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65.00
-2.46
(-3.65%)
At close: October 15 4:00PM
65.0124
0.0124
( 0.02% )
After Hours: 5:35PM

Your Hub for Real-Time streaming quotes, Ideas and Live Discussions

Key stats and details

Current Price
65.0124
Bid
-
Ask
-
Volume
17,215,977
63.60 Day's Range 66.09
52.7705 52 Week Range 83.25
Market Cap
Previous Close
67.46
Open
64.50
Last Trade
5
@
65.095
Last Trade Time
18:34:05
Financial Volume
$ 1,120,181,818
VWAP
65.0664
Average Volume (3m)
9,624,104
Shares Outstanding
1,257,979,270
Dividend Yield
4.09%
PE Ratio
9.80
Earnings Per Share (EPS)
6.63
Revenue
357.78B
Net Profit
8.34B

About CVS Health Corporation

CVS Health Corp, its acquisition of Aetna in late 2018, CVS Health now provides an even more integrated healthcare-services offering for its members. Legacy CVS a sizable pharmacy operation, includes nearly 9,900 retail pharmacy locations primarily in the U.S. Adding a managed-care organization with... CVS Health Corp, its acquisition of Aetna in late 2018, CVS Health now provides an even more integrated healthcare-services offering for its members. Legacy CVS a sizable pharmacy operation, includes nearly 9,900 retail pharmacy locations primarily in the U.S. Adding a managed-care organization with 35 million medical members gives the company a strong position in the insurance industry and should help CVS better control overall healthcare costs for its clients. Show more

Sector
Drug & Proprietary Stores
Industry
Drug & Proprietary Stores
Headquarters
Wilmington, Delaware, USA
Founded
-
CVS Health Corporation is listed in the Drug & Proprietary Stores sector of the New York Stock Exchange with ticker CVS. The last closing price for CVS Health was $67.46. Over the last year, CVS Health shares have traded in a share price range of $ 52.7705 to $ 83.25.

CVS Health currently has 1,257,979,270 shares outstanding. The market capitalization of CVS Health is $84.86 billion. CVS Health has a price to earnings ratio (PE ratio) of 9.80.

CVS Health (CVS) Options Flow Summary

Overall Flow

Bullish

Net Premium

3M

Calls / Puts

214.29%

Buys / Sells

103.33%

OTM / ITM

178.26%

Sweeps Ratio

0.00%

CVS Latest News

New CVS Health® report explores ongoing transformation of community pharmacy

New CVS Health® report explores ongoing transformation of community pharmacy PR Newswire WOONSOCKET, R.I., Oct. 15, 2024 CVS Health/Morning Consult survey reveals most pharmacy teams and...

TSMC To Exceed Profits, Plans European Factories; Boeing Cuts 17,000 Jobs; Berkshire Boosts Sirius XM Stake

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) – TSMC is planning new factories in Europe focused on AI chips after starting construction on its first plant in Dresden, Germany...

Aetna recommended for new D-SNP contract by the State of Michigan

Aetna recommended for new D-SNP contract by the State of Michigan PR Newswire DETROIT, Oct. 11, 2024 Aetna to support more Michigan residents eligible for both Medicare and Medicaid DETROIT, Oct...

Aetna shines in Star Ratings with 88 percent of Medicare Advantage members in 4-star plans or higher for 2025

Aetna shines in Star Ratings with 88 percent of Medicare Advantage members in 4-star plans or higher for 2025 PR Newswire WOONSOCKET, R.I., Oct. 10, 2024 Exceptional service results in...

CVS Health supporting customers, patients, members and colleagues as Hurricane Milton approaches

CVS Health supporting customers, patients, members and colleagues as Hurricane Milton approaches PR Newswire WOONSOCKET, R.I., Oct. 8, 2024 WOONSOCKET, R.I., Oct. 8, 2024 /PRNewswire/ -- CVS...

CVS Health to hold third quarter 2024 earnings conference call

CVS Health to hold third quarter 2024 earnings conference call PR Newswire WOONSOCKET, R.I., Oct. 7, 2024 WOONSOCKET, R.I., Oct. 7, 2024 /PRNewswire/ -- CVS Health® (NYSE: CVS) will hold a...

FARE and CVS Pharmacy® continue to partner on Teal Pumpkin Project for a more inclusive Halloween

FARE and CVS Pharmacy® continue to partner on Teal Pumpkin Project for a more inclusive Halloween PR Newswire McLEAN, Va. and WOONSOCKET, R.I., Oct. 3, 2024 For the third year, CVS Pharmacy is...

Aetna 2025 Medicare plans focus on most important health needs for members

Aetna 2025 Medicare plans focus on most important health needs for members PR Newswire WOONSOCKET, R.I., Oct. 1, 2024 Backed by the strength of CVS Health WOONSOCKET, R.I., Oct. 1, 2024...

Nio, CVS Health Should Rise; Stellantis Weak

U.S.-listed shares of Nio (NYSE:NIO) are moving sharply higher in pre-market trading after the Chinese electric vehicle maker announced a 13.3 billion yuan investment in Nio China from strategic...

CVS Health supporting customers, patients, members and colleagues as Hurricane Helene approaches

CVS Health supporting customers, patients, members and colleagues as Hurricane Helene approaches PR Newswire WOONSOCKET, R.I., Sept. 25, 2024 WOONSOCKET, R.I., Sept. 25, 2024 /PRNewswire/ -- CVS...

PeriodChangeChange %OpenHighLowAvg. Daily VolVWAP
1-0.3476-0.5318237454165.3667.79564.911163670766.64088188CS
46.642411.379818399958.3767.79557.131131689962.53219909CS
126.732411.551818805858.2867.79554.81962410459.96408449CS
26-4.0376-5.8473569876969.0571.6652.77051104567459.45737089CS
52-7.6276-10.500550660872.6483.2552.77051033367766.35659471CS
156-20.0176-23.541808773485.03111.2552.7705809487978.18310246CS
2601.39242.1886199308463.62111.2552.04788406274.75179083CS

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CVS Discussion

View Posts
DiscoverGold DiscoverGold 2 weeks ago
CVS Health Stock Bounces on Company Updates
By: Schaeffer's Investment Research | October 4, 2024

• CVS Health is considering splitting its retail pharmacy and insurance units

• TD Cowen also upgraded CVS to "buy" and hiked its price target to $85

Shares of CVS Health Corp (NYSE:CVS) are 3.9% higher to trade at $65.40 at last glance, after several updates for the healthcare giant. According to reports, CVS' insurance unit is facing higher-than-usual medical costs and other major issues. In response, the company is conducting a strategic review, and considering shifting from its long-held business strategy by splitting its retail pharmacy and insurance units.

Amid this big news, TD Cowen upgraded CVS Health stock to "buy" from "hold" and hiked its target price to $85 from $59, citing changes to the company's 2025 Medicare Advantage plan benefits as a catalyst. Coming into today, analyst sentiment was split, with 11 rating CVS a "hold" and 13 recommending a "buy" or better, leaving room for more bull notes to roll in.

Puts are more popular at the moment, and a change in the options pits could provide more support. This is per the security's 10-day put/call volume ratio of 0.78 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 83% of readings from the past 12 months. Echoing this, its Schaeffer's put/call open interest ratio (SOIR) of 0.59 stands in the elevated 73rd percentile of annual readings.

This shift looks to be taking place, with calls outpacing puts during today's trading. Already, more than 52,000 calls have crossed the tape, 6 times the average intraday volume and well above the 3,484 puts traded so far. Most popular by far is the weekly 10/11 69-strike call.

On the charts, today's bounce puts CVS Health stock on track to close above its 160-day moving average that's acted as resistance since early April. Shares are filling a post-earnings bear gap from April that sent them to their lowest levels since April 2020, resulting in a more than four-year low of $52.78. Pacing for its second consecutive weekly gain of more than 6%, CVS is still down more than 17% in 2024.

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DiscoverGold DiscoverGold 2 weeks ago
$CVS $1.6 Million Bullish OTM Call Order
By: Cheddar Flow | October 4, 2024

• $CVS $1.6M Bullish OTM Call Order

This has a lot of premium relative to recent CVS prints and was executed above the ask to show urgency



Read Full Story »»»

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DiscoverGold DiscoverGold 2 months ago
CVS Health reported earnings this morning:
By: TrendSpider | August 7, 2024

• CVS Health reported earnings this morning:

~EPS: $1.83 vs $1.73 est
~SALES: $91.23B vs $91.51B est
~Revises FY24 EPS guide to $6.40-$6.65 from at least $7.00

Read Full Story »»»

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DiscoverGold DiscoverGold 3 months ago
CVS Health Corporation (CVS) is Attracting Investor Attention
By: Zacks Investment Research | July 24, 2024

CVS Health CVS has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this drugstore chain and pharmacy benefits manager have returned -4.1% over the past month versus the Zacks S&P 500 composite's +1.8% change. The Zacks Retail - Pharmacies and Drug Stores industry, to which CVS Health belongs, has lost 9.3% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate Revisions

Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, CVS Health is expected to post earnings of $1.74 per share, indicating a change of -21.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $7 points to a change of -19.9% from the prior year. Over the last 30 days, this estimate has changed -0.2%.

For the next fiscal year, the consensus earnings estimate of $7.75 indicates a change of +10.8% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed -0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for CVS Health.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS


Zacks

Revenue Growth Forecast

While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For CVS Health, the consensus sales estimate for the current quarter of $91.56 billion indicates a year-over-year change of +3%. For the current and next fiscal years, $368.87 billion and $388.97 billion estimates indicate +3.1% and +5.5% changes, respectively.

Last Reported Results and Surprise History

CVS Health reported revenues of $88.44 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $1.31 for the same period compares with $2.20 a year ago.

Compared to the Zacks Consensus Estimate of $89.2 billion, the reported revenues represent a surprise of -0.86%. The EPS surprise was -22.49%.

Over the last four quarters, CVS Health surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

Valuation

Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

CVS Health is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CVS Health. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Read Full Story »»»

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DiscoverGold DiscoverGold 4 months ago
Bear of the Day: CVS Health (CVS)
By: Zacks Investment Research | June 17, 2024

Zacks Rank #5 (Strong Sell) stock CVS Health (CVS) is the largest retail pharmacy chain in the United States. The company operates in four main segments: health care benefits, health services, pharmacy and consumer wellness, and corporate/other. Though CVS is a household name, has been in business for more than 60 years, and is highly profitable, the company’s stock is facing several bearish headwinds that are company-specific and industry-wide.

Retail Theft Plagues Pharmacy Industry

Since 2018, the amount of lost retail revenue due to theft has grown each year consecutively and soared overall. For example, in 2018, retailers lost about $50 billion to theft. By 2024, projections call for retail theft losses to balloon to more than $130 billion and a whopping $143 billion by 2025. According to Capital One Financial (COF), “Retailers lost $112.1 billion in gross revenue and $84.9 billion in fraudulent sales returns in 2022.” Meanwhile, “The average shoplifting incident cost retailers $461.86 in 2020.”

Indeed, there is plenty of time and room for the political blame game. However, as investors, we must focus on what is going on and how it will impact the market while leaving the politics to the dinner table. Brazen organized retail incidents are becoming commonplace. What’s worse, shoplifters are caught roughly 2% of the time and arrested 1% of the time. The troubling trend is leading to higher expenses and worse profit margins.


Image Source: Zacks Investment Research

As a result, CVS and its main drugstore competitor, Walgreens Boots Alliance (WBA), have closed numerous stores in hard-hit areas of the country, such as California and New York. However, customers are turning away from brick-and-mortar drugstores in several open locations. In heavy crime zones like Manhattan, customers must flag down associates to gain access to the growing number of items locked behind protective glass. Instead of accepting the frustrating situation, many retail customers are taking their business to e-commerce retailers such as Amazon (AMZN) or PDD’s (PDD) Temu.

Poor Medicare Advantage Rating Squeezes CVS Profits

Medicare Advantage ratings, or Medicare Star Ratings, measure the performance of Medicare Advantage Part D plans. In 2023, CVS suffered a signficant setback when its largest MA plan, Aetna National PPO, saw its rating plunge from 4.5 to 3.5 stars.

Because of the headwinds above, year-over-year revenue growth at CVS has plunged since 2020.


Image Source: Zacks Investment Research

Relative Performance of CVS Shares Trending Down

CVS shares are down-trending and underperforming the general market by a wide margin – a sign of relative price weakness.


Image Source: Zacks Investment Research

Pharmacy Competitions is Heating Up

Major competitors such as Walgreens, Target (TGT) and Wal-Mart (WMT) are expanding their pharmacy businesses.

Bottom Line

Drugstore giant CVS faces numerous bearish headwinds, which are industry and company-specific. Investors should avoid shares over the next 6-12 months.

Read Full Story »»»

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DiscoverGold DiscoverGold 5 months ago
CVS Health $CVS is currently trading at new 52 WEEK LOWS
By: Evan | May 29, 2024

• CVS Health $CVS is currently trading at new 52 WEEK LOWS.



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DiscoverGold DiscoverGold 5 months ago
Bear of the Day: CVS Health (CVS)
By: Zacks Investment Research | May 8, 2024

CVS Health (CVS) is a Zacks Rank #5 (Strong Sell) that is a prominent player in the health solutions sector in the United States.

The stock has had a rough couple of years but has held up until recently. A recent earnings surprise miss has taken away a lot of hope from investors and the stock has now fallen near COVID lows.

The earnings miss seen last week was the first since 2015, which is making investors very nervous about what the rest of 2024 may hold.

About the Company

CVS has been in operation since its incorporation in 1996 and is based in Woonsocket, Rhode Island. The company employs 219,000.

CVS caters to various customer groups, including employer groups, individuals, healthcare providers, and governmental units. Its Health Care Benefits segment provides health insurance products and services, while the Health Services segment offers pharmacy benefit management solutions. Additionally, the Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, beauty products, and personal care items, operating through various channels such as online retail pharmacies and specialty stores.

CVS is valued at $70 billion and has a Forward PE of 7. The stock holds Zacks Style Scores of “A” in Growth and Value, and “B” in Momentum. CVS pays a dividend of 4.75%.

Q1 Earnings

Last Wednesday, CVS Health reported an EPS miss of $1.31, falling short of the expected $1.69 per share. Revenue also missed estimates, coming in at $88.4 billion compared to the expected $89.2 billion.

This disappointing performance prompted a downward revision of the company's outlook for fiscal year 2024, with adjusted earnings per share now expected to be "at least" $7.00, down from the previous estimate of $8.31.

Similarly, cash flow from operations for FY24 has been revised downwards to at least $10.5 billion, signaling a significant reduction from the previous projection of $12.0-12.5 billion.

Several factors have contributed to this downward revision, including near-term challenges in the Medicare Advantage segment. The company cited a medical benefits ratio of 90.4% in Q1, a notable increase from 84.6% year-on-year, indicating increased pressure on healthcare spending. Additionally, the Health Care Benefits segment witnessed a decline in operating margin from 7.0% to 2.3% year-on-year, reflecting operational challenges and cost pressures.

Management acknowledged the difficulties faced by the company, attributing some of the challenges to external factors such as the cyberattack on Change Healthcare, which impaired the visibility of medical claims in Q1.

Earnings Estimates

Over the last 7 days, earnings estimates have been slashed by analysts.

For the current quarter, estimates plunged from $2.21 to $1.83, or 17%. For the next quarter, estimates have been lowered by 7%.

For the current year, we see an 11% drop, with estimates falling from $8.29 to $7.35

For next year, the last 7 days have seen a 13% drop, falling from $9.08 to $7.94.

Analysts have also been lowering price targets since earnings. Some more notable names include UBS going from $85 to $60 and Morgan Stanley dropping to $65 from $85.

Technical Take

The COVID lows for CVS were just under $52. The stock is now under 10% away from that spot where it may find support.

Additionally, the dividend is around 5%, which could be attractive to investors If interest rates start coming down.

However, the fundamental issues have been showing themselves on the chart for about a year. The stock is down almost 50% since the start of 2023 and should be considered a falling knife that one should avoid.

Investors should be patient and wait until technical support is confirmed. Some levels to watch are $52, $44, and $39.

The 200-day moving average is way up at $72 and the 21-day is at $66.

In Summary

Investors should exercise caution and closely monitor CVS Health's performance in the coming quarters. With headwinds mounting and growth prospects uncertain, the company faces a pivotal juncture in its journey toward sustaining profitability and enhancing shareholder value.

For those interested in the space, a better option might be Walgreens Boots Alliance (WBA). While the company has seen many of the same issues as CVS, the stock is a Zacks Rank #3 (Hold) that is coming off a 46% EPS beat.

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DiscoverGold DiscoverGold 5 months ago
$CVS Two insiders at CVS bought a combined $554K in shares yesterday after the -20% haircut from earnings.
By: TrendSpider | May 4, 2024

• $CVS BLOOD BUYERS SPOTTED.

Two insiders at CVS bought a combined $554K in shares yesterday after the -20% haircut from earnings.



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DiscoverGold DiscoverGold 6 months ago
Gear Up for CVS Health (CVS) Q1 Earnings: Wall Street Estimates for Key Metrics
By: Zacks Investment Research | April 26, 2024

The upcoming report from CVS Health CVS is expected to reveal quarterly earnings of $1.69 per share, indicating a decline of 23.2% compared to the year-ago period. Analysts forecast revenues of $89.22 billion, representing an increase of 4.6% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

In light of this perspective, let's dive into the average estimates of certain CVS Health metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts forecast 'Net revenue- Health Services segment' to reach $41.23 billion. The estimate points to a change of -7.5% from the year-ago quarter.

The combined assessment of analysts suggests that 'Revenue- Pharmacy & Consumer Wellness Segment' will likely reach $29.67 billion. The estimate points to a change of +6.3% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Health Care Benefits' should come in at $30.75 billion. The estimate suggests a change of +18.8% year over year.

The consensus estimate for 'Revenue- Health Care Benefits Segment- Services' stands at $1.44 billion. The estimate indicates a change of +4.6% from the prior-year quarter.

Based on the collective assessment of analysts, 'Medical benefit ratio (MBR)' should arrive at 88.3%. Compared to the present estimate, the company reported 84.6% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Medical membership - Total' of 26,542.28 thousand. The estimate is in contrast to the year-ago figure of 25,513 thousand.

The consensus among analysts is that 'Medical membership - Medicaid - Total' will reach $2.40 billion. The estimate compares to the year-ago value of $2.79 billion.

The average prediction of analysts places 'Medical membership - Medicare Advantage - Total' at 4,031.44 thousand. The estimate compares to the year-ago value of 3,387 thousand.

Analysts expect 'Medical membership - Commercial - Total' to come in at 18,770.50 thousand. The estimate is in contrast to the year-ago figure of 17,988 thousand.

Analysts predict that the 'Medical membership - Insured - Medicare Supplement' will reach $1.35 billion. Compared to the present estimate, the company reported $1.34 billion in the same quarter last year.

It is projected by analysts that the 'Pharmacy claims processed' will reach 463.11 million. The estimate is in contrast to the year-ago figure of 587.3 million.

Analysts' assessment points toward 'Medical membership - ASC - Commercial' reaching 14,253.67 thousand. Compared to the present estimate, the company reported 14,039 thousand in the same quarter last year.

CVS Health shares have witnessed a change of -15.6% in the past month, in contrast to the Zacks S&P 500 composite's -3.2% move. With a Zacks Rank #4 (Sell), CVS is expected underperform the overall market performance in the near term.

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DiscoverGold DiscoverGold 6 months ago
CVS Health $CVS just confirmed it will be reporting Q1 earnings before the markets open on Wednesday, May 1st
By: Evan | April 1, 2024

CVS Health $CVS just confirmed it will be reporting Q1 earnings before the markets open on Wednesday, May 1st

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3antar 3antar 8 months ago
Looking great so far.. let's go
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DiscoverGold DiscoverGold 8 months ago
$CVS higher in pre-market following a double earnings beat
By: TrendSpider | February 7, 2024

• $CVS higher in pre-market following a double earnings beat.

~EPS: $2.12 vs $1.99 est
~SALES: $93.81B vs $90.36B est

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DiscoverGold DiscoverGold 9 months ago
Is the Worst Over for CVS Health Stock?
By: Schaeffer's Investment Research | January 29, 2024

• The security could bounce off the 80-day trendline

• CVS shed more than 16% in the last 12 months

CVS Health Corp (NYSE:CVS) stock was last seen up 0.6% at $73.40, extending a bounce off the $70 level. While the security carries a 16.9% year-over-year deficit and last week fell under its 50-day moving average for the first time since December, there's indication this underperformance could soon be a thing of the past. CVS Health stock's most recent pullback placed it within a trendline with historically bullish implications.

Specifically, CVS is within one standard deviation of its 80-day trendline. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, the security saw no fewer than five similar signals in the last three years, defined for this study as having traded north of this moving average 80% of the time during the last two months, and in eight of the past 10 trading days.



CVS was higher one month later in 80% of those instances, with an average 3.9% gain. A move of similar magnitude from its current perch would place the security back above $76.

Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day call/put volume ratio sits in the 80th percentile of its annual range. This means an unwinding of pessimism could boost CVS.

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DiscoverGold DiscoverGold 9 months ago
Healthcare Stocks Slide After Humana Forecast
By: Schaeffer's Investment Research | January 18, 2024

• Humana's disappointing 2023 profit outlook is weighing on healthcare sector

• Humana stock is trading at two-year lows after the report

The healthcare sector is taking a hit after Humana Inc (NYSE:HUM) today slashed its 2023 profit outlook, citing higher-than-anticipated medical costs in the fourth quarter. UnitedHealth Group Inc (NYSE:UNH) and CVS Health Corp (NYSE:CVS) are two notable names falling after the report, as both extend an already rocky start to 2024.

At last glance, Humana stock is trading at two-year lows, down 10.9% at $398.84 -- earlier as low as $390.50 -- and on the short sell restricted (SSR) list. Since last January, HUM is down 17.5%. So far in the options pits, 20,000 calls and 23,000 puts have been exchanged, which is already 4.2 times the average daily volume. The January 2026 400-strike put is the most popular, where new positions are being opened.

Meanwhile, UnitedHealth Group stock was last seen down 2.8% at $510.04, hitting $497.96 at its lowest level today. Sinking below its 140-day moving average, which previously caught a pullback this month, the equity is currently grappling with its 200- and 320-day trendlines. Since last January, the security is up 7.1%. In the options pits, UNH is seeing three times the volume typically seen at this point, with the most activity at the January 500 put.

The shares of CVS Health stock were last seen down 4.6% at $73.42, though potential support lingers just below at the 80-day moving average, as well as former pressure at the $72 region. Today's drop has the stock on track for its seventh daily loss in the last eight sessions. Year-over-year, the equity is down 16.7%. Options traders are targeting CVS at triple the usual intraday volume as well, with new positions being opened at the most active contract, the January 70 put.

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3antar 3antar 9 months ago
I like the buy rating and the $94 price target set by HSBC.
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krobar krobar 10 months ago
After the stock has rallied 10 points
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CVS sell-off overdone says HSBC, Walgreens Boots Alliance 'execution risks are significant'
By: Investing | December 22, 2023

HSBC initiated CVS Health (NYSE:CVS) with a Buy rating and Walgreens Boots Alliance (NASDAQ:WBA) with a Hold rating in a note to clients Friday, stating healthcare business models have been in constant flux.

While the market is still quite fragmented, HSBC believes there are attractive growth opportunities.

CVS was assigned a $94 per share price target, implying a potential 21.7% upside from current levels. The bank said the company has an attractive and undervalued moat and is trading at a steep discount to historical levels.

In addition, HSBC said that with the company's shares "down roughly 18% LTM (vs SPX up by 23% over the same period)," the sell-off "appears overdone."

WBA was assigned a $27 per share price target. HSBC believes the company requires operational discipline to improve its execution, boost overall performance, and restore profitability.

Furthermore, while WBA faces "near-term operational challenges," it could unlock value, but the "execution risks are significant," according to analysts.

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Earnings expectations now reset for CVS says BofA as stock rally extends
By: Investing | December 6, 2023

CVS Health (NYSE:CVS) stock has continued to rally on Wednesday, extending a two-day rally to as much as 8.6%.

The surge follows the pharmacy chain's positive 2024 revenue guidance and the introduction of a new reimbursement model aimed at simplifying drug pricing.

Walgreens Boots (NASDAQ:WBA), a peer in the industry, also saw an increase of up to 4.2%.

Analysts at Bank of America view CVS's adjusted earnings growth expectations as appropriately reset for the intermediate term and believe the new reimbursement model could have a significant impact on the prescription ecosystem.

The firm maintains a Buy rating with a price target of $86.

“Overall, CVS has a differentiated brand versus other health plans (given the retail/consumer footprint) which uniquely positions CVS to engage with members across the continuum. CVS’ introduction of a new CVS Health app that integrates an entire member’s experience into one smartphone application creates optionality for synergies between operating segments and we expect the company to speak about this more over time.”

“Further, CVS’ segment level detail provided us with increased confidence the company can execute against and outperform mid-to-high single digit EPS growth targets.”

CVS's year-to-date decline now stands at 21%.

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CVS Health adds 2% as 2024 revenue outlook tops estimates
By: Investing | December 5, 2023

CVS Health (NYSE:CVS) has forecasted revenue for 2024 to be at least $366 billion, which exceeds the current Street estimate of $345.5 billion.

The company anticipates adjusted earnings per share of at least $8.50, in line with the consensus, with the cash flow from operations projected to be at least $12.5 billion. Updates were shared ahead of the company’s 2023 Investor Day.

CVS shares rose 2.2% on the news.

CVS Health also said it plans to introduce a new pharmacy reimbursement model called CVS CostVantage, aimed at evolving the traditional reimbursement model and providing greater transparency and simplicity.

"We are leading with an approach that will shift how our retail pharmacy is compensated by implementing a more transparent and sustainable model that fairly aligns pharmacy reimbursement to the quality services we provide," said Prem Shah, PharmD, executive vice president, Chief Pharmacy Officer and President, Pharmacy and Consumer Wellness, CVS Health.

This new approach is scheduled to be launched with pharmacy benefit managers (PBMs) for commercial payors in 2025.

The company also reaffirmed its financial guidance for the year 2023. It continues to see adjusted EPS at $8.60 (up or down 10 cents) on revenue in the range of $351.5-357.3 billion.

The average analyst estimate is $8.60 for FY23 EPS on revenue of $353.7 billion.

"We are successfully executing on our strategy to advance the future of health care while unlocking new value for consumers," said CVS Health President and CEO Karen S. Lynch.

CVS Health has approved a quarterly dividend of $0.665 cents per share, marking a 10% increase from the previous dividend of $0.605 cents per share. The dividend will be payable on February 1, 2024, to shareholders of record as of January 22, 2023.

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Bridgewater Associates LP Acquires 212,648 Shares of CVS Health Co. (CVS)
By: MarketBeat | November 24, 2023

• Bridgewater Associates LP boosted its holdings in CVS Health Co. (NYSE:CVS) by 8.6% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,686,418 shares of the pharmacy operator's stock after buying an additional 212,648 shares during the period. CVS Health makes up about 1.1% of Bridgewater Associates LP's investment portfolio, making the stock its 17th biggest position. Bridgewater Associates LP owned approximately 0.21% of CVS Health worth $185,712,000 at the end of the most recent quarter...

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CVS Health Giant Prepares for Earnings Call
By: Schaeffer's Investment Research | October 31, 2023

• CVS Health is set post earnings before the market opens tomorrow

• CVS has a history of positive post-earnings moves

Pharmaceutical concern CVS Health Corp (NYSE:CVS) will enter the earnings confessional before the open tomorrow. The mean analyst earnings estimate is $2.13 per share, with revenue expected to rise to $88.25 billion year on year for the third quarter.

Looking back at CVS Health's last eight quarterly reports, the company's shares tend to move higher after earnings. Over the last two years, all but two post-earnings sessions finished positive. The security averaged a 4.4% swing, regardless of direction, the day after reporting results, and the options pits are pricing in a nearly 8.4% move this time around.

Ahead of the event, CVS Health stock was last seen 0.6% higher at $68.44, though it's struggled for most of the year on the charts, down 26.4% in 2023. A mid-August bear gap sent CVS to its lowest level since November 2020, just above the $64.50 mark. The equity pulled sharply back last week as well, though the $66 level stepped up to stymie the losses.



In the options pits, CVS sports 50-day put/call volume ratio of 1.17 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 92% of all other readings from the past 12 months, suggesting a much healthier appetite for puts over the last 10 weeks.

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CVS Health Co. (CVS) Shares Acquired by C2C Wealth Management LLC
By: MarketBeat | September 30, 2023

• C2C Wealth Management LLC lifted its position in shares of CVS Health Co. (NYSE:CVS) by 46.6% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 35,769 shares of the pharmacy operator's stock after buying an additional 11,373 shares during the quarter. C2C Wealth Management LLC's holdings in CVS Health were worth $2,555,000 at the end of the most recent quarter...

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abrooklyn abrooklyn 1 year ago
CVS Health announces quarterly dividend

Source: PR Newswire (US)
WOONSOCKET, R.I., Sept. 21, 2023 /PRNewswire/ -- CVS Health (NYSE: CVS) has announced that its board of directors has approved a quarterly dividend of sixty and a half cents ($0.605 cents) per share on the Common Stock of the Corporation. The dividend is payable on November 1, 2023, to holders of record on October 20, 2023.

About CVS Health
CVS Health® is the leading health solutions company, broadening access to care for millions of people nationwide. We improve the health of communities across America through our local presence, digital channels and with over 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. We support individuals with their health – whether that's managing health conditions, staying compliant with their medications or accessing affordable health services in the most convenient ways. Our goal is to create seamless connections across the health care system, simplifying the experience and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Follow @CVSHealth on social media.

CVS Health logo (PRNewsFoto/CVS Health)





Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cvs-health-announces-quarterly-dividend-301935002.html

SOURCE CVS Health Corporation


Copyright 2023 PR Newswire
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CVS Health Co. (CVS) Stake Lifted by Renaissance Technologies LLC
By: MarketBeat | September 9, 2023

• Renaissance Technologies LLC increased its stake in shares of CVS Health Co. (NYSE:CVS) by 97.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,069,953 shares of the pharmacy operator's stock after buying an additional 2,508,500 shares during the quarter. CVS Health comprises approximately 0.5% of Renaissance Technologies LLC's holdings, making the stock its 23rd largest position. Renaissance Technologies LLC owned 0.40% of CVS Health worth $376,748,000 at the end of the most recent reporting period...

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10 Most Oversold S&P 500 Stocks - $CVS $DLTR $C $JNJ make the list
By: Barchart | September 2, 2023

• 10 Most Oversold S&P 500 Stocks - $CVS $DLTR $C $JNJ make the list.



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$CVS Amazon's good news was bad news for this one. Tailed and recovered 66, that is the spot to hold now
By: Options Mike | August 20, 2023

• $CVS Amazon's good news was bad news for this one. Tailed and recovered 66, that is the spot to hold now.

Gap above if they shake this off.



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Blue Shield of California looks to cut reliance on CVS, taps Amazon
By: Investing.com | August 17, 2023

(Reuters) -Non-profit insurer Blue Shield of California plans to depend less on CVS Health (NYSE:CVS) as its pharmacy benefit manager and work with others such as Amazon.com (NASDAQ:AMZN) and Mark Cuban's drug firm to reduce reliance on companies that negotiate drug prices.

CVS shares slid over 6%, while rivals Cigna (NYSE:CI) Group and UnitedHealth Group (NYSE:UNH), which also have pharmacy benefit management units, fell 5% and 1%, respectively, in early trade.

Pharmacy benefit managers (PBMs), which maintain lists of drugs covered by health insurance plans and negotiate prices with manufacturers, have recently come under scrutiny from lawmakers for their role in rising healthcare costs.

Blue Shield, which has health plans that cover 4.8 million members, said it will now work with five different companies, including Mark Cuban Cost Plus Drug Company, to provide "convenient, transparent access to medications while lowering costs".

"Many in the industry will likely be watching this situation closely as managing the five partnerships could prove tricky , but if it (Blue Shield) is successful, we could see additional regionals move more in a similar direction," said Elizabeth Anderson, analyst at Evercore ISI.

Blue Shield will still retain CVS Caremark for its specialty pharmacy services, while Amazon will provide delivery of prescription medications as well as upfront pricing. Mark Cuban Cost Plus Drug Company will work to reduce surprise drug costs at the pharmacy pick-up counter.

"We look forward to providing care for Blue Shield of California's members who require complex, specialty medications – as we have for nearly two decades," CVS said in a statement.

Privately held Abarca will pay prescription drug claims, while smaller PBM Prime Therapeutics would work with Blue Shield to negotiate savings with drugmakers, the non-profit insurer said.

Blue Shield said it expects to save up to $500 million in annual drug costs once its multi-year strategy is fully implemented.

The loss of the Blue Shield pharmacy benefit management contract is another blow to Caremark, which is also set to lose the contract to manage Centene (NYSE:CNC)'s $40 billion annual pharmacy needs from next year.

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CVS Health lowers 2024 guidance despite second-quarter profit beat
By: Investing.com | August 2, 2023

CVS Health (NYSE:CVS) reported better-than-expected profit and revenue in the second quarter, but higher medical costs and a sweeping restructuring push led the healthcare giant to lower its 2024 earnings outlook and scrap its 2025 guidance.

Adjusted earnings per shares during the three months until the end of June slipped to $2.21 from $2.53 last year, but still beat consensus estimates of $2.13. Meanwhile, revenue rose 10.3% to $88.92 billion, topping forecasts of $86.41 billion.

"Our diversified business model delivered strong results this quarter," Chief Executive Officer Karen S. Lynch said in a statement. "We continue to execute on our strategy to expand access to health services across our care delivery channels and strengthen our engagement with consumers to improve their health and well-being."

According to Reuters, the Rhode Island-based pharmacy chain said that it would slash about 5,000 non-customer facing roles in order to control expenses following a string of acquisitions. CVS recently purchased home health care services firm Signify Health for $8B and primary care provider Oak Street Health for $10.6B in a bid to expand the scope of the business beyond health insurance and pharmacies.

The group booked a restructuring charge of $496 million that was linked to the layoffs and other impairments, Reuters added.

Meanwhile, CVS backed its 2023 adjusted earnings guidance of $8.50 to $8.70. However, it expects its medical benefit ratio -- a ratio of claims paid to premium collected -- to come in at the higher end of its outlook of 84.7%, plus or minus 50 basis points. The number, which is used by CVS to gauge the performance of its insurance unit, has come under scrutiny following a post-COVID surge in demand for elective surgeries that were delayed during the pandemic.

The company also cut its 2024 adjusted income outlook, citing the impact of both the strategic overhaul and the elevated medical expenses. Chief Financial Officer Shawn Guertin said in a conference call that the firm now sees profit next year at between $8.50 to $8.70 a share, down from the prior forecast of $9 per share. Its 2025 adjusted earnings per share guidance of $10 was also withdrawn.

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CVS Health (CVS) beats profit estimates, starts restructuring to cut costs
By: Investing.com | August 2, 2023

(Reuters) - CVS Health Corp reported better-than-expected second-quarter earnings on Wednesday, and said it had begun implementing a restructuring program to cut costs after a recent spree of acquisitions.

The company has been expanding beyond health insurance and pharmacies with its buyouts of primary-care provider Oak Street Health and home healthcare services firm Signify Health.

CVS Health (NYSE:CVS), which completed the acquisitions earlier this year, has flagged higher-than-expected transaction and integration costs related to the deals.

The company said it recorded $496 million in pre-tax charges related to a restructuring program it started during the quarter to rein in costs.

CVS, which has a large retail pharmacy chain, a health insurance business and a pharmacy benefit management (PBM) unit, has said it would pause acquisitions in the near term but may look at "additional opportunities" over a longer timeframe.

Excluding items, the company reported a profit of $2.21 per share, above analysts' average estimate of $2.11 per share, boosted by strength in its PBM unit, which negotiates drug prices with manufacturers.

Sales at CVS' health services segment, which contains its PBM unit, rose 7.6% to $46.22 billion in the reported quarter compared with a year earlier.

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Easterly Investment Partners LLC Raises Stock Position in CVS Health Co. (CVS)
By: MarketBeat | July 21, 2023

• Easterly Investment Partners LLC increased its stake in CVS Health Co. (NYSE:CVS) by 120.1% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 162,291 shares of the pharmacy operator's stock after purchasing an additional 88,568 shares during the quarter. Easterly Investment Partners LLC's holdings in CVS Health were worth $12,060,000 at the end of the most recent quarter...

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CVS Health Sees Unusually High Options Volume (CVS)
By: MarketBeat | July 19, 2023

• CVS Health Co. (NYSE:CVS) was the target of unusually large options trading activity on Wednesday. Investors acquired 197,703 call options on the company. This is an increase of approximately 407% compared to the average daily volume of 38,994 call options...

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CVS Health Co. (CVS) Receives Consensus Rating of "Moderate Buy" from Brokerages
By: MarketBeat | June 24, 2023

• Shares of CVS Health Co. (NYSE:CVS) have received an average rating of "Moderate Buy" from the sixteen brokerages that are covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating on the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $107.26...

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Keel Point LLC Acquires 9,921 Shares of CVS Health Co. (CVS)
By: MarketBeat | June 16, 2023

• Keel Point LLC grew its holdings in shares of CVS Health Co. (NYSE:CVS) by 26.4% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 47,499 shares of the pharmacy operator's stock after acquiring an additional 9,921 shares during the period. Keel Point LLC's holdings in CVS Health were worth $3,530,000 as of its most recent filing with the Securities and Exchange Commission (SEC)...

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Is It Time To Bet On CVS?
By: Barchart | June 7, 2023

The June/July issue of Fortune is out. It is dedicated to its Fortune 500 rankings. One CEO who appears prominently in the magazine is CVS (CVS) CEO, Karen Lynch.

Not only does Lynch appear in an article lamenting that despite the number of female and Black CEOs in the Fortune 500, it's still an abysmal record. I couldn’t agree more.

However, that’s not why I’ve brought up Lynch’s name.

The reason I’m talking about Lynch is that she appears in a second article in Fortune’s latest issue discussing Big Healthcare and whether it will be able to fix what ails America’s healthcare system.

CVS stock is down 24% year-to-date and up just 7% over the past five years. While the article paints a positive picture of CVS’s contribution to fixing healthcare in America, the appearance in Fortune could be a curse rather than a blessing.

My big question is whether it’s time to bet on CVS.

The Upside For CVS

First of all, for all those like me who didn’t know this juicy factoid: Fortune points out that the company began life as the Consumer Value Store, hence the CVS acronym. I’m a business history freak, so that’s one to file away, but I digress.

Since Lynch became CEO in 2021, she’s made two mid-sized acquisitions: In September 2022; the company announced that it would acquire Signify Health for $8 billion. It completed its acquisition of the home healthcare provider in late March.

“This transaction advances our value-based care strategy by enhancing our presence in the home,” Lynch stated in CVS’s press release announcing the acquisition’s completion. “Our expanded capabilities will bring us closer to the consumer as we continue to redefine how people access and experience care that is more affordable, convenient and connected."
In February, CVS announced a second multi-billion-dollar acquisition, agreeing to pay $10.6 billion for Oak Street Health. This primary care provider operates storefront clinics in lower-income neighborhoods in 21 states.

“Combining Oak Street Health's platform with CVS Health's unmatched reach will create the premier value-based primary care solution,” Lynch said in February, announcing the deal. “Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”

The company’s transformation from a pharmacy chain to a pharmacy benefit manager to a primary care provider and, ultimately, to representing your entire healthcare ecosystem started years ago but is now accelerating under Lynch.

“While recognizing that we have shareholders, and a lot of different stakeholders, my personal passion is, ‘How do we improve the health care system?’?” Lynch told Fortune. “We have the opportunity to really drive engagement, simplicity, effectiveness—and to drive patients to the right care at the right time, in the right places.”

While there is no doubt that the stakes are high, if CVS can walk the fine line between altruistically helping patients and profiting handsomely from doing so, five to 10 years from now, those holding over the entire period will be greatly rewarded for their patience and loyalty in the plan.

That said, its stock has performed poorly in recent years precisely because investors doubt its long-term strategy.

The Big Downside to Its Vision

As Fortune points out, CVS is one of several large healthcare companies looking to transform the American healthcare system through value-based care, a panacea that might not come to fruition.

“In conversations with a couple dozen stakeholders, including three former CMS administrators, about Big Health Care’s fitness for the value-based care role, most opinions landed between skeptical and wait-and-see. Will care improve? Maybe, through better coordination. Will it lower costs? Unlikely. Is investment in primary care, whatever the source, a good thing? You bet,” Fortune contributors Maria Aspan and Erika Fry wrote.

So, if doctors, other health practitioners, and patients fail to buy into the value-based model pushed by companies like CVS, the expensive acquisitions Lynch and the company’s previous CEOs have made -- $130 billion since 2006 -- will have all been for nothing.

Let’s put it this way.

Before its acquisition spree began, CVS had $1.6 billion in long-term debt in 2005. That was 10.4% of its total assets. At the end of March, its long-term debt was $56.5 billion, or 23.6% of its total assets, more than double what it was less than 20 years ago.

Sure, its operating profits have grown from $2.0 billion in 2005 to $7.7 billion in 2022, a compound annual growth rate (CAGR) of 8.3%. However, the CAGR of its debt was nearly 23% over the same period.

With higher interest rates, this becomes a far more significant issue should the business model fail to gain the traction necessary to pay for all of this debt incurred.

Is It Time To Bet on CVS?

CVS has a trailing 12-month free cash flow of $17.4 billion. Based on an enterprise value of $145.4 billion, it has a free cash flow yield of 12%. I consider anything over 8% to be in value territory.

So, my answer would be yes, but only if you’re a patient investor. Lynch’s plan could take several years to play out.

I guess we’ll find out.

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Reyeton Reyeton 1 year ago
Our CEO on cover Fortune Magazine:

https://finance.yahoo.com/news/fortune-500-record-number-female-100000590.html
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CVS Health already bakes in more than the worst-case scenario, TD Cowen 'would add here'
By: Investing.com | May 19, 2023

TD Cowen analysts reiterated an Outperform rating and $111 price target on CVS Health (NYSE:CVS) in a note Friday, telling investors that the current trough valuation "overly discounts" near-term risks.

"We would add here," said the analysts. "Concerns over a number of issues, including PBM transparency and 340B volumes among others, have driven shares down ~25% since Feb., which is much more than a worst-case EPS impact of 16% (lose all 340B vol. & 20% of PBM AOI), or $1.42 to our 2024 adjusted EPS estimate of $9.03."

CVS shares have fallen more than 24% in 2023 and over 25% in the last 12 months, trading above the $69 mark.

They said the shares, which are currently trading near 10-year trough multiples, already bake in more than the worst-case scenario from the headwinds.

"At current levels, we view shares as very attractive, given they do not reflect the likelihood of CVS returning to low double-digit/mid-teens adjusted EPS growth starting in 2025, and recommend adding here," they concluded.

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Reyeton Reyeton 1 year ago
Will this give our share price a boost?

https://finance.yahoo.com/news/virginia-community-health-centers-aetna-140000796.html
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CVS Health to pause M&A and focus on integration
By: Investing.com | May 3, 2023

(Reuters) -CVS Health Corp said on Wednesday it would pause its recent acquisition spree as it focuses on integrating purchases of healthcare service provider Signify Health and primary care provider Oak Street Health.

CVS, which has a large retail pharmacy chain, and major health insurance and pharmacy benefit manager (PBM) units, like other healthcare rivals has been looking to broaden the services it offers.

CEO Karen Lynch said CVS will focus on integrating Signify and Oak Street with its other businesses in the near term.

Longer term, Lynch said, the company might look at additional opportunities in home or health services.

Rival Walgreens Boots Alliance (NASDAQ:WBA) in January also said it would not strike new deals in the short term after a spate of acquisitions in the healthcare space.

Major companies Amazon.com Inc (NASDAQ:AMZN) and Walgreens have expanded their healthcare business footprints, especially primary and urgent care, as they look to benefit from growth in the sector.

CVS cut its full-year profit forecast on Wednesday to account for transaction and integration costs related to the two deals, and its shares fell 3%.

The earlier-than-expected closing of the Oak Street deal on Tuesday is likely to result in increased interest costs for the year, analysts said. The deal was initially expected to close later this year.

CVS cut its 2023 adjusted earnings forecast to $8.50 to $8.70 per share from its prior view of $8.70 to $8.90.

Morningstar analyst Julie Utterback said investors might be disappointed that the company pushed down its profit forecast after completing the Oak Street acquisition this week.

Lynch said the early closure could weigh on CVS earnings in the short term, but would also enable the healthcare conglomerate to unlock cost cutting synergies earlier.

The company did beat Wall Street estimates for first-quarter profit and revenue on Wednesday, as a recovery in medical procedures boosted sales of prescription drugs.

CVS reported an adjusted profit of $2.20 per share for the first quarter, topping analysts' estimates by 11 cents, according to Refinitiv data.

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CVS Health reports 11% sales growth but cuts full-year earnings outlook as Oak Street deal closes
By: Morningstar | May 3, 2023

Revenues rise across all major business segments, even as regulatory pressures build on prescription-drug middlemen and Medicare Advantage

CVS Health (CVS) reported first-quarter earnings that beat analyst expectations Wednesday but cut its full-year guidance as it digests the acquisition of primary-care provider Oak Street Health.

The early close of the $10.6 billion deal for Oak Street, completed on Tuesday, "will be a short-term headwind" for 2023 earnings, CVS president and CEO Karen Lynch said on a conference call with analysts Wednesday. CVS cut its 2023 guidance for adjusted per-share earnings to a range of $8.50 to $8.70, down from $8.70 to $8.90.

Net income fell to $2.14 billion, or $1.65 per share, from $2.36 billion, or $1.77 per share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share fell to $2.20, from $2.30 a year earlier, but topped the FactSet consensus of $2.09. Revenue grew 11% to $85.28 billion, beating the FactSet consensus of $80.79 billion.

First-quarter revenues jumped in all three of CVS's major business segments, including healthcare benefits, health services, and pharmacy and consumer wellness.

The Oak Street acquisition comes on the heels of CVS's $7.8 billion acquisition of Signify Health, completed in March, boosting the company's presence in in-home services.

In the health services segment, which includes CVS's pharmacy benefit management business, revenues jumped 12.5% from a year earlier, to $44.59 billion, as the number of pharmacy claims processed increased 4% to 587 million. The results come as CVS, like other major players in the pharmacy benefit management business, faces growing scrutiny at the federal and state level. In Congress, lawmakers on both sides of the aisle have shown interest in reforming some PBM business practices, and executives from CVS and other major PBM players are slated to testify next week before the Senate Health, Education, Labor and Pensions Committee.

CVS has been targeted in some recent state-level actions against PBMs. The Minnesota Department of Commerce earlier this week fined CVS's Caremark PBM arm $500,000, alleging that the company steered patients to pharmacies or mail-order prescription services in which it had an ownership interest. And the Oklahoma Insurance Commission last month filed an administration action against CVS Caremark, alleging similar violations of state law.

CVS did not respond to a request for comment on the state actions. On the conference call Wednesday, Lynch addressed the scrutiny of PBMs generally, saying, "PBMs have consistently been found to operate in a highly efficient market and drive real savings to healthcare customers and members. Every day we deliver product choices for clients and members that help make care more affordable, accessible and simple."

Medicare Advantage is a key growth area for CVS but also faces regulatory pressures, as the federal government adjusts reimbursement rates and makes other tweaks that analysts expect may cut into industry growth. Heady Medicare Advantage growth rates seen in recent years "may decelerate and create some risk to the industry's 2024 growth prospects, in particular," Morningstar analyst Julie Utterback wrote in a recent research note.

"We have a long history of successfully working within Medicare Advantage funding levels to support program stability for our members," Lynch told analysts on the conference call Wednesday. CVS said it expects 12% membership growth in its Medicare Advantage business for the full year 2023. In late March, the City of New York awarded a Medicare Advantage contract for roughly 250,000 city retirees to CVS's Aetna unit--one of the largest client wins in Aetna's history, CVS said.

The end of the COVID-19 public health emergency next week will also make its mark on CVS, Lynch noted on the call Wednesday. The company's Medicaid business saw increased membership in the first quarter, Lynch said, but declines are expected for the rest of the year, after expiration of the public health emergency.

Pandemic-era legislation included a requirement that Medicaid programs keep people continuously enrolled for the duration of the public health emergency, but states can now resume redeterminations of eligibility, which may cause millions of people to lose health coverage, analysts say.

"As Medicaid members face potential disruption in their health benefits, we are using the full breadth of our portfolio of assets to help them avoid coverage losses and maintain positive health outcomes," Lynch said on the call.

In its retail business, CVS remains on track to close 300 stores this year and a cumulative total of 900 stores by 2024, Lynch said.

CVS shares are down 24% in the year to date, while the Health Care Select Sector SPDR ETF (XLV) is down 1.1% and the S&P 500 is up 7.7%.

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DiscoverGold DiscoverGold 2 years ago
Don't Expect CVS Health (CVS) Stock to Sustain Latest Rally
By: Schaeffer's Investment Research | April 4, 2023

• CVS stock is fresh off a two-year low

• CVS has already shed more than 18% this year

CVS Health Corp (NYSE:CVS) stock is trading at $76.17 at last check, pacing for its fourth win in five sessions. CVS carries a hefty 18.2% year-to-date deficit, thanks to a long pullback that started in mid-February before culminating in a March 23, two-year low of $72.10. Despite a brief bounce from this floor, CVS could soon slip again, too, if past is precedent.



The stock's recent low comes amid historically low implied volatility (IV), which has been been a bearish combination before. Schaeffer's Quantitative Analyst Rocky White's data shows three similar signals in the last five years when CVS was trading within 2% of its 52-week low, while its Schaeffer's Volatility Index (SVI) ranked in the 20th percentile of its annual range or lower. This is currently the case with CVS Health stock's SVI of 20%, which ranks in the low 12th percentile of its annual range.

One month after these signals, the equity was lower 67% of the time to average a 4% dip. From its current perch, a move of comparable magnitude would push the shares back below $74.

Additional headwinds could come from a round of downgrades and/or price-target hikes, given 14 of the 18 firms in coverage calling CVS Health stock a "buy" or better. Plus, the 12-month consensus target price of $112.71 is a whopping 48% premium to its current perch.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CVS carries a 50-day call/put volume ratio of 3.87 that sits higher than all but 4% of readings from the past year, suggesting a preference for bullish bets. Should this optimism start to unwind, shares could move lower still.

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Sanibel Island Sanibel Island 2 years ago
Millions about to loose Medicaid coverage as pandemic restrictions are lifted , google it for your own due deligence , most people are of color and Hispanic , will show in 2 nd quarter numbers
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DiscoverGold DiscoverGold 2 years ago
AHL Investment Management Inc. Increases Stock Holdings in CVS Health Co. (CVS)
By: MarketBeat | March 23, 2023

• AHL Investment Management Inc. grew its holdings in shares of CVS Health Co. (NYSE:CVS) by 6.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 31,846 shares of the pharmacy operator's stock after purchasing an additional 1,858 shares during the period. CVS Health comprises about 2.8% of AHL Investment Management Inc.'s portfolio, making the stock its 12th biggest position. AHL Investment Management Inc.'s holdings in CVS Health were worth $2,968,000 at the end of the most recent quarter...

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DiscoverGold DiscoverGold 2 years ago
Ranking Top 7% (18 out of 250) of the Industry, I must say I am disappointed with it's performance last few months. I don't know of any negative news. I intent to hold the stock for long term.

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Lockman Lockman 2 years ago
What is going on with CVS?
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DiscoverGold DiscoverGold 2 years ago
CVS Health Co. (CVS) Shares Bought by Leith Wheeler Investment Counsel Ltd.
By: MarketBeat | March 19, 2023

• Leith Wheeler Investment Counsel Ltd. grew its stake in shares of CVS Health Co. (NYSE:) by 31.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 41,775 shares of the pharmacy operator's stock after acquiring an additional 10,040 shares during the period. Leith Wheeler Investment Counsel Ltd.'s holdings in CVS Health were worth $3,893,000 at the end of the most recent reporting period...

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Lockman Lockman 2 years ago
Think we'll see 70.00
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leftovers leftovers 2 years ago
CVS Health (NYSE:CVS) declares $0.605/share quarterly dividend, in line with previous.

Forward yield 3.18%

Payable May 1; for shareholders of record April 21; ex-div April 20.
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ming1234 ming1234 2 years ago
POS
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DiscoverGold DiscoverGold 2 years ago
CVS Health confirms deal to buy Oak Street Health for $10.6 billion
By: Investing.com | February 8, 2023

CVS Health (NYSE:CVS) today confirmed it has reached an agreement to acquire Oak Street Health (NYSE:OSH) for $39 per share in cash, at an enterprise value of about $10.6 billion or an equity value of roughly $9.47B.

"Combining Oak Street Health's platform with CVS Health's unmatched reach will create the premier value-based primary care solution," said CVS Health President and CEO Karen Lynch. "Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient, and connected."

The Wall Street Journal reported in recent days that the two companies are close to reaching an agreement. As a result, OSH stock soared about 30% from the start of the week before adding a further 5% in pre-open Wednesday.

"This agreement with CVS Health will accelerate our ability to deliver on our mission and continue improving health outcomes, lowering medical costs, and providing a better patient experience while offering significant value to our shareholders," said Oak Street Health CEO Mike Pykosz.

After the transaction closes, Oak Street Health will become part of CVS Health's recently formed Health Care Delivery organization.

Commenting on the WSJ report, Raymond James analysts said yesterday that the deal is about 5% dilutive at $39 a share.

“Suffice to say that CVS has acknowledged that it is behind its competitors, needs an asset it can scale and OSH is the best asset left… The key uncertainty is what changes CVS might make to OSH’s growth plans, and we note that WBA substantially raised Village MD’s co-located store openings,” they wrote.

CVS shares are up about 1.3% in premarket Wednesday on OSH news, as well as better-than-expected Q4 results.

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DiscoverGold DiscoverGold 2 years ago
CVS Health Corp earnings beat by $0.07, revenue topped estimates
By: Investing.com | February 8, 2023

CVS Health Corp (NYSE: CVS) reported fourth quarter EPS of $1.99, $0.07 better than the analyst estimate of $1.92. Revenue for the quarter came in at $83.85B versus the consensus estimate of $76.33B.

Guidance

CVS Health Corp sees FY 2023 EPS of $8.70-$8.90 versus the analyst consensus of $8.86.

CVS Health Corp's stock price closed at $85.98. It is down -11.86% in the last 3 months and down -17.95% in the last 12 months.

CVS Health Corp saw 5 positive EPS revisions and 6 negative EPS revisions in the last 90 days. See CVS Health Corp's stock price’s past reactions to earnings here.

According to InvestingPro, CVS Health Corp's Financial Health score is "great performance".

Check out CVS Health Corp's recent earnings performance, and CVS Health Corp's financials here.

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