With a market capitalization of $74.4 billion, The Cigna Group (CI) is a longtime U.S.-based provider of insurance and health-related products and services, operating through its Evernorth Health Services and Cigna Healthcare segments. Its offerings span pharmacy and care management solutions, medical and behavioral health coverage, Medicare plans, and international health benefits.
Companies valued at $10 billion or more are generally classified as “large cap” stocks, and Cigna fits this bill perfectly. The company distributes its products through brokers, consultants, employers, and public and private exchanges.
Shares of the Bloomfield, Connecticut-based company have fallen 20.5% from their 52-week high of $350. CI stock has fallen 7.3% over the past three months, lagging the Nasdaq Composite ($NASX)’s 7.8% gain over the same time period.
Longer term, CI stock is up marginally so far this year, underperforming the NASX’s 20.2% gain. Additionally, shares of the health insurer have fallen 16.9% over the past 52 weeks, compared to the NASX’s 21.1% return over the same time period.
Despite some fluctuations, the stock has been trading below its 50- and 200-day moving averages since early May.
Despite reporting better-than-expected third-quarter 2025 adjusted EPS of $7.83 and adjusted revenue of $69.57 billion, Cigna shares fell 17.4% on Oct. 30 as the company warned of significant margin pressure over the next two years in its pharmacy benefit services segment. This pressure arises from Cigna’s shift to a zero-rebate pricing model starting in 2027, as well as the pricing review and early renewal of three major contracts: Prime Therapeutics, the U.S. Department of Defense, and Centene, which together account for about $90 billion in annual revenue.
By contrast, rival UnitedHealth Group Incorporated (UNH) has lagged CI stock. UNH shares have fallen 34.8% year to date and 45.7% over the past 52 weeks.
Despite CI’s weak performance relative to the Nasdaq, analysts remain very optimistic about its prospects. The stock has a “Strong Buy” consensus rating from 23 analysts in coverage, and the average price target of $329.45 is a premium of 18.4% to current levels.
As of the date of publication, Sohini Mondal had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com