What Happened?

Shares of health insurance company Cigna (NYSE:CI) fell 8.5% in the afternoon session after the company reported underwhelming fourth quarter earnings. EPS in the quarter missed and its full-year EPS guidance missed significantly. This is due to higher-than-expected medical loss ratios. On the other hand, Cigna exceeded analysts’ revenue expectations this quarter. Overall, this was a softer quarter.

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What The Market Is Telling Us

Cigna’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Cigna is up 1.3% since the beginning of the year, but at $278 per share, it is still trading 24.2% below its 52-week high of $366.85 from September 2024. Investors who bought $1,000 worth of Cigna’s shares 5 years ago would now be looking at an investment worth $1,411.

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