Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States and internationally.
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%|
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|
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.
Cigna reported the full-year 2013 financial results on February 7 with the following highlights:
|Adjusted income from operations||$1.9 billion|
|Net income||$1.5 billion|
|Book value||$38.35 per share|
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.
|Qtrly Rev Growth (yoy):||0.07||0.08||0.33||N/A|
|PEG (5 yr expected):||1.04||1.70||1.23||1.24|
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|
UnitedHealth Group has also seen intensive insider selling during the last 30 days.
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.
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.