Cigna stock rallies after setting $2 billion ASR

Shares of Cigna Corp. rose 1.4% in premarket trading Tuesday, after the insurer announced a $2.0 billion accelerated stock repurchase (ASR) agreement with Morgan Stanley and J.P. Morgan Chase Bank. The ASR is part of its repurchase program, which had $3.8 billion remaining as of Aug. 4. "This accelerated share repurchase is consistent with our commitment to return a significant amount of capital to shareholders," said Chief Executive David Cordani. Based on Monday's stock closing price of $207.74, the ASR could represent 9.63 million shares, or 2.8% of the shares outstanding. The stock has dropped 20.6% over the past three months through Monday, while the SPDR Health Care Select Sector ETF has rallied 9.4% and the S&P 500 has gained 6.7%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Cigna stock rallies after setting $2 billion ASR
Shares of Cigna Corp. rose 1.4% in premarket trading Tuesday, after the insurer announced a $2.0 billion accelerated stock repurchase (ASR) agreement with Morgan Stanley and J.P. Morgan Chase Bank. The ASR is part of its repurchase program, which had $3.8 billion remaining as of Aug. 4. "This accelerated share repurchase is consistent with our commitment to return a significant amount of capital to shareholders," said Chief Executive David Cordani. Based on Monday's stock closing price of $207.74, the ASR could represent 9.63 million shares, or 2.8% of the shares outstanding. The stock has dropped 20.6% over the past three months through Monday, while the SPDR Health Care Select Sector ETF has rallied 9.4% and the S&P 500 has gained 6.7%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.