Cigna group CEO David Cordani sells $8.17 million in stock

David Cordani, Chairman and CEO of Cigna Group (NYSE:CI), a healthcare giant with $247 billion in revenue and an $84.6 billion market cap, recently completed a significant sale of company stock. On March 3, Cordani sold 26,527 shares at an average price of $308.12 per share, totaling approximately $8.17 million. This transaction was executed under a pre-established Rule 10b5-1 trading plan. According to InvestingPro analysis, the company maintains a GREAT financial health score of 3.08.

In addition to the sale, Cordani engaged in transactions related to tax obligations. On February 28, shares totaling $8.44 million were withheld to cover these tax liabilities. The shares were withheld at a price of $305.86 each.

Cordani’s recent activities also included acquisitions of shares, though these were not purchases in the traditional sense. He received 49,437 shares as part of a strategic performance settlement for the 2022-2024 period and an additional 11,117 restricted shares, both at no cost. These restricted shares are set to vest in three equal installments starting March 1, 2026.

Following these transactions, Cordani’s direct ownership in Cigna stands at 127,767 shares. Additionally, he holds indirect ownership through various trusts and plans, including a 401(k) and a grantor retained annuity trust, bringing his total holdings to a substantial number.

These transactions reflect Cordani’s ongoing management of his equity stake in Cigna Group, a leading provider of health services.

In other recent news, Cigna Corporation has announced significant changes in its executive structure and governance aimed at improving health outcomes and customer satisfaction. As part of this initiative, executive compensation will be tied to customer satisfaction improvements, and a Customer Transparency Report will be published annually starting in 2026. On the financial front, Cigna reported a fourth-quarter earnings shortfall for 2024, with adjusted earnings per share of $6.64, falling short of the consensus estimate of $7.82. This shortfall was mainly due to higher-than-expected claims in its Stop-Loss insurance, driven by increased specialty drug costs and high-acuity surgical procedures.

Analyst firms have responded to these developments with adjustments to Cigna’s stock price targets. Piper Sandler reduced its price target from $394 to $348, maintaining an Overweight rating, while RBC Capital Markets lowered its target from $377 to $355, retaining an Outperform rating. Both firms cited challenges with high-cost claims and the company’s Stop-Loss insurance as reasons for their revisions. Despite these challenges, RBC Capital remains optimistic about Cigna’s long-term potential, expecting resolution of margin deficits by 2027. Meanwhile, the healthcare sector, including Cigna, experienced a positive market response following President Trump’s supportive comments on social programs like Medicare, which are crucial to the sector’s revenue.

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