Cigna (CI) has announced plans to buy back up to $2 billion common stock through accelerated stock repurchase agreements (ASRs) signed with Morgan Stanley & Co. LLC and JPMorgan Chase Bank, N.A.

The agreements form part of the global health services company’s existing share repurchase program. About $3.8 billion capacity remained outstanding as of August 4, 2021, under the program. (See Cigna stock charts on TipRanks)

As per the terms, Cigna will be entitled to receive an aggregate initial delivery of nearly 7.7 million shares in exchange for a prepayment of $2 billion. Notably, the final settlement under the ASR agreements is expected to happen in the fourth quarter of 2021.

The President and CEO of Cigna, David M. Cordani, said, "Today's announcement is further evidence of the confidence of the management team and our Board of Directors in Cigna's financial strength and long-term growth strategy."

On August 9, Raymond James analyst John Ransom reiterated a Buy rating on the stock and lowered the price target to $275 from $317. The new price target implies 32.4% upside potential from current levels.

Ransom is of the opinion that rise in COVID-related costs drove MCR above management targets and led to higher uncertainty to a return to more normalized cost levels for 2022.

Overall, the rest of the Street is bullish on the stock, with a Strong Buy consensus rating based on 16 unanimous Buys. The average Cigna price target of $275.94 implies upside potential of about 32.8% from current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Cigna with 19.4% of investors on TipRanks increasing their exposure to CI stock over the past 30 days.

Related News:
Target to Add More Disney Shops Nationwide
Microsoft Teams Up With Accenture and Duke Energy to Develop Unique Platform
Goodyear Partners with Plus to Offer Autonomous Trucking Solutions

The post Cigna Enters Accelerated Stock Repurchase Agreements Worth $2B appeared first on TipRanks Financial Blog.

----------------------------

By: Radhika Saraogi
Title: Cigna Enters Accelerated Stock Repurchase Agreements Worth $2B
Sourced From: blog.tipranks.com/cigna-enters-accelerated-stock-repurchase-agreements-worth-2b/
Published Date: Tue, 24 Aug 2021 13:15:24 +0000

Read More