156.20 -0.71 (-0.45%)
After hours: 6:30PM EDT
|Bid||155.50 x 800|
|Ask||157.00 x 800|
|Day's Range||156.37 - 160.64|
|52 Week Range||141.95 - 226.61|
|Beta (3Y Monthly)||1.01|
|PE Ratio (TTM)||14.46|
|Forward Dividend & Yield||0.04 (0.02%)|
|1y Target Est||N/A|
UnitedHealth's (UNH) purchase of DaVita Medical Group will likely aid the growth of OptumHealth, which is targeting double-digit percentage revenue long-term growth.
The companies say the government owes them about $12 billion after Congress declined to fund a program meant to entice them to participate in the ACA, also known as Obamacare. The companies were agreeing to take customers with unknown risk, so the original law envisioned reimbursements for companies that lost significant money. While the overall dollar amounts the companies were denied is significant — and some companies dropped out of ACA after being shorted — it’s a small part of most remaining companies’ overall finances.
Tenet Healthcare (THC) enters into a contract with Aetna owing to which the company's healthcare services can be availed by Aetna members.
The Hartford (HIG) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
(Bloomberg Opinion) -- There were 755,436 people working in financial activities in the New York metropolitan area last year, more than twice as many as in the next-biggest area for such jobs, metro Los Angeles. But this amounted to just 8% of New York-area jobs. There are other metropolitan areas where finance makes up a much larger share of employment than that.What the location quotient numbers in the above chart mean, basically, is that in Bloomington, you’re almost four times as likely to encounter people who work in finance as in the country as a whole, and more than 2 1/2 times as likely to encounter them as in the nation’s financial capital. Which makes sense, given that the small Illinois city (2018 metro area population: 188,597) is the home base of insurance giant State Farm; Country Financial, another large insurance and financial group, is also headquartered there. A whopping 22% of the area’s jobs are in financial activities (nationwide, the percentage is 5.6%).Related: Where Microbrewery Jobs Are OverflowingBig insurers explain a lot about these rankings: There’s Principal Financial Group Inc. in Des Moines (along with 80 other insurance and financial services companies); the Hartford Financial Services Group Inc., Cigna Corp. and Aetna (since late last year a subsidiary of CVS Health Corp.) in and around Hartford; Mutual of Omaha in Omaha; USAA in San Antonio. In Sioux Falls, the specialty is credit cards — Citibank famously moved its card operations to the city in 1981 to take advantage of new South Dakota laws that allowed it to charge higher interest rates, and both Citibank and Wells Fargo are now officially based there (their parent companies, Citigroup Inc. and Wells Fargo & Co., are not). The Phoenix, Jacksonville, Omaha, Tampa, San Antonio, Salt Lake City and Dallas areas also all house big financial-services back-office operations. Bridgeport-Stamford-Norwalk — aka Fairfield County, Connecticut — has insurance and investment banking but also a lot of hedge funds, which helps explain why it has the nation’s highest financial-sector average annual wage, at $244,083.Just to round things out, Dubuque has the headquarters of Heartland Financial USA Inc., which owns community banks in 12 states; a Prudential Retirement call center; and a couple of local financial institutions. Birmingham is home to two sizable regional banks, Regions Financial Corp. and Banco Bilbao Vizcaya Argentaria SA subsidiary BBVA Compass. Oh, and New York has some financial institutions, too.Financial activities as defined by the Bureau of Labor Statistics include real estate and rental and leasing, which doesn’t entirely square with what most of us think of as finance. But when I narrowed things down to finance and insurance, Des Moines and Sioux Falls disappeared from the statistics, as the BLS often suppresses local data “to protect the identity, or identifiable information, of cooperating employers.” And I hated the idea of leaving out Des Moines and Sioux Falls, as anyone would.Still, it’s worth redoing the above exercise with a couple of narrower categories that accord better with the notion of high finance. Here are the 10 metropolitan areas with the highest employment location quotients for investment banking and securities dealing:OK, Durham-Chapel Hill was a bit of a surprise at the top of this list; the main explanation seems to be that Credit Suisse Group NA’s Raleigh campus, the firm’s second-largest office in the Americas, is not in Raleigh but in nearby Durham County. Still, the location quotients for metro New York and neighboring Fairfield County stand out, too, and in absolute terms there are seven times as many investment banking jobs in the New York area as in No. 2 metro Chicago. In other words, the commanding heights of investment banking in the U.S. are mostly where everybody thinks they are — although the pay is highest in the San Francisco area, where the investment bankers who take tech companies public tend to work.Finally, here’s the top 10 for portfolio management:It’s obviously no shock to see Bridgeport-Stamford-Norwalk in the top spot, although that location quotient really is something. Santa Fe, the U.S. metropolitan area with the most-altitudinous central city, at 7,199 feet (2,194 meters), is a little less obvious. The most famous hedge fund in town (Prediction Company, started in 1991 by a couple of physicists affiliated with the Santa Fe Institute) shut down last year, but a number of other money managers and private equity funds are located there, presumably because their founders like mountain air and art. The Virginia college town of Charlottesville exerts a similar if damper appeal; my Bloomberg Opinion colleague Joe Nocera wrote about the doings of a hedge fund kingpin there in March.There’s a clear wage divide on this list between places where money managers cluster, driving average pay above $300,000 a year, and those where the great majority of jobs are in administration, customer service and the like, such as metro Philadelphia, home to the largest mutual fund complex, Vanguard Group Inc. The Terre Haute metropolitan area clearly fits in the latter category, although it’s not clear where those 147 portfolio management employees work. Terre Haute-based First Financial Corp. is the area’s biggest financial services employer by far, but it’s chiefly a banking company.The point here, other than just taking advantage of the fun data that the BLS releases every three months from the Quarterly Census of Employment and Wages, is that while the standard picture of a U.S. financial sector concentrated in and around New York isn’t all wrong, there are other places around the U.S. that depend even more on financial services jobs to pay the bills.Coming Sunday: A booming local health-care industry isn’t always a good thing.To contact the author of this story: Justin Fox at firstname.lastname@example.orgTo contact the editor responsible for this story: Brooke Sample at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Justin Fox is a Bloomberg Opinion columnist covering business. He was the editorial director of Harvard Business Review and wrote for Time, Fortune and American Banker. He is the author of “The Myth of the Rational Market.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The Omega Advisors chairman and CEO, billionaire Leon Cooperman, recently was a guest at CNBC’s "Squawk Box", and he shared his observations on the current market trends. In the interview, he pointed out that we live in abnormal times alluding to $12 trillion-plus of sovereign debt that has a negative interest rate. He explained further […]
Investors may like to add insurance stocks with strong fundamentals and potential to generate better yields in the current scenario.
CVS Health (NYSE: CVS) faces two distinct headwinds that are putting pressure on CVS stock.First, markets are cautious over the drug store and drug manufacturing market as the government pressure all players to lower drug prices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDoubts over CVS' acquisition of Aetna are adding more distractions for management in the near-term. With CVS stock testing the $51.72 yearly low on at least five occasions since March, what will it take for the stock to rebound?CVS reported first-quarter earnings of $1.62 and also raised its full-year adjusted EPS guidance to $6.75 to $6.90. This is up from the previous guidance of $6.68 to $6.88 a share.The Q1 beat and improved outlook are due largely to the inclusion of managed care operations. The company also included revenue from SilverScript Medicare Part D, which contributed $17.9 billion of revenue for the quarter. * 5 Stocks to Buy for $20 or Less Better synergies with Aetna also contributed favorably to the higher outlook. CVS expects it will exceed its target savings of $750 million in 2020. It found synergies stemming from the elimination of duplication in corporate and operational functions, medical cost savings such as formulary alignment, and purchasing efficiencies. By 2022, CVS forecast saving $1.5 billion to $2 billion, well above its deal synergy targets.CVS forecast cash flow of between $9.8 billion and $10.3 billion and will use $4.2 billion to $4.6 billion to pay down its debt. Its debt/equity of 1.25 times is above that of Cigna Corporation (NYSE: CI) at 0.95, and UnitedHealth (NYSE: UNH) at 0.74, both of which are attractive investments.Despite the less favorable debt/equity, CVS Health pays a dividend yielding 3.69%. Walgreens Boots Alliance (NASDAQ: WBA) also has a lower debt/equity of 0.73 but its dividend is slightly lower too, at 3.35%. Value Investing OpportunityInvestors who think that CVS has deep value with a forward P/E of 7.6 times are betting the company will mitigate near-term headwinds hurting the business. In Q1, prescription growth of 5.5% benefited from the support of clinical care programs and network relationships.The company will improve margins in its long-term care business. And with PBM, the idea of a net cost pricing model is resonating with clients. Some clients will adapt to this offering while CVS expects its uptake improving in 2020 and beyond.CVS is testing new approaches in delivering and managing health care. Its Houston HealthHub stores bring health care services into communities. Meeting people where they are should drum up more business.Still, CVS will primarily use data and analytics to deliver such services at the best cost. Plus, it has a long-term vision of seamlessly connecting consumer experiences across digital and clinical interactions.Initial results from the Houston stores are encouraging. The locations are performing better than expected, giving the company the green light to expand the HealthHUB model. RisksAlthough CVS Health's market share stood at 26.2% in the first quarter, front store comparable sales rose just 0.4%. Adjusted operating income from Retail/Long-term care dropped 18.9%. Reimbursement pressure, higher legal costs, and higher expenses weighed on Q1 results.Should costs grow higher than expected in the course of this year, CVS may lower its guidance. Fortunately, synergies from the Aetna acquisition are tracking higher than the company expected. HealthHUB is resonating well with customers. This is encouraging the company to add more net new items in the front-store of the self-care and wellness areas. Along with expanding MinuteClinic services, CVS will continue expanding the interactions between pharmacists and patients who need it most. ValuationThe 14 analysts offering a price target on CVS stock have an average price of $70.18, which is ~30% above the recent closing price of $54.17. Conversely, investors could assume a perpetuity growth rate of between 5% and 6% in the 5Y DCF Growth Exit model. In this scenario, the fair value of CVS stock is $63 a share, implying an upside of 16% for investors (per finbox.io). Your CVS Stock TakeawayThe CVS and Aetna deal is getting challenged. Investors could bet that the court lets the deal close. More importantly, CVS is already reaping the benefits of the combination by cutting costs. By delivering better services to the customers it services, the company will keep growing.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities.Compare Brokers The post CVS Stock Has More Going for It Than Just a 3.69% Dividend Yield appeared first on InvestorPlace.
Radian Group (RDN) raised the size of the senior notes offering to $450 million from $350 million announced earlier and priced the same at a coupon rate of 4.875% per year.
It's an odd development to say the least, but a development nonetheless. Federal judge Richard Leon is attempting to prevent the merger of drugstore chain CVS Health (NYSE:CVS) and health insurer Aetna, even though the merger has already been consummated, with Aetna's value being folded into the price of CVS stock in late November.Source: Mike Mozart via FlickrAlthough rare, companies have been forced to unwind completed mergers before. They've never been forced to do so using Tunney Act proceedings, however, and legal experts doubt Leon's efforts will gain much traction.They could prove to be a drag on the CVS story, however, which is already lugging around too much dead weight.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Healthcare Mergers Are CommonIt's not the first melding of unlike healthcare organizations we've seen of late. Cigna (NYSE:CI) now owns Express Scripts, and HCA Healthcare (NYSE:HCA) has completed its purchase of Asheville, North Carolina's Mission Health. Even Amazon.com (NASDAQ:AMZN), JPMorgan Chase (NYSE: JPM) and Berkshire Hathaway (NYSE:BRK.B) are teaming up to create a new healthcare outfit intended to cost-effectively serve all three organizations' employees.The common thread among these and dozens of other similar partnerships, of course, is an effort to combat the rising costs of providing healthcare. In most instances, the pairings were allowed to take shape with little fanfare.For reasons that remain mostly unclear, however, this particular deal has prompted a judicial pushback. District Judge Richard Leon's Merger HistoryThe name Richard Leon may ring a bell with some investors. The U.S. district judge is the same that oversaw the Department of Justice's effort to quell the merger of AT&T (NYSE:T) and Time Warner.Leon was largely criticized following his ruling, not just for allowing it to take shape, but for allowing it to take shape without adding any conditions.That's not his only controversial case, however. Indeed, Leon has left a trail of controversial (and often overturned) rulings behind in his career, including politically-charged ones.And, while it would be easy to chalk the judge up as a politically-motivated hack, it would also be unfair; he's proven helpful to not just both political parties, but both philosophical schools of thought. The AT&T deal with Time Warner raises many of the same concerns being raised by the union of Aetna and CVS.The crux of the still-unanswered question is the consent decree that calls for CVS to sell its Medicare Part D business to WellCare Health Plans (NYSE:WCG), while still remaining WellCare's pharmacy benefits manager. Leon's concern "is whether or not the pharmaceuticals will be [offered to WellCare customers] at a lower price and whether they're going to be more readily accessible."Still, to kill the deal at this point would step far out of the bounds of the consent decree process as it's been established. It would also step out of the accepted bounds of Tunney Act hearings. At best, says former DOJ antitrust attorney Andrea Agathoklis Murino, Leon "can say the remedy was insufficient," forcing CVS to do more than simply shed its Medicare D arm. Bottom Line for CVS StockThe development makes for thrilling headlines, though Leon's lacking legal teeth if his intent is to undo what's already been done. All the same, the renewed court battle which could last well into the summer not only serves as a nuisance but keeps shareholders uncertain as to what the company may look like a year from now. That, in turn, is keeping the value of an already-beaten-down CVS stock suppressed.What's largely being overlooked in the legal melee, however, is that such a worst-case scenario has already been more than priced in.As of its most recent look, CVS stock is trading at a dirt cheap forward-looking P/E ratio of 7.6. Even if Aetna and CVS are forced to completely split again, which is unlikely, CVS remains one of the top remaining players in the pharmacy and PBM space, if for no other reason than attrition of its rivals. The more plausible outcome of a deeper separation of its Medicare business, ultimately, could prove to go unnoticed by investors.It's certainly a trade against the current grain but surrounded by doubts and questions, CVS stock looks like a compelling contrarian trade here for investors willing to hunker down for the long haul.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Aetna Uncertainty Is Keeping CVS Stock Way Undervalued appeared first on InvestorPlace.
Senior Judge Richard Leon sent shares in drug store chain CVS (NYSE:CVS) lower after saying he might try to stop its $69 billion merger with Aetna (NYSE:AET), a health insurer. CVS announced the deal in December 2017. Since then, CVS stock is down over 25%. It was due to open for trade June 12 at about $54 per share. CVS' market cap of $70 billion is now just 36% of its 2018 revenue, which was $194 billion.Source: Mike Mozart via FlickrLeon told CVS' and Aetna's lawyers to "cancel their summer vacation," arguing the Department of Justice barely considered what adding 21 million customers could do for CVS' Caremark, a Pharmacy Benefit Manager (PBM).Oral arguments will be held July 17, a ruling coming shortly after. CVS has already agreed to sell its Medicare Part D plan, the only overlap with Aetna, to Wellcare, which in turn is being bought by Centene (NYSE:CNC).InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Question of CostsCentene's involvement begs the main question raised by the merger, which is whether the deal can cut healthcare costs.Centene's market advantage is cost visibility. Its business model is to profit in Medicare and Medicaid by owning clinics and other facilities its covered patients use. It was a big winner on the Obamacare exchanges, where it could offer much lower prices than standard insurance plans.The American Hospital Association opposes the CVS-Aetna merger, while supporting mergers between hospital groups, arguing that hospitals aren't the cause of health care inflation. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever They're right. Drugs are. Combining PBMs and insurers is how the industry is fighting drug costs.CVS plans to turn 1,500 stores into "HealthHubs," after the merger, with labs, nurses and dieticians to treat chronic conditions like diabetes, representing 75% of America's health care bill.CVS has been preparing itself for a favorable outcome since February, when it reached the agreement with the Department of Justice Judge Leon is now reviewing. The Question of CompetitionLeon's objections are centered on Caremark, but that unit's problems were behind the merger in the first place.The PBM model was upended four years ago when UnitedHealth Group (NYSE:UNH), the largest private insurer, bought Catamaran, another PBM, for its own OptumRx unit.The deal made the stand-alone PBM market untenable. Since then, Express Scripts, the largest PBM, was acquired by Cigna (NYSE:CI), an Aetna rival. That merger, and the CVS-Aetna tie-up, followed failed attempts by Aetna to merge with Humana (NYSE:HUM) and by Cigna to merger with Anthem (NASDAQ:ANTM). Having failed at horizontal mergers because of their size (despite UnitedHealth being bigger than either combination), the second-tier players moved toward vertical mergers, hoping to compete through cost control.Thus, Leon seems intent on stopping a train that has already left the station. UnitedHealth, Centene and Cigna own PBMs, and he's going to stop CVS-Aetna because CVS owns one? The Bottom Line on CVS StockNot all mergers work. CVS' own acquisition of Omnicare, a long-term care provider, caused it take a $3.9 billion write-down in the second quarter of last year, and a net loss for all of 2018. * 7 U.S. Stocks to Buy With Limited Trade War Exposure But given how far insurers have gone along the road to matching income with outgo, the Aetna merger was looking like a winner. The delays have pushed CVS shares down enough to give its 50 cent per share dividend a yield of 3.82%, even though absent of write-offs, it covers that dividend with earnings two to three times over each year.The Leon delay looks like a good opportunity for income investors to grab a bargain.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Can CVS Stock Overcome the Latest Wrench in Its Aetna Merger? appeared first on InvestorPlace.
“Medicare for All” got a hearing Wednesday before a powerful House panel, but there continued to be signs that top Democrats aren’t embracing the issue.
The ninth-annual BB&T; Atlanta Open, scheduled for July 20-28, is in its first year of a new 5-year contract with Atlantic Station.
Tim Wentworth, president of Express Scripts and Cigna Services, and law firm Husch Blackwell's chairman, Greg Smith, will co-chair the 2019 fall fundraising campaign for the United Way of Greater St. Louis.
Here's what Jim Cramer had to say about Cigna Corp. during the "Mad Money" Lightning Round on Monday evening: "I want you to buy some more. In this daily bar chart of CI, below, we can see some positive developments.
Cigna Corp NYSE:CIView full report here! Summary * Perception of the company's creditworthiness is positive * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for CI with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting CI. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding CI totaled $5.35 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. CI credit default swap spreads are near the lowest level of the last one year and indicate improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Let's see if Cigna Corporation (CI) stock is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks.
We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of CIGNA Corporation (NYSE:CI) based on that data. […]
GlobalSTL will play matchmaker on Wednesday between 16 international startups hoping to land a lucrative deal with some of St. Louis’ major players in the health care industry.