NEW YORK (TheStreet) -- Cigna (CI) shares closed trading down 2.02% to $164.67 on Monday following reports that the Justice Department will be closely scrutinizing potential health service sector mergers, according to the Wall Street Journal.
Last week Anthem (ANTM) made public a $47.5 billion bid for Cigna amid a flurry of other rumored mergers and acquisition among the top five health insurers in the country.
A senior DOJ official told the Journal that many of the publicized potential mergers might raise antitrust concerns saying that all companies involved in merger talks should do careful anti-trust risk-assessments.
The official added that if there were to be a wave of mergers in a short period of time that the acquisitions would be looked at collectively.
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: