5 Best Healthcare Stocks to Buy According to Billionaire Larry Robbins

2. Cigna Corporation (NYSE:CI)

Glenview Capital’s Stake Value: $382,417,000

Percentage of Glenview Capital’s 13F Portfolio: 7.74%

Number of Hedge Fund Holders: 63

Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States. In the first quarter of 2022, Glenview Capital raised its stakes in Cigna Corporation (NYSE:CI) by 44%, bringing them to $382.41 million. The investment covers 7.74% of Larry Robbins’ investment portfolio.

On June 16, Cigna Corporation (NYSE:CI) announced that its board of directors has authorized an accelerated $3.5 billion share repurchase program which will allow the company to buy back shares of its common stock through agreements with Mizuho Markets Americas and Morgan Stanley.

On June 21, Morgan Stanley analyst Ricky Goldwasser raised his price target on Cigna Corporation (NYSE:CI) to $296 from $283 and upgraded the stock to Overweight from Equal Weight.

At the close of Q1 2022, 63 hedge funds disclosed ownership of stakes in Cigna Corporation (NYSE:CI). The total value of these stakes amounted to $2.69 billion, up from $1.92 billion a quarter ago with 53 positions. The hedge fund sentiment around the stock is positive.

Here is what Davis Funds had to say about Cigna Corporation (NYSE:CI) in its fourth-quarter 2021 investor letter:

“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.”