U.S. Markets closed
  • S&P 500

    3,443.12
    +16.20 (+0.47%)
     
  • Dow 30

    28,308.79
    +113.39 (+0.40%)
     
  • Nasdaq

    11,516.49
    +37.59 (+0.33%)
     
  • Russell 2000

    1,617.71
    +4.08 (+0.25%)
     
  • Crude Oil

    41.51
    +0.68 (+1.67%)
     
  • Gold

    1,909.40
    -2.30 (-0.12%)
     
  • Silver

    24.75
    +0.05 (+0.19%)
     
  • EUR/USD

    1.1827
    +0.0054 (+0.4613%)
     
  • 10-Yr Bond

    0.7970
    +0.0360 (+4.73%)
     
  • Vix

    29.35
    +0.17 (+0.58%)
     
  • GBP/USD

    1.2945
    +0.0004 (+0.0324%)
     
  • USD/JPY

    105.4630
    +0.0330 (+0.0313%)
     
  • BTC-USD

    11,898.45
    +841.44 (+7.61%)
     
  • CMC Crypto 200

    239.12
    +0.21 (+0.09%)
     
  • FTSE 100

    5,889.22
    +4.57 (+0.08%)
     
  • Nikkei 225

    23,567.04
    -104.06 (-0.44%)
     

Trade Alert: The Executive VP & CFO Of Cigna Corporation (NYSE:CI), Eric Palmer, Has Just Spent US$169k Buying 3.9% More Shares

Simply Wall St
·3 mins read

Investors who take an interest in Cigna Corporation (NYSE:CI) should definitely note that the Executive VP & CFO, Eric Palmer, recently paid US$169 per share to buy US$169k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.9%.

View our latest analysis for Cigna

Cigna Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Eric Foss for US$2.0m worth of shares, at about US$196 per share. That means that an insider was happy to buy shares at above the current price of US$167. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$3.2m for 16.66k shares. On the other hand they divested 8.80k shares, for US$1.8m. In total, Cigna insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Cigna

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Cigna insiders own 0.3% of the company, currently worth about US$184m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Cigna Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cigna. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Cigna and understanding these should be part of your investment process.

Of course Cigna may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.