Kates Jamie G sold $268K of CI

Cencora (COR) is down 6.7% since reporting Q2 earnings, trading at $97.38. Progyny (PGNY) reported $350.5M revenue, up 5.3% YoY, but missed EBITDA guidance, dropping 14.1% to $25.94. Humana (HUM) reported $40.87B revenue, up 26.2% YoY, beating estimates, and rose 5% to $407.96. Cigna (CI) reported $71.56B revenue, up 6.6% YoY, beating estimates, but fell 4% to $284.64.

Cigna will exit the individual ACA exchange market entirely after 2026, citing limited scale and profitability. The move will significantly impact Tennessee, where Cigna's departure may leave some counties with only one carrier, potentially leading to higher premiums. Moody's confirmed the exit, noting broader industry trends of insurers leaving unprofitable markets. Tennessee enrollees must choose new plans by 2027, with potential price increases and fewer options.

Jefferies downgraded Cigna (CI) to Hold from Buy, citing mounting 2027 earnings headwinds and limited catalysts. It cut its price target to $307 from $336 and lowered its 2027 EPS estimate to $32.77, about 1% below consensus. Risks include uncertainty around EviCore and HIX, reduced GLP-1 coverage, and increased PBM regulatory scrutiny.

Raymond James downgraded Cigna (CI) to Outperform from Strong Buy and cut its price target to $320 from $350, citing attractive valuation but fewer near-term catalysts. It pointed to moderating growth and PBM headwinds. The firm cited Q2 adjusted EPS of $7.78, raised 2026 guidance to at least $30.45, and modeled $30.50 (2026), $33.50 (2027), $37.00 (2028).

Cigna reported Q2 2026 results showing profit divergence within Evernorth. Specialty and Care Services adjusted pre-tax operating income rose 22% to $1.05B on $26.97B revenue, while Pharmacy Benefit Services operating income fell 27% to $609M on $34.5B revenue. Total Evernorth adjusted revenue rose 6% to $61.47B, but operating income fell 2%. Cigna raised FY2026 adjusted EPS outlook to at least $30.45.

Cigna Group said on an earnings call that growth in GLP-1 weight-loss prescriptions has moderated. Its pharmacy benefits unit reported coverage declines and slower utilization growth. Cigna also stopped covering Wegovy and Zepbound for its own employees due to cost. Shares: Eli Lilly fell 3.8% and Novo ADRs fell over 1%.