Cigna: 7 Different Insiders Have Sold Shares This Month

Mar.20.14 | About: Cigna Corp. (CI)

Summary

Seven insiders sold Cigna stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All seven of these insiders decreased their holdings by more than 10%.

Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States and internationally.

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Insider selling during the last 30 days

Here is a table of Cigna's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
John Murabito EVP March 14 29,843 No 105,062 shares + 7,654 options 20.9%
Mary Hoeltzel VP March 14 5,333 No 1,691 shares 75.9%
Jason Sadler President, GIH, L&A March 7 9,911 No 19,387 shares 33.8%
David Cordani CEO March 7 100,800 Yes 215,847 shares 31.8%
Matthew Manders President, R&O March 7 18,136 Yes 48,708 shares 27.1%
William Zollars Director March 6 565 No 0 shares 100%
Nicole Jones EVP March 6 12,861 Yes 7,908 shares 61.9%
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There have been 177,449 shares sold by insiders during the last 30 days. David Cordani, Matthew Manders, and Nicole Jones sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Cigna's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 177,449 0
February 2014 0 0
January 2014 0 0
December 2013 1,542 0
November 2013 6,453 0
October 2013 0 0
September 2013 27,576 0
August 2013 100,514 0
July 2013 0 0
June 2013 117,515 0
May 2013 0 0
April 2013 0 0
March 2013 152,111 4,200
February 2013 0 0
January 2013 6,250 0
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There have been 589,410 shares sold, and there have been 4,200 shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

Cigna reported the full-year 2013 financial results on February 7 with the following highlights:

Revenue $32.4 billion
Adjusted income from operations $1.9 billion
Net income $1.5 billion
Cash $3.4 billion
Debt $5.2 billion
Book value $38.35 per share
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Outlook

Cigna's outlook for full year 2014 consolidated adjusted income from operations is in the range of $1.9 billion to $2.0 billion, or $6.80 to $7.20 per share.

Competition

Cigna's competitors include UnitedHealth Group (NYSE:UNH), Aetna (NYSE:AET), and WellPoint (WLP). Here is a table comparing these companies.

Company CI UNH AET WLP
Market Cap: 21.98B 77.09B 26.86B 27.57B
Employees: 36,500 156,000 48,600 48,200
Qtrly Rev Growth (yoy): 0.07 0.08 0.33 N/A
Revenue: 32.38B 122.49B 47.29B 71.02B
Gross Margin: N/A 0.27 0.25 0.21
EBITDA: 2.89B 10.59B 4.15B 5.15B
Operating Margin: 0.08 0.08 0.08 0.06
Net Income: 1.48B 5.62B 1.91B 2.63B
EPS: 5.18 5.50 5.33 8.19
P/E: 15.49 14.16 13.88 11.92
PEG (5 yr expected): 1.04 1.70 1.23 1.24
P/S: 0.66 0.62 0.56 0.38
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Cigna has the highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
AET 0 26,055
UNH 0 233,211
WLP 0 10,000
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UnitedHealth Group has also seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling Cigna, and there have not been any insiders buying Cigna during the last 30 days. All seven of these insiders decreased their holdings by more than 10%. Cigna has an insider ownership of 0.30%.

Cigna has a $63 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $63 price target. I would place a stop loss at $90, which is the all-time high. The three main reasons for the proposed short entry are a bearish Point & Figure chart, relatively high P/S ratio, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in CI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.