Is CVS Health Corporation (CVS) Good For Your Portfolio?

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CVS Health Corporation (NYSE:CVS) saw an upside of 0.23% to close Monday at $87.20 after adding $0.2 on the day. The 5-day average trading volume is 12,203,760 shares of the company’s common stock. It has gained $90.56 in the past week and touched a new high 1 time within the past 5 days. An average of 8,588,705 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 6,747,224.

CVS’s 1-month performance is -8.21% or -$6.36 on its low of $86.75 reached on 01/23/23. The company’s shares have touched a 52-week low of $86.28 and high of $111.25, with the stock’s rally to the 52-week high happening on 01/04/23. YTD, CVS has lost -6.43% or -$5.99 and has reached a new high 2 times. However, the current price is down -21.62% from the 52-week high price.

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Insider Transactions

CVS stock investors last saw insider trading activity on Dec 15.Moriarty Thomas M (EVP & General Counsel) most recently sold 137,466 shares at $98.36 per share on Dec 15. This transaction cost the insider $13,521,180. EVP&President-PharmacyServices, Lotvin Alan, sold 22,541 shares at a price of $104.00 on Aug 04. Then, on Aug 03, EVP/Pres, Health Care Benefits Finke Daniel P sold 9,546 shares at a price of $100.00 per share. This transaction amounted to $954,600.

Valuation Metrics

CVS stock has a beta of 0.68. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.37 while the price-to-book (PB) in the most recent quarter is 1.62, with the price to cash flow ratio at 6.92.

CVS Health Corporation’s quick ratio for the period ended September 29 was 0.70, with the current ratio over the same period at 0.90. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.72, while the total debt to equity was 0.74. In terms of profitability, the gross margin trailing 12 months is 39.20%. The firm’s gross profit as reported stood at $116.31 billion against revenue of $292.11 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, CVS Health Corporation’s cash and short-term investments amounted to $2.79 billion against total debt of $71.07 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 146.78% to -$3.42 billion, while revenue of $2.95 billion was 186.39% off the previous quarter. Analysts expected CVS to announce $1.99 per share in earnings in its latest quarter, but it posted $2.09, representing a 5.00% surprise. EBITDA for the quarter stood at more than -$2.88 billion. CVS stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 160.2 billion, with total debt at $71.07 billion. Shareholders hold equity totaling $1.31 billion.

Let’s look briefly at CVS Health Corporation (CVS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 21.81% to suggest the stock is trending oversold, with historical volatility in this time period at 8.90%.

The stock’s 5-day moving average is $87.85, reflecting a -3.02% or -$2.72 change from its current price. CVS is currently trading -7.35% above its 20-day SMA, -13.09% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -14.22% and SMA200 by-12.33%.

Stochastic %K and %D was 5.65% and 6.24% and the average true range (ATR) pointed at 1.50. The RSI (14) points at 26.21%, while the 14-day stochastic is at 6.76% with the period’s ATR at 1.63. The stock’s 9-day MACD Oscillator is pointing at -1.52 and -2.57 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for CVS Health Corporation (NYSE: CVS), Evercore ISI downgraded it to an In-line rating. They previously had an Outperform rating on the stock. Analysts offering their rating for CVS stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate CVS as a “sell,”, while 7 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 4 rates the stock as overweight while 13 have offered a “buy” rating.

What is CVS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $92.55 and a high of $130.00, with their median price target at $115.05. Looking at these predictions, the average price target given by analysts is for CVS Health Corporation (CVS) stock is $114.08.

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