Latest Cigna Corp News and Updates
How Can Changing Demographics Impact Investors?
Changing demographics impact investors in many ways. The demand for bonds could increase, putting downward pressure on yields.
How Does Aetna Compare to Its Peers in Medical Care Ratio?
The medical care ratio of health insurance companies is calculated as the ratio of the total money spent in health care claims to premiums earned.
What’s UnitedHealth Group’s outlook for 2015?
It’s projected that UnitedHealth Group’s revenue and earnings growth in 2015 will be driven by the strong performance of the Optum segments.
Enrollments decreased in UnitedHealth’s international business
In the US, the private health insurance industry has been expanding its footprint in international markets. International markets are less penetrated and competitive.
UnitedHealth Group’s Optum segment: Earnings rose in 2014
UnitedHealth Group (UNH) operates Optum. It provides health services like health technology, health and well-being, and pharmacy services.
How Does UNH’s Valuation Look in October?
UnitedHealth Group is a leading managed healthcare firm in the United States.
Eminence Capital Reduces Position in Humana
During the fourth quarter of 2014, Eminence Capital lowered its stake in Humana (HUM). The company accounted for 1.33% of the fund’s 4Q14 portfolio.
Humana’s core business: The Medicare Advantage program
Humana’s total enrollment is mainly enrollments in the MA program, a substitute for the original Medicare program, via private insurance companies.
Why UnitedHealth Group Plans to Reduce Its Public Exchange Exposure
Given the high-risk profile of individual exchange enrollments, UnitedHealth Group has decided to offer plans only on a few public exchanges in 2017.
What Are Leon Cooperman’s Top Holdings?
In Q3, billionaire investor Leon Cooperman’s top five holdings were Fiserv, Alphabet, United Continental, Chimera Investment, and Cigna.
Is the Cigna–Anthem Merger a Setup?
The Cigna–Anthem merger deal will be subject to all sorts of headlines that will affect the spread. You can make a decent return trading around the position by keeping your head .
The Risk-to-Reward Ratio of the Cigna–Anthem Merger
If the Cigna–Anthem merger closes, you end up making about $35 a share. If the deal breaks, then you would have to cover at $52 a share.
Decoding Humana’s Revenue Stream in 2015
Humana reported revenues of about $54.3 billion in its 2015 results. This amounts to a 12% revenue growth in 2015, compared to ~$48.1 billion in 2014.
UnitedHealth Group Goes Ex-Dividend Today
UnitedHealth Group (UNH) has announced that its board of directors has authorized a cash dividend of $0.90 per share.
Allergan–Pfizer merger: What Does Pfizer Make besides Viagra?
The Allergan–Pfizer merger will change Pfizer’s domicile to Dublin, Ireland, and allow them to gain access to overseas cash without a US repatriation tax.
Could the Plum Creek Timber-Weyerhaeuser Merger Get Competitive?
In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser is paying about 7.4x trailing-12-month revenues and 25.4x trailing-12-month EBITDA.
UNH Stock Up 4.1% on Solid Q3 2018 Results, View Up
UnitedHealth Group (UNH) released its Q3 2018 earnings today. UNH reported sales of $56.6 billion, up ~12.4% on a year-over-year basis.
Jefferies Raised Its Target Price on UNH Stock: What’s the Outlook?
UnitedHealth Group (UNH) is one of the largest Fortune 500 companies.
Is the Cigna-Anthem Merger a Setup?
Cigna has been put ‘in play,’ which means other buyers will be taking a look. The spread is wide, but there are major unanswered questions. It makes sense to give this one a wide berth.
How Is UNH’s Optum Business Positioned in the Industry?
UnitedHealth Group is, by revenue, the largest healthcare company in the world.
Anthem Files Bear Hug Letter for Cigna on June 21
On June 21, Anthem (ANTM) filed a bear hug letter for Cigna (CI). A bear hug letter is a formal press release in which an acquiring company discloses its interest in a target company.
UnitedHealth Group Reports Q2 2018 Earnings, Stock Down 1.9%
Today, UnitedHealth Group (UNH) reported its earnings results for the second quarter of fiscal 2018. The company reported sales of $56.1 billion, up ~12% on a (year-over-year) basis.
Negative Sentiment Will Impact Health Insurance Companies
The healthcare bill’s failure had a negative impact on investor sentiment for health insurance carriers.
UnitedHealth Group Posted 4Q15 Earnings: What You Should Know
UnitedHealth Group (UNH) released its 4Q15 and full year 2015 earnings on January 19, 2015. The company registered diluted EPS attributable to common shareholders of $1.26 in 4Q15 and $6 for 2015.
UnitedHealth Group Stock at 52-Week High, Up 22% Year-to-Date
UnitedHealth Group (UNH) stock registered its 52-week high of $270.17 last week on August 30.
What’s the Rationale for the ITC-Fortis Merger?
Fortis (FRTSF) is buying ITC (ITC) in the largest Canadian purchase of a US utility. Fortis intends to sell a 19% stake in order to help finance the transaction.
Rationale for the Starwood-Marriott Merger
With the Starwood-Marriott merger, the companies expect to generate at least $200 million in annual cost savings beginning in the second year after the deal closes.
UnitedHealth Group’s Recent Stock Performance
On March 14, 2018, UnitedHealth Group (UNH) ended trading at $225.38 per share.
‘Medicare for All’ Is No Reason to Drop Healthcare Stocks
While the media caters to Millennial preferences, there’s one economic sector that’s shifting to a more seasoned crowd: healthcare stocks.
This Rebate Decision Saw Health Insurers Soar Yesterday
On Thursday, the Trump administration announced the withdrawal of the proposal to abolish rebates paid to pharmacy benefit managers by drugmakers.
ANTM or CI: Comparing Their Revenue Growth in 2019
In its fourth-quarter earnings press release, Anthem (ANTM) guided for 2019 operating revenue of $100 billion, a YoY (year-over-year) rise of $8.7 billion.
Dan Loeb Increased Third Point’s Position in These Stocks in Q4
In Q4 2018, Third Point initiated a new position in Cigna (CI), which is an American healthcare services organization.
United Health Group Stock Has Risen 28% in 2018
On November 29, United Health Group’s (UNH) stock price closed at $282.55, which is ~8% growth from its close of $261.62 on November 23.
Wall Street Expects 9% Upside Potential for UnitedHealth Stock
As of September 24, ten of the 24 analysts covering UNH stock have given it a “strong buy” recommendation.
Analysts Raise Target Prices on UNH Stock in September
Of the 23 analysts covering UNH stock, all of them have “buy” or “strong buy” recommendations for UnitedHealth Group.
BSX Focuses on Advancing Its Cardiac Rhythm Management Portfolio
Boston Scientific expects the results from its UNTOUCHED trial by 2020.
UnitedHealth Group Posted Strong 1Q18 Performance
On April 17, UnitedHealth Group (UNH) reported its 1Q18 earnings results. UNH stock rose ~3.6% from its April 16 closing price.
Cigna Expects Acquisition of Express Scripts by End of 2018
On March 7, 2018, Cigna (CI) announced that it has entered into a definitive agreement to acquire Express Scripts (ESRX) for $67 billion.
How Has Universal Health Services Fared Compared to Peers?
Between November 22 and February 21, Universal Health Services stock has risen 19% to reach $117.
How Amazon Could Upend the Healthcare Sector
Amazon has joined forces with Berkshire Hathaway (BRK.A) and JPMorgan Chase (JPM) to create a not-for-profit healthcare company.
WellCare Health Plans Expected to Report Solid Rise in EPS in 2017
WellCare Health Plans has updated its earnings per share guidance from the previously estimated range of $6.00–$6.25 to the new range of $6.55–$6.80.
WellCare Health Plans Expects Robust Revenue Performance in 2017
In 1Q17, WellCare Health Plans (WCG) reported revenues of ~$3.9 billion, which totals year-over-year growth of around 11.7%.
Centene Saw Robust Rise in Medicaid Enrollments in 1Q17
In 1Q17, around 12.1 million members were enrolled in Centene’s (CNC) various healthcare plans, which is a year-over-year (or YoY) rise of around 600,000 beneficiaries.
UnitedHealth Group Witnessed Robust Customer Growth in 1Q17
In 1Q17, UnitedHealth Group’s (UNH) UnitedHealthcare business witnessed a 2.5 million year-over-year increase in customers.
OptumRx Continues to Boost UnitedHealth’s Pharmacy Care Services
In its bid to control healthcare costs, UnitedHealth Group’s (UNH) OptumRx segment has been actively deploying data analytics across its Optum platform.
Optum360: Will It Become UnitedHealth’s Key Growth Driver?
Optum360, UnitedHealth Group’s (UNH) hospital revenue cycle management solution, is expected to reach $60.0 billion in billings for clients and partner organizations.
Will the ARM Holdings-Softbank Merger Attract Arbitrageurs?
Arbitrageurs will certainly be interested in setting up the ARM Holdings (ARMH) spread, especially if they can get an 8% return using the ordinary shares.
Risk-Reward Ratio of the ARM Holdings-Softbank Merger
ARM Holdings (ARMH) was trading at about $47 per share before the deal with Softbank was announced. The risk-reward ratio is about 12:1.
Could the ARM Holdings-Softbank Deal Get Competitive?
Softbank is paying a pretty penny for ARM Holdings (ARMH). The premium to the prevailing share price was in the low 40%.
Regulatory Conditions to the Softbank-ARM Holdings Deal
Softbank decided to waive any antitrust or regulatory conditions to the transaction. It doesn’t care if the regulators have issues—it’s buying the company.
What Are the Conditions for the ARM Holdings-Softbank Merger?
ARM Holdings and Softbank are merging in a cash transaction. In an unusual step, there aren’t regulatory or antitrust conditions to the transaction.
What’s the Rationale for the Softbank-ARM Holdings Merger?
The Softbank-ARMS Holdings merger intends to increase Softbank’s growth so that it can position itself as a leader in Internet of Things.
Making a Big Splash: Softbank Acquires the UK’s ARM Holdings
On July 18, Japan’s Softbank and the United Kingdom’s ARM Holdings (ARMH) announced a merger where Softbank will buy ARM for 1,700 pence in cash.
Parsing the Starz-Lions Gate MAE Clause, Part 3
If the merger caused cable providers to drop Starz because they didn’t want to work with Lions Gate, it wouldn’t be a MAE (material adverse effect).
Parsing the Starz-Lions Gate MAE Clause, Part 2
According to the MAE (material adverse effect) clause of the Starz-Lions Gate deal, legislation that limits intellectual property protection wouldn’t be considered a MAE.
Parsing the Starz-Lions Gate MAE Clause, Part 1
In the merger deal between Lions Gate Entertainment (LGF) and Starz (STRZA), the MAE (material adverse effect) clause lays out the circumstances under which either party can back out of the transaction.
The Amsurg-Envision Material Adverse Effect Clause: Part 2
In this part of the series, we’ll look at the MAE clause of the Amsurg (AMSG) merger agreement with Envision Healthcare (EVHC) and how Amsurg could back out of the deal.
What Will Arbitrageurs Think of the Demandware Deal?
Traditionally, arbitrage desks would have a portfolio of 40–50 “safe” transactions, and these make up the bread and butter of their returns.
What Is the Risk-Reward of the Demandware Deal?
Demandware (DWRE) was trading at about $48 per share before the deal was announced.
What Does the Demandware-Salesforce Merger Entail?
Salesforce.com (CRM) is buying e-commerce cloud computing firm Demandware (DWRE) in a $2.8 billion transaction. The merger is structured as a tender offer.
Salesforce Buys Demandware to Increase Growth
On June 1, Salesforce.com (CRM) announced it was buying Demandware (DWRE) in a $2.8 billion transaction.
What’s the Rationale for the Bayer-Monsanto Deal?
In the Monsanto-Bayer deal, Bayer’s shareholders should expect to see mid-single-digit accretion to core EPS (earnings per share) in the first year and double-digit accretion thereafter.
Pfizer Purchases Anacor in a $5.2 Billion Cash Deal
On May 16, 2016, Pfizer (PFE) announced that it was acquiring dermatology pharma company Anacor (ANAC) in a transaction valued at $5.2 billion.
Behind OptumHealth’s and OptumInsight’s Strong Revenue Growth in 1Q16
UnitedHealth Group’s healthcare delivery business, OptumHealth, managed to earn $4 billion revenues in 1Q16, which represents a YoY growth of about 22%.
What You’ll Want to Know about Anthem’s Guidance for 2016
In its 1Q16 conference call, Anthem updated its 2016 revenue guidance to $81 billion–$82 billion—higher than the previous projection by about $1 billion.
Rationale for the St. Jude Medical-Abbott Merger Transaction
Abbott Labs is buying St. Jude Medical for about $30 billion in cash, stock, and assumed debt to become a dominant player in the cardiovascular health space.
Abbott Buys St. Jude Medical for $85 per Share in Cash and Stock
On April 28, Abbott Labs and St. Jude Medical announced an agreement where Abbott will buy St. Jude for $30 billion in cash, stock, and assumed debt.
Can the Samsonite-Tumi Merger Get Antitrust Approval?
Samsonite will need to file for merger approval under the Hart-Scott-Rodino Antitrust Improvements Act. The companies will need to file for Canadian antitrust approval.
What’s the Rationale for the Samsonite-Tumi Transaction?
Hong Kong-based Samsonite is buying luxury brand Tumi (TUMI) in a $1.8 billion deal. Samsonite is mainly known as a utilitarian luggage company.
DaVita’s Stock Reacts to the Merger with The Everett Clinic
DaVita HealthCare Partners (DVA) was one of the biggest winners for the week ending March 4 with a return of 6.1%.
Humana Acquisition Could Be Aetna’s Key Long-Term Growth Driver
Aetna’s Humana acquisition is mainly aimed at increasing the combined companies’ exposure to the high-growth Medicare business. The deal is currently being scrutinized by antitrust regulators.
The Baxalta–Shire merger: Basics of Shire Pharmaceuticals
Shire is a biopharmaceutical company that focuses on rare diseases. Shire is best known for its treatments in ADHD, and the market here is quite large.
Growth and Synergies Drive the Baxalta–Shire Merger
The Baxalta–Shire merger could create the top platform for rare diseases in the world. Baxalta brings Advate, a treatment for hemophilia, a rare blood disease.
Parsing the Merger Material Adverse Effect Clause, Part 3
The MAE (material adverse effect) clause is one of the first things arbitrageurs look at in a merger agreement. Let’s examine the Allergan–Pfizer merger’s MAE.
Parsing the Allergan–Pfizer Merger Material Adverse Effect Clause
In the case of the Allergan–Pfizer merger, the MAE clause lays out the circumstances where Pfizer (PFE) can back out of its merger with Allergan (AGN).
IHF’s Large-Cap Stocks Gave Positive Returns
The large-cap stocks of the iShares US Healthcare Providers ETF (IHF) rose marginally with a return of 0.35%. They outperformed IHF and SPY.
What Is the Risk-to-Reward Ratio of the Allergan-Pfizer Merger?
If the Allergan-Pfizer merger closes, the spread goes to zero, and you make about $52. If the deal breaks, you lose about $70.
Allergan–Pfizer Merger: What Does Allergan Make Other than Botox?
This is a second series related to the Allergan-Pfizer merger. We’ll discuss the background of the two companies and look at the Material Adverse Effect Clause.
Rationale for the Allergan-Pfizer Merger
The Allergan-Pfizer merger will generate estimated peak synergies of $2 billion per year, which will take about three years to realize.
Will Arbitrageurs Set up the Plum Creek Timber-Weyerhaeuser Deal?
Given the antitrust risk in the Plum Creek Timber-Weyerhaeuser merger, it probably should trade at a risk-to-reward ratio of about 5:1, which works out to a spread of $1.66 and an annualized spread of 9%.
Risk-to-Reward Ratio of the Plum Creek Timber-Weyerhaeuser Merger
The spread in the Plum Creek Timber-Weyerhaeuser merger is trading slightly negatively (about 6 cents), but the positive dividend carry gives the deal a positive spread.
Parsing the Rite Aid-Walgreens MAE Clause: Part 3
The MAE (material adverse effect) clause lays out the circumstances under which Walgreens Boots Alliance (WBA) can back out of its merger with Rite Aid (RAD).
Rite Aid-Walgreens Merger: What Does Rite Aid Bring to the Table?
Rite Aid is the third largest retail drugstore chain in the United States based on both revenues and number of stores.
Rationale for the Plum Creek Timber-Weyerhaeuser Merger
In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser (WY) and Plum Creek Timber (PCL) anticipate annual cost synergies of $100 million.
Basics of the Plum Creek Timber-Weyerhaeuser Merger
The equity value of the Plum Creek Timber-Weyerhaeuser merger is about $8.4 billion and $11.4 billion if you include debt.
The Plum Creek Timber-Weyerhaeuser Merger
In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser Company (WY) has agreed to buy Plum Creek Timber Company (PCL) for $8.4 billion in stock.
Rationale for the Rite Aid–Walgreens Merger
The Rite Aid–Walgreens merger is expected to be accretive to Walgreens Boots Alliance’s adjusted earnings per share in the first year after completion.
What Are UnitedHealth Group’s Growth Opportunities?
To strengthen their presence in international markets, health insurance companies have been involved in mergers and acquisitions with local insurance companies in these markets.
Why UnitedHealth Group’s Net Profit Margins Fell
In 3Q15, despite a rise of total revenues by 27% year-over-year, which includes 10% organic growth, UnitedHealth Group reported a decline of about 1% in net profit margins.
Parsing the Cigna-Anthem Material Adverse Effect Clause: Part 1
The MAE clause is one of the first things arbitrageurs look at in a merger deal. In the Cigna-Anthem deal, the MAE clause states when either company can back out of the deal.
Analyzing the Market’s Response to the Centene–Health Net Deal
The Centene–Health Net deal is expected to be completed by early 2016, pending approval by the shareholders of both companies.
The Cigna-Anthem Situation: Different Than a Typical Deal
The key to the merger between Cigna (CI) and Anthem (ANTM) is understanding the process companies go through when approached with an unsolicited proposal.
What’s the Expected Return on the Anthem-Cigna Deal?
Anthem refers to the deal premium based on Cigna’s stock price on May 28. That date is as good as any to fix the Anthem stock ratio. On May 28, Anthem closed at $164.22.
Analyzing the Situation in Greece: Impact on Global Markets
Markets in all of the major economies ended low on Monday, June 15. The bailout talks between Greece and its European creditors collapsed over the weekend.
Humana’s Commercial Enrollments Face Pressure in 1Q15
Humana’s (HUM) revenues from commercial enrollments increased by 28.4%, from $2.2 billion in 1Q14 to $2.8 billion in 1Q15.
Key Takeaways from UnitedHealth Group 1Q15 Earnings
UnitedHealth Group (UNH) posted its 1Q15 earnings on April 16, 2015. Following the release, UnitedHealth Group’s share price increased by 3.6%.
What Are Centene’s Key Risks?
Centene (CNC) faces a unique combination of business risks as well as risks specific to the health industry (IYH). Centene has a highly concentrated business mix.
Anthem: Mergers and Acquisitions Target Medicaid, Medicare
Anthem’s mergers and acquisitions strategy mainly targets the company’s government-sponsored business.
Specialty Services: How Does Centene Manage Them?
Aside from the standard healthcare policies, players—like Centene—in the private health insurance industry (IYH) also offer specialty insurance.
Cigna Controls Risk-Based Capital Requirements
The Cigna business model is more concentrated toward commercial enrollments but is diversified across various delivery platforms.