Cigna buys Express Scripts for $67B

19 March, 2018, 00:18 | Author: Salvatore Jensen
  • Cigna buys Express Scripts for $67B

The Cigna-Express Scripts deal is also Cigna's first merger attempt since the federal government previous year successfully blocked its proposed deal with rival insurer Anthem. Express Scripts employs 28,000 people worldwide.

Institutional investors and hedge funds have recently modified their holdings of the company.

The combined company will be named Cigna and will be led by Cordani, while its board will be expanded to 13 directors, including for independent members of the Express Scripts board. About 28.93M shares traded or 585.03% up from the average.

The deal includes a combination of cash and stocks. The stock was sold at an average price of $70.08, for a total value of $708,088.32. Following the completion of the transaction, the vice president now owns 87,400 shares of the company's stock, valued at approximately $6,124,992. The disclosure for this sale can be found here. Company insiders own 0.68% of the company's stock.

ESRX stock was up 8% and CI stock was down 11% as of Thursday afternoon. The firm has a market cap of $43,050.00, a price-to-earnings ratio of 9.86, a P/E/G ratio of 0.94 and a beta of 0.94. Express Scripts has $96 highest and $57 lowest target. The company had revenue of $25.38 billion for the quarter, compared to analyst estimates of $25.07 billion. Express Scripts had a net margin of 4.51% and a return on equity of 25.19%. The company's quarterly revenue was up 2.1% on a year-over-year basis. BidaskClub lowered Express Scripts from a "buy" rating to a "hold" rating in a research note on Wednesday, February 14th.

At the close of the deal, Cigna shareholders will own about 64% of the combined company and Express Scripts shareholders will own about 36%. This buyback authorization allows the company to reacquire shares of its stock through open market purchases.

ESRX has been the subject of several recent analyst reports. They set a "buy" rating and a $75.00 price objective for the company. It is positive, as 66 investors sold Express Scripts Holding Company shares while 414 reduced holdings. RBC Capital Markets upgraded Express Scripts Holding Company (NASDAQ:ESRX) on Wednesday, January 31 to "Outperform" rating.

As mentioned above, Express Scripts is having an incredibly strong start to the trading session this morning after announcing that it has entered into a definitive agreement to be acquired. 1 analysts gave its stock an Outperform rating. The 12-month consensus price target on the stock is $84.37.

ILLEGAL ACTIVITY WARNING: "USA Financial Portformulas Corp Acquires Shares of 4,872 Express Scripts Holding (ESRX)" was first posted by Dispatch Tribunal and is the sole property of of Dispatch Tribunal. If you are viewing this article on another publication, it was illegally stolen and reposted in violation of United States & worldwide trademark and copyright legislation. Chieftain Capital Mngmt Incorporated holds 17.83% in Express Scripts Holding Company (NASDAQ:ESRX) or 3.58M shares.

In another mega deal to reshape the business of negotiating drug prices, health insurer Cigna said Thursday it will acquire Express Scripts Holding, the nation's largest pharmacy benefit manager, in a package valued at $67 billion.



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