Market Update: Cigna Corp (NYSE:CI) – Health insurer Cigna reports better-than-expected profit

[Reuters] – Health insurer Cigna Corp reported a better-than-expected quarterly profit, helped by strength in its government plans and favorable medical costs in its employer business. Cigna said the forecast included impact from the sanctions placed on its Medicare Advantage plans in late January, when the government suspended new enrollments in Medicare Advantage health insurance and prescription drug plans, citing what it called “widespread and systemic failures” that prevented patients from accessing medical services. Cigna, which is being bought by larger rival Anthem Inc , manages insurance plans for large corporations and sells health plans on the government exchanges created by the President Barack Obama’s healthcare reform, the Affordable Care Act. Read more on this. Cigna Corp. (CI) , currently valued at $34.64B, started trading this morning at $131.00. Looking at the stock, its one day range is $130.64 to $134.74 and has traded between $110.76 and $170.68 over the past 12 months. Cigna (CI) shares are currently priced at 15.44x this year’s forecasted earnings, which makes them relatively expensive compared to the industry ’s 13.13x earnings multiple for the same period. And for dividend hunters, the company pays shareholders $0.04 per share annually in dividends, yielding 0.03%. According to a consensus of 18 analysts, the earnings estimate of $1.80 per share would be $0.11 better than the year-ago quarter and a $0.08 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $8.58, which would be a $1.15 improvement when compared to the last year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $9.52 Billion. If realized, that would be a 6.97% increase over the year-ago quarter. In terms of ratings, Jefferies upgraded CI from Hold to Buy (Jan 8, 2016). Previously, Citigroup Initiated CI at to Buy. The average price target for CI shares by the analysts covering it is $172.21, which is 31.46% above where the stock opened. See more in (NYSE:CI) Similar Articles: Company Update (NYSE:CI): Health insurer Cigna reports better-than-expected Q3 profit Market Update: Cigna Corp (NYSE:CI) – Cigna and St. Joseph Hoag Health Develop Innovative New Products for Health Care Delivery in Greater Orange County Market Update (NYSE:CI): Cigna Becomes First U.S. Health Insurer to Sign UN Global Compact; Announces Key Milestones in Second Annual CR Report