CIGNA Corporation (CI): Are Hedge Funds Right About This Stock?

CIGNA Corporation (NYSE:CI) has seen no change in hedge fund interest in recent months. CI was in 44 hedge funds’ portfolio at the end of September. There were 44 hedge funds in our database with CI holdings at the end of the previous quarter.

According to a recent press release, the company is recruiting for approximately 150 new employees in the Pittsburgh area to join its health care customer service team. CIGNA is hiring for management, training and customer service positions at its offices in North Fayette, Pennsylvania.

CIGNA Corporation (NYSE:CI)

Now, it’s important to take a look at the recent action encompassing CIGNA Corporation (NYSE:CI).

Hedge fund activity in CIGNA Corporation (NYSE:CI)

At the end of the third quarter, a total of 44 of the hedge funds Insider Monkey tracks were bullish on this stock, a change of zero percent from the second quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully.

According to hedge fund experts at Insider Monkey, David Einhorn’s Greenlight Capital had the largest position in CIGNA Corporation (NYSE:CI), worth close to $357 million, amounting to 6.3 percent of its total 13F portfolio. The second largest stake is held by Richard S. Pzena of Pzena Investment Management, with a $252 million position; the fund has 1.6 percent of its 13F portfolio invested in the stock. Other hedgies with similar optimism encompass Jeffrey Tannenbaum’s Fir Tree, Larry Robbins’s Glenview Capital and Steven Richman’s East Side Capital (RR Partners).

Since CIGNA Corporation (NYSE:CI) has experienced bearish sentiment from the smart money, logic holds that there lies a certain “tier” of fund managers that elected to cut their entire stakes last quarter. Interestingly, Gabe Hoffman’s Accipiter Capital Management sold off the largest investment of all the hedgies followed by Insider Monkey, comprising an estimated $12.3 million in stock, and Alok Agrawal of Bloom Tree Partners was right behind this move, as the fund said goodbye to about $11.2 million worth. These moves are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about CIGNA Corporation (NYSE:CI)?

Insider buying is most useful when the company in question has experienced transactions within the past half-year. Over the latest six-month time frame, CIGNA Corporation (NYSE:CI) has experienced zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to CIGNA Corporation (NYSE:CI). These stocks are Coventry Health Care, Inc. (NYSE:CVH), Express Scripts Holding Company (NASDAQ:ESRX), Humana Inc (NYSE:HUM), WellPoint, Inc. (NYSE:WLP), and Aetna Inc. (NYSE:AET). This group of stocks are the members of the health care plans industry and their market caps match CI’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Express Scripts Holding Company (NASDAQ:ESRX) 69 0 8
Humana Inc (NYSE:HUM) 32 1 10
WellPoint, Inc. (NYSE:WLP) 51 0 8
Aetna Inc. (NYSE:AET) 55 0 4

The most popular health care plans industry stock among the hedgies Insider Monkey tracks at the end of Q3 was Express Scripts Holding Company. 25 more funds were long Express Scripts than are invested in CIGNA Corporation.


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