains eighth in health premiums in the U.S., and has just 2% of the Medicare Advantage market. Much of the revenue came from Express Scripts. The second quarter report for Cigna was considered stellar. Cigna earned $1.8 billion, $4.73 per share, in the quarter ending in June, on revenue of $39.3 billion. Should you believe them? A Stellar Quarter

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