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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.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
John MurabitoEVPMarch 1429,843No105,062 shares + 7,654 options20.9%
Mary HoeltzelVPMarch 145,333No1,691 shares75.9%
Jason SadlerPresident, GIH, L&AMarch 79,911No19,387 shares33.8%
David CordaniCEOMarch 7100,800Yes215,847 shares31.8%
Matthew MandersPresident, R&OMarch 718,136Yes48,708 shares27.1%
William ZollarsDirectorMarch 6565No0 shares100%
Nicole JonesEVPMarch 612,861Yes7,908 shares61.9%

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.

MonthInsider selling / sharesInsider buying / shares
March 2014177,4490
February 201400
January 201400
December 20131,5420
November 20136,4530
October 201300
September 201327,5760
August 2013100,5140
July 201300
June 2013117,5150
May 201300
April 201300
March 2013152,1114,200
February 201300
January 20136,2500

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

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 (NYSE:WLP). Here is a table comparing these companies.

CompanyCIUNHAETWLP
Market Cap:21.98B77.09B26.86B27.57B
Employees:36,500156,00048,60048,200
Qtrly Rev Growth (yoy):0.070.080.33N/A
Revenue:32.38B122.49B47.29B71.02B
Gross Margin:N/A0.270.250.21
EBITDA:2.89B10.59B4.15B5.15B
Operating Margin:0.080.080.080.06
Net Income:1.48B5.62B1.91B2.63B
EPS:5.185.505.338.19
P/E:15.4914.1613.8811.92
PEG (5 yr expected):1.041.701.231.24
P/S:0.660.620.560.38

Cigna has the highest P/S ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
AET026,055
UNH0233,211
WLP010,000

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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Source: Cigna: 7 Different Insiders Have Sold Shares This Month