In this article, we discuss top 5 stock picks of Michael Burry’s 2022 portfolio. If you wish to read our detailed analysis of Burry’s hedge fund performance, stock selection and future market predictions, go directly to Michael Burry’s 2022 Portfolio: Top 10 Stock Picks.
5. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 53
Scion Asset Management’s Stake Value: $17.97 million
Scion Asset Management’s 13F Portfolio: 8.92%
Cigna Corporation (NYSE:CI) is an insurance and healthcare services provider based in Connecticut. As of May 19, the firm’s shares have recorded an uptick of 9.91% in the year to date. Scion Asset Management, according to its Q1 2022 portfolio, owned a $17.97 million stake in the company consisting of 75,000 shares, which represented 8.92% of its total holdings.
JPMorgan analyst Lisa Gill on May 16 upgraded Cigna Corporation (NYSE:CI) to ‘Overweight’ from ‘Neutral’ with a price target of $304, up from $248. The analyst appreciated the firm’s Q1 results, and noted further possible upside to its already updated 2022 guidance. She views the shares as trading at an attractive valuation. Raymond James analyst John Ransom on May 10 gave Cigna Corporation (NYSE:CI) a ‘Strong Buy’ rating and a price target of $300, up from $275.
In the first quarter of 2022, Cigna Corporation (NYSE:CI) reported EPS of $6.01, above estimates by $0.83. Quarterly revenue stood at $44.1 billion, outperforming consensus figures by $629.9 million.
53 hedge funds held positions worth $1.92 billion in Cigna Corporation (NYSE:CI) at the end of December, as compared to 58 hedge funds with $2.3 billion worth of stakes in the firm at the end of September.
Davis Funds, an investment firm, talked about multiple stocks in its Q4 2021 investor letter, and Cigna Corporation (NYSE:CI) was one of them. The fund said:
“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”
