Cigna ‘effectively confirmed’ walking away from Humana with buyback, says BofA

After Cigna (CI) issued a press release to announce boosting its share repurchase program by $10B as well as shifting its focus to pursue “bolt on acquisitions,” rather than large deals, BofA analyst Kevin Fischbeck said this equates to Cigna having “effectively confirmed it was walking away” from a deal with Humana (HUM) that had been reported in the press as under discussion. $10B is roughly 13% of Cigna’s standalone market capitalization, the analyst noted to put the repurchase program in context, adding that committing to share buybacks for capital deployment and reaffirming 2024 guidance adds clarity for Cigna. Meanwhile, for Humana, the deal falling apart is likely bullish given the stock has been down since the news of the deal talks and it signals that Humana is confident in its standalone outlook, particularly after recently reaffirming its 2025 guidance, the analyst added. BofA keeps a Buy rating and $370 price target on Cigna shares.