Is CIGNA Corporation (CI) A Good Stock To Buy After Rejecting Anthem’s Bid?

According to Insider Monkey’s database, Richard S. Pzena’s Pzena Investment Management holds 4.7 million shares of CIGNA Corporation (NYSE:CI), worth close to $610.7 million, corresponding to 3.4% of its total 13F portfolio value. Following Pzena Investment Management is Glenview Capital, managed by Larry Robbins, with 1.8 million shares valued at $230.2 million and accounts for 1.1% of its 13F portfolio. Other hedge funds with stakes in CIGNA Corporation (NYSE:CI) include Steven Richman’s East Side Capital (RR Partners), Cliff Asness’ AQR Capital Management and Jacob Gottlieb’s Visium Asset Management.

As one would reasonably expect, several hedge funds might have opened a new position in the stock. Among the funds we track, the largest new stake was held by GMT Capital, managed by Thomas E. Claugus, which disclosed a $69.4 million position that contains 536,300 shares of the health insurance company. Following GMT Capital is Brian Taylor’s Pine River Capital Management, which acquired 456,564 shares valued at $59.1 million, according to its latest 13F filing. In addition, Zach Schreiber‘s Point State Capital, James Dondero’s Highland Capital Management, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management were among the funds with new stakes in Cigna, according to the previous round of 13F filings.

To sum up, even though insiders have been selling shares of CIGNA Corporation (NYSE:CI) lately, hedge funds seem to be more optimistic about the company’s prospects, which will be fueled by takeover talks now. With this in mind, we suggest buying this stock with a high chance that Anthem Inc (NYSE:ANTM)’s increased bid will come through.

Disclosure: None