NEW YORK (TheStreet) -- Shares of Cigna Corp. (CI) are higher by 3.24% to $140.27 in late afternoon trading on Friday, following reports suggesting the company is looking into acquiring fellow health insurer Humana (HUM).
Cigna is said to have approached Humana, which earlier today was reported to be looking into selling itself, regarding a potential deal, sources told Bloomberg.
If Cigna were to purchase Humana it would catapult the company into the lead in the Medicare Advantage policies market, Bloomberg noted.
The majority of Humana's revenue comes from its patients using Medicare, The Wall Street Journal reports. Earlier in the day The Journal said Humana is working with Goldman Sachs (GS) as it enters the earlier stages of exploring a sale. Aetna is also said to have approached Humana.
Separately, TheStreet Ratings team rates CIGNA CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CIGNA CORP (CI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."