The Canada Post Corp Registered Pension Plan has significantly increased its investment in Cigna Group, boosting its stake by an impressive 545.3% during the third quarter of 2023. According to Holdings Channel, the institutional investor now holds 26,888 shares of the health services provider, following the acquisition of an additional 22,721 shares during this period. The total value of Canada Post’s holdings in Cigna Group reached approximately $7.7 million at the end of the reporting period.
This increase is part of a broader trend among institutional investors. Several hedge funds have recently adjusted their positions in Cigna Group, reflecting growing interest in the company. For instance, Massachusetts Financial Services Co. enhanced its stake by 1.1% in the second quarter, now owning 11,778,472 shares valued at $3.89 billion after purchasing an additional 123,479 shares. Similarly, Dodge & Cox increased its investment by 0.7%, now holding 8,950,610 shares worth $2.96 billion.
Norges Bank entered the picture by acquiring a new stake valued at around $1.11 billion, while Arrowstreet Capital Limited Partnership raised its position by 24.4%, owning 2,508,740 shares valued at $829.34 million. Charles Schwab Investment Management also made a modest increase, now possessing 2,052,912 shares worth $678.65 million. Collectively, hedge funds and other institutional investors own 86.99% of Cigna Group’s stock.
Stock Performance and Dividend Announcement
Cigna Group’s stock performance has shown resilience, opening at $292.29 on the New York Stock Exchange (NYSE) on the most recent trading day. The company maintains a debt-to-equity ratio of 0.74 and a market capitalization of $78.08 billion. With a price-to-earnings (P/E) ratio of 13.18, the stock has experienced fluctuations, with a one-year low of $239.51 and a high of $350.00.
In addition to the investment changes, Cigna Group has announced a quarterly dividend of $1.56, set to be paid on March 19, 2024. Shareholders of record on March 5, 2024 will qualify for this payment, marking an increase from the previous quarterly dividend of $1.51. This brings the annualized dividend to $6.24, reflecting a yield of 2.1% and a payout ratio of 26.64%.
Analyst Ratings and Market Outlook
Market analysts have weighed in on Cigna Group’s stock, with varying recommendations. Morgan Stanley reaffirmed an “overweight” rating and set a price target of $355.00, while Sanford C. Bernstein maintained a “market perform” rating with a target of $307.00. TD Cowen also set a price objective of $333.00, with Royal Bank of Canada adjusting its target from $344.00 to $333.00, maintaining an “outperform” rating.
Truist Financial increased its price target from $310.00 to $320.00, providing a “buy” rating on the stock. Overall, one equity research analyst has rated the stock as a Strong Buy, with fifteen giving it a Buy rating and five issuing a Hold rating. The consensus rating stands at “Moderate Buy,” with a target price of $323.16 according to MarketBeat.
Cigna Group, a leading global health services company, offers a wide range of healthcare products and insurance solutions. Its core business includes medical and behavioral health plans, dental and vision coverage, and pharmacy benefit management. Cigna serves a diverse clientele that includes individuals, employers, and government entities, positioning itself as a critical player in the healthcare landscape.
