Shares rose after a report in The Wall Street Journal said Anthem (ANTM) offered to buy the Bloomfield, Conn.-based company for $175 a share. While both health insurance giants have been in talks for months, the Journal reports, this is the second offer over the past 10 days, which Cigna rejected.
According to unnamed sources in the Journal, David Cordani, the CEO of Cigna is looking to remain at the top of the new Anthem-Cigna firm, which has interrupted the progress of the deal.
At $156.86, Cigna shares trade at about 21 times greater than its pre-share earnings last year, according to data from Bloomberg.
The analysts at Wedbush Securities hold a neutral rating, with a price target of $140. Leerink Partners holds an outperform rating, along with a price target of $145. The analysts at BMO Capital Markets maintain an outperform rating and a price target of $154.
Of the analysts who cover the stock, 58.8% hold a buy rating, 35.3% maintain a hold rating, while just 5.9% have a sell rating, Bloomberg data revealed.
The stock has returned over 49% since the start of the year, with a market capitalization of $39.4 billion.