CVS Health Corporation (NYSE: CVS) has experienced a rise in its stock price by 1.32 compared to its previous closing price of 69.95. However, the company has seen a gain of 7.64% in its stock price over the last five trading days. InvestorPlace reported 2023-09-15 that Michael Burry, the legendary investor who famously predicted the 2008 financial crisis, made waves with his recent stock picks again. Burry’s insight and strategic thinking led him to invest in three seemingly disparate industries: healthcare, travel, and entertainment.
Is It Worth Investing in CVS Health Corporation (NYSE: CVS) Right Now?
CVS Health Corporation (NYSE: CVS) has a higher price-to-earnings ratio of 31.11x compared to its average ratio,, and the 36-month beta value for CVS is at 0.61. Analysts have varying views on the stock, with 19 analysts rating it as a “buy,” 2 rating it as “overweight,” 7 as “hold,” and 0 as “sell.”
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The average price suggested by analysts for CVS is $91.28, which is $20.07 above the current market price. The public float for CVS is 1.28B, and currently, shorts hold a 1.24% of that float. The average trading volume for CVS on September 18, 2023 was 9.51M shares.
CVS’s Market Performance
CVS stock saw a decrease of 7.64% in the past week, with a monthly decline of -2.54% and a quarterly a decrease of 1.97%. The volatility ratio for the week is 2.70%, and the volatility levels for the last 30 days are 2.19% for CVS Health Corporation (CVS). The simple moving average for the past 20 days is 5.62% for CVS’s stock, with a -9.44% simple moving average for the past 200 days.
Analysts’ Opinion of CVS
Many brokerage firms have already submitted their reports for CVS stocks, with Wolfe Research repeating the rating for CVS by listing it as a “Outperform.” The predicted price for CVS in the upcoming period, according to Wolfe Research is $80 based on the research report published on September 12, 2023 of the current year 2023.
CVS Trading at 0.01% from the 50-Day Moving Average
After a stumble in the market that brought CVS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -32.40% of loss for the given period.
Volatility was left at 2.19%, however, over the last 30 days, the volatility rate increased by 2.70%, as shares surge +6.09% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +1.91% upper at present.
During the last 5 trading sessions, CVS rose by +7.64%, which changed the moving average for the period of 200-days by -29.42% in comparison to the 20-day moving average, which settled at $67.30. In addition, CVS Health Corporation saw -23.95% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CVS starting from Clark James David, who sale 25,759 shares at the price of $74.92 back on Aug 03. After this action, Clark James David now owns 4,698 shares of CVS Health Corporation, valued at $1,930,004 using the latest closing price.
Lynch Karen S, the President and CEO of CVS Health Corporation, purchase 14,000 shares at $69.75 during a trade that took place back on May 03, which means that Lynch Karen S is holding 431,392 shares at $976,567 based on the most recent closing price.
Stock Fundamentals for CVS
Current profitability levels for the company are sitting at:
- +5.08 for the present operating margin
- +16.92 for the gross margin
The net margin for CVS Health Corporation stands at +1.29. The total capital return value is set at 11.18, while invested capital returns managed to touch 2.93. Equity return is now at value 4.10, with 1.20 for asset returns.
Based on CVS Health Corporation (CVS), the company’s capital structure generated 99.60 points at debt to equity in total, while total debt to capital is 49.90. Total debt to assets is 29.94, with long-term debt to equity ratio resting at 94.73. Finally, the long-term debt to capital ratio is 47.46.
When we switch over and look at the enterprise to sales, we see a ratio of 0.43, with the company’s debt to enterprise value settled at 0.40. The receivables turnover for the company is 12.49 and the total asset turnover is 1.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.94.
Conclusion
In conclusion, CVS Health Corporation (CVS) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
