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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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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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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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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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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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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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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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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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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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CVS nearing $10.5 billion deal for primary-care provider Oak Street Health - WSJ
By: Investing.com | February 6, 2023
(Reuters) - CVS Health Corp (NYSE:CVS) is close to an agreement to acquire primary care center operator Oak Street Health Inc for about $10.5 billion including debt, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The companies are discussing a price of about $39 a share, the newspaper said.
The deal, if it goes through, could be announced as soon as this week, the report added.
CVS and Oak Street Health did not immediately respond to Reuters' requests for comment.
Bloomberg News reported last month that CVS was exploring a deal for Oak Street Health.
Oak Street Health runs primary care centers across the United States for recipients of Medicare, the U.S. government insurance program for Americans aged 65 and older, and has private equity firms such as General Atlantic and Newlight Partners among its shareholders.
CVS had also expressed interest in expanding into the primary care space, and was reportedly among the bidders to acquire primary care provider Cano Health before backing out.
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Earnings Preview: CVS Health Corp. (NYSE: CVS)
By: 24/7 Wall St. | February 6, 2023
• Here is a look at what analysts expect when the following three firms post their results first thing Wednesday morning.
CVS Health
The country’s third-largest provider of health care plans, CVS Health Corp. (NYSE: CVS) has seen its stock price rise dive by almost 21% in the past 12 months. Bloomberg reported last month that CVS is in discussions to acquire Oak Street Health’s brick-and-mortar centers for Medicare patients with low incomes and chronic health issues. New competition from Amazon for prescription drug sales may force CVS to protect its flank and put its diversification plans on hold. That competition is the primary reason for a drop of around 14% in CVS’s share price in just the past three months.
Analysts remain bullish on the stock, with 19 of 27 brokerages having a Buy or Strong Buy rating. The rest rate the shares at Hold. At a recent price of around $85.50 a share, the upside potential based on a median price target of $115.55 is about 35%. At the high price target of $130, the implied upside is 52%.
The consensus revenue estimate for the third quarter is $76.37 billion, which would be down 5.9% sequentially and by 0.3% year over year. Adjusted EPS are forecast at $1.93, down 10.1% sequentially and 2.5% lower year over year. For the full 2022 fiscal year, analysts are looking for EPS of $8.64, up 2.9%, and revenue of $314.7 billion, up about 7.7% year over year.
CVS stock trades at about 9.9 times expected 2022 EPS, 9.6 times estimated 2023 earnings of $8.86 and 8.9 times estimated 2024 earnings of $9.61 per share. The stock’s 52-week trading range is $84.82 to $111.25. CVS Health pays an annual dividend of $2.42 (yield of 2.82%). Total shareholder return for the past 12 months was negative 19.38%.
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CVS shutting down Medavail Spot Rex pharmacies inside all Cano Health locations, first step for buyout of Cano Health. CVS did not walk away from negotiations they just stalled until buying Medavail to get them out of Cano Health buildings.
