Cigna's Scam: The Story of How Executives 'Pumped' the Stock Price to Enrich Themselves by $12 Million

Even Ali Parsa would have said, "Cigna did what? No way." Cigna's resorting to a kitchen sink of semi-legal financial maneuvers to pocket an extra $12 million for its execs.

Let’s be clear: stock manipulation is a crime. To crack a crime, you just need to follow the money. Sadly, the SEC seems to think Cigna is “too big to fail.” Well, I’m picking up the slack and following the money for them...

Now, it’s Christmas season 🎄. For most, that means Santa 🎅, egg nog 🥚, gifts🎁 . For Cigna execs? It's time to pull the ultimate “Hail Mary” from their bag of tricks 🛍️ to ‘pump’ the stock price before 4 pm strikes on Friday, December 29.

Here’s the inside scoop you might not know (and Cigna would never spill): the Cigna execs are a hair’s breadth away from raking in about $12 million more ($62 million vs $50 million), if only they can outperform their median peer (Elevance) in the final two weeks of the year. There’s a sneaky twist in the Cigna executive compensation formula, something neither Cigna management nor the easily-bought “Wall Street analysts” would dare reveal. It’s a high-stakes game for Cigna execs (not that they’re hurting for cash), and they're game for anything, perhaps skirting dangerously close to legal boundaries.

Before diving deeper, let’s talk about my approach...

I want to stress that I’m not the guy who just regurgitates or uses ChatGPT to rehash an article that’s already been rehashed ad nauseam. I never saw the point in simply summarizing a Wall Street Journal piece as if folks can’t read it themselves.

What I do is peel back another layer, nothing radical, just investing extra time to examine the data. It’s a simple step, yet overlooked by 99% of people, thanks to our TikTok-shortened attention spans.

You won’t get this kind of insight from Wall Street analysts. Their livelihood depends on staying in corporations’ good graces.

I’m not one of them. I’m not fussed about corporate backlash. I rely on hard data and common sense. I present my findings, and if I’m off the mark, I own up. But I double and triple-check my work to keep errors at bay.

So, let’s examine the financial shenanigans Cigna pulled. They started by feigning interest in buying Humana. Then they abruptly pulled out within 7 business days. Next, they announced the largest stock buyback in their history. I’m convinced all of this was a play to line their own pockets.

This isn’t going to be my 64-page, Babylon-style deep dive. This time, the truth is just beneath the surface.

Cigna execs are maestros at manipulating Wall Street analysts. They’ve walked the same educational and professional paths. They knew if Plan A (merging two major PBMs into a monopoly) failed, Plan B (a hefty stock buyback) would certainly electrify the analysts, leading to stock upgrades and a price surge. Stock buybacks are Investing 101.

As for the SEC, my patience has worn thin. Time and again, they’ve shown they’re in the industry’s pocket.

I’m doing what the SEC should be doing. I’d be thrilled if they used my findings. (Don’t hold your breath, though.)

However, if there’s anyone inside Cigna who still has faith in the U.S. judicial system, who’s willing to collaborate and become an anonymous whistleblower in the name of justice, I’m all ears. I’m ready to share my analyses and insights.

I hope my suspicions are unfounded, and this is all just a string of coincidences. Maybe. Only time will tell.

If you’re willing to take my word for it that Cigna’s scheme is a blatant ploy to further enrich its executives, who are, let’s face it, already swimming in wealth, that’s perfectly fine.

But, if you’re curious about the nitty-gritty of my investigation, if you’re a fan of my engaging charts, and if you’re interested in supporting my work (which does require a significant effort), I encourage you to become a paid subscriber to my newsletter, “AI Health Uncut.”

Now, let’s delve into how Cigna’s executives are desperately chasing an additional $12 million in compensation. This is a high-stakes game, with the deadline fast approaching: 4 pm Eastern Standard Time on Friday, December 29, 2023. As of the market close last Monday, Cigna was trailing behind Elevance, its median peer, by a slim margin of just 0.76% in terms of 3-year total return performance. The Cigna team is pulling out all the stops, unleashing a barrage of strategies—merger announcements, stock buybacks, you name it—all to inflate their stock price and eclipse Elevance. Surpassing Elevance, even by a hair’s breadth of 0.0001%, could unlock that elusive $12 million. Conversely, lagging behind, even by a minuscule 0.0001%, means they kiss goodbye to that $12 million—it remains in the company’s coffers instead of lining the pockets of the executives.

So, how did I uncover this? Buckle up, it’s quite a story. Hold on to your coconuts… 🥥

---

👉👉👉👉👉 Hi! My name is Sergei Polevikov. If you’re intrigued by my Cigna investigation and crave more in-depth analyses of the digital health industry, I invite you to become a paid subscriber to my newsletter, “AI Health Uncut”. Conducting these detailed analyses demands considerable time and effort, and your support would be greatly appreciated. In my newsletter “AI Health Uncut”, I combine my knowledge of AI models with my unique skills in analyzing the financial health of digital health companies. Why “Uncut”? Because I never sugarcoat or filter the hard truth. If you appreciate my work, please consider showing your support by becoming a paid subscriber! 🙏🙏🙏🙏🙏