Shares of Cigna Group(NYSE: CI), the healthcare company, were rising today after the company announced in a press release that it's not pursuing a merger with one of its competitors, Humana.
Cigna's share price was up by 7.7% as of 1:15 p.m. ET.
Putting Humana merger speculation to rest
Cigna stated clearly in its release today that it is "not pursuing a combination with Humana." Investors had been wondering if the two companies might merge, and the recent presidential election spurred additional speculation if a more business-friendly environment might approve such a deal.
But the company's statement today said that despite "recent and persistent speculation," Cigna is not pursuing any deal with Humana.
"The Cigna Group remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close," the company said in its press release.
Many investors were happy to have a confirmation that Cigna isn't pursuing any deal and were likely relieved that the company wouldn't have to face a lengthy and difficult approval process if such a deal were reached.
Cigna reaffirmed its outlook
In addition to putting rumors to bed, Cigna reaffirmed its outlook for 2024, saying that full-year consolidated adjusted operating income will be at least $28.40 per share and that adjusted earnings per share (EPS) will increase by at least 10% in 2025.
The company also said that it continues to build shareholder value through its share repurchases, of which it's completed $6 billion year to date, and "expects to continue actively repurchasing its shares in the fourth quarter and in 2025."
With Humana merger speculation now out of the way, Cigna investors can focus on the company's expected growth for this year, instead of wondering what the future of the company might look like.
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
