Anthem Pursuing Cigna Takeover, CI Stock Surges
Reports surfaced today that Anthem Inc. (ANTM – Analyst Report) has placed a takeover bid for Cigna Corp. . There have actually been 2 takeover bids in the last 10 days, the last one priced at $175 per share. The companies have been in discussion about the possibility of a takeover for a few months, but Cigna has thus far denied Anthem’s offers.
Cigna’s stocks surged to a 52-week high of $164 on heels of the news coming about, before decreasing to $153.43 to close out the day, a figure that is still a double digit increase for the session. Anthem’s stock price saw an increase of $3.75 or 2.33% to $164.46 as of the same time.
More CI CIgna Takeover Stories in the News
Anthem Merger Speculation Sends Cigna Higher
Shares rose after a report in The Wall Street Journal said Anthem (ANTM – Get Report) 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.
Anthem Inc. is reportedly interested in acquiring competitor Cigna Corporation.
According to Dow Jones, Anthem Inc (NYSE: ANTM) has initiated a takeover bid for CIGNA Corporation (NYSE: CI) at $175 per share. That’s a premium of about 17 percent — Cigna shares are up a little over 13 percent on the report.
June 16 Stock Market Today: Map of the S&P 500
Day Trading Game Plan: The SPY
SPY chart showing buyers stepped in after the gap lower. Prices held above the opening print most of the day.
Stocks to Trade |Tuesday June 16, 2015
- Lower open and more setups to the short side again.
Interesting Chart Lessons:
BA | Boeing is one of my stocks in play today. Recent news and two inside days. Looking for an increase in volatility to hold to the close. Looking for a trend day.
Earnings in play today > 1M avg shares: ADBE
Bullish Ideas ATR/Volume/Price: SINA, YOKU, FEYE, CYBR, LLY, QIHU, FLX, GILD, GS,
Bearish Ideas ATR/Volume/Price: gmcr, ual, rrc, scty, mon, mmm,
Weak Stock Weak Close: kors, luv, yndx, urbn, x, twtr, ddd, hpq,
Strong Stock Weak Close: MBLY, JD, YOKU
Weak Stock Strong Close: wmb, kmi, oke, adsk,
Strong Stock Strong Close: FEYE, CI, CIEN, CYBR, HLF, GILD, AET, SWKS, AIG, BBT, TASR, STI, UNH
20 day Breakdown: twtr, pep, utx, atvi
20 Day Breakout: CI, CYBR, AET, AIG
2x Normal Volume: bee, ci, lo, aet, aig, cybr, atvi, hlt
Watch List Longs: AET, BAC, MET, MS, COF, SBUX, PNC, JPM, WFC, M>70, C
Watch List Short: chk, swn, mo, wmt, cvx, cost, xom, ko, all, luv, ual, gg, ntap, vz, wynn, klac, qcom, sndk, glw, dd
Inside days: mo, pm, m, qihu, ba, ctrp, psx, gps
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