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Is Cigna Stock Underperforming the Nasdaq?
Yahoo Financeยท 2025-11-28 10:47
Company Overview - The Cigna Group (CI) has a market capitalization of $74.4 billion and is a well-established U.S.-based provider of insurance and health-related products and services, operating through its Evernorth Health Services and Cigna Healthcare segments [1] - Cigna's offerings include pharmacy and care management solutions, medical and behavioral health coverage, Medicare plans, and international health benefits [1][2] Stock Performance - Cigna's shares have decreased by 20.5% from their 52-week high of $350 and have declined 7.3% over the past three months, underperforming the Nasdaq Composite's 7.8% gain during the same period [3] - Year-to-date, Cigna's stock is up marginally, significantly lagging behind the Nasdaq's 20.2% increase, and has decreased 16.9% over the past 52 weeks compared to the Nasdaq's 21.1% return [4] Trading Trends - The stock has been trading below its 50-day and 200-day moving averages since early May [5] Financial Performance - Cigna reported better-than-expected Q3 2025 adjusted EPS of $7.83 and adjusted revenue of $69.57 billion; however, shares tumbled 17.4% on October 30 due to warnings of significant margin pressure in its pharmacy benefit services segment [6] - The margin pressure is attributed to a shift to a no-rebate pricing model starting in 2027 and the repricing and early renewal of three major contracts, which together represent about $90 billion in annual revenue [6] Analyst Sentiment - Despite Cigna's weak performance relative to the Nasdaq, analysts maintain a strong optimism about its prospects, with a consensus rating of "Strong Buy" from 23 analysts and a mean price target of $329.45, indicating an 18.4% premium to current levels [7]