CVS Health Shares Rally on Better-Than-Expected Earnings

Modesto Morganelli
Agosto 10, 2018

WOONSOCKET, R.I. (AP) _ CVS Health Corporation (CVS) on Wednesday reported a second-quarter loss of $2.56 billion, after reporting a profit in the same period a year earlier. Legacy Advisors LLC now owns 1,800 shares of the pharmacy operator's stock valued at $116,000 after acquiring an additional 1,775 shares during the last quarter.

"We're excited to be able to bring this innovative care option to patients", said Troyen A. Brennan, M.D., Executive Vice President and Chief Medical Officer of CVS Health.

Pharmacy benefit managers (PBMs) are in the crosshairs of the USA administration, which last month proposed a rule that would scale back protections now in place that allow rebates between drug manufacturers, insurers and PBMs. Forte Capital LLC ADV grew its holdings in CVS Health by 3.9% during the 2nd quarter. The company has a debt-to-equity ratio of 1.59, a current ratio of 2.37 and a quick ratio of 1.88. Quantbot Technologies LP acquired a new stake in shares of CVS Health in the 1st quarter valued at about $103,000. During the initial phase of testing, a CVS Health study found that 95 percent of patients who opted to receive a telehealth visit were highly satisfied with the quality of care they received. ValuEngine cut CVS Health from a "hold" rating to a "sell" rating in a report on Wednesday, May 2nd. Leerink Swann set a $85.00 target price on CVS Health and gave the stock a "buy" rating in a research note on Tuesday, April 10th. Three analysts have rated the stock with a sell rating, five have issued a hold rating, eleven have given a buy rating and two have issued a strong buy rating to the company's stock. Seventeen analysts surveyed by Zacks expected $46.39 billion. During the same period in the previous year, the company earned $1.33 earnings per share.

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 1st. Shareholders of record on Wednesday, July 25th were given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 3.06%.

The telemedicine service will be available at all hours every day in a partnership with virtual care company Teladoc on the CVS Pharmacy app. CVS Health's payout ratio is 33.90%.

"We believe that competition within each of the business segments in which we operate pharmacy benefit management, pharmacies and insurers is fierce and will remain so", the company said in a statement.

The AMA said that the $69 billion deal, announced in December, would lead to a "substantial reduction" of competition in pharmacy benefit (PBM) services market and the Medicare Part D prescription drug plan for seniors.

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