Humana and Cigna are reportedly in early talks of a merger
Shares of Humana Inc (NYSE:HUM) and Cigna Group (NYSE:CI) are making opposite moves today, as merger talks between the health insurance companies ramp up. According to a Bloomberg report that cited people familiar with the matter, the talks are in early stages.
At last glance, HUM is 0.5% higher at $268.55. The equity is still down nearly 50% in the past 12 months, with a more than 40% year-to-date deficit to boot. Humana stock could today conquer its 20-day moving average, as it distances itself from its Oct. 2 dip to more than four-year lows at $213.31.
It's a different story for CI, which is 4.5% lower to trade at $320.84 at last look. The equity has added 6.6% since the start of 2024, but is gapping below its 220-day moving average for the first time this year and earlier hit its lowest level since early July.
Call traders are targeting CI at four times the intraday average amount, though overall volume is low. The most active contract is the weekly 10/25 310-strike put, where new positions are being opened.