BLOOMFIELD, Conn. - The Cigna Group (NYSE: NYSE:CI), a global health services company, has entered into accelerated stock repurchase agreements with Deutsche Bank AG (NYSE:DB) and Bank of America, N.A., to buy back $3.2 billion of its common stock. This move is a part of the company's existing share repurchase program, which had $10.6 billion in remaining authority as of February 13, 2024.
David M. Cordani, Chairman and Chief Executive Officer of The Cigna Group, stated that this repurchase underscores the company's robust growth and commitment to shareholder value. "We are on track to repurchase $5 billion of common stock over the first half of 2024," Cordani said, emphasizing the company's strategy to utilize the majority of its discretionary cash flow for share repurchases throughout the year.
As part of the agreements, The Cigna Group will initially receive around 7.6 million shares in return for a $3.2 billion prepayment. The final number of shares to be repurchased will depend on the volume-weighted average share price during the term of the agreements, with adjustments based on the agreed terms. The final settlement is anticipated to occur in the second quarter of 2024.
The agreements include standard provisions that allow for adjustments under certain conditions, and the final settlement may result in the company receiving additional shares or making a payment to the counterparties. All repurchased shares will either be held as treasury stock or retired.
The Cigna Group, with its various subsidiaries including Evernorth Health Services and Cigna Healthcare, operates in over 30 countries and jurisdictions, serving approximately 165 million customer relationships worldwide.
This article is based on a press release statement.
InvestingPro Insights
The Cigna Group's (NYSE: CI) recent announcement of a $3.2 billion stock repurchase is a testament to the company's financial strength and commitment to shareholder return. In alignment with this strategy, InvestingPro Tips highlight that management has been aggressively buying back shares and has raised its dividend for 3 consecutive years, showcasing a dedication to returning value to its investors.
Delving into InvestingPro Data, Cigna's Market Cap stands at a robust $99.04 billion, with a P/E Ratio of 19.42, reflecting market confidence in its earnings potential. The company's revenue for the last twelve months as of Q4 2023 reached $195.19 billion, marking a solid revenue growth of 8.42%. Additionally, the company's dividend yield as of the latest data is at 1.65%, with a notable dividend growth of 25.0% over the last twelve months, indicating a strong and increasing return to shareholders.
For those looking to dive deeper into Cigna's financials and strategic positioning, InvestingPro offers additional insights. Currently, there are 12 more InvestingPro Tips available at https://www.investing.com/pro/CI, which could provide further clarity on the company's performance and investment potential. Moreover, for those interested in a comprehensive analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of expert financial data and insights.
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