Friday, July 31, 2015

Cigna Q2

Cigna had their quarterly report on July 30th, and came in with strong revenues at $9.5 billion, which showed a 9% increase from a quarter ago.  Cigna also reported shareholders net income at $588 million or $2.26 per share, compared to $2.12 a share just a quarter a ago.  Cigna’s strong revenues are a result of their strong and effective efforts regarding their global strategy.  In other big news regarding Cigna, Athem’s acquisition has become official, the final deal of the for the acquisition of Cigna was for $103.4 in cash and .5152 ANTM shares for each of Cigna’s shares. Overall the deal was worth $54.2 billion, which would price Cigna at $188 a share.  This deal comes after months of negotiations between Cigna and Anthem, deals were rejected by Cigna for as high as $184 a share. As of 7/30/2015 Cigna is trading at $143.90, showing a 20% from our original purchase if the shares. After updating the model with the most recent quarterly numbers, the updated price target $169.16.

No comments: