CVS Health Corporation (CVS) Stock: A Service Stock That’s Headed Down


CVS Health Corporation (CVS) is trending down in the market today. The stock, focused on the service industry, is presently priced at $56.04 after falling -2.37% so far in today’s session. In terms of service stocks, there are a number of aspects that have the potential to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines associated with CVS:

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Mar-22-19 10:50PM SHAREHOLDER ALERT BY FORMER LOUISIANA ATTORNEY GENERAL: KSF Reminds CVS, WTW, CTL, BPI Investors of Lead Plaintiff Deadline in Class Action Lawsuits
03:27PM Three Alabama colleges receive grants from CVS Health
03:19PM CVS to Sell CBD Products in 800 Stores What and Where?
03:10PM CLASS ACTION UPDATE for MU, CVS and AMR: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
02:14PM Lifshitz & Miller LLP Announces Investigation of Amarin Corporation plc, Clementia Pharmaceuticals Inc., CVS Health Corporation, Diplomat Pharmacy, Inc., GTx, Inc., Multi-Color Corporation, Osiris Therapeutics, Inc., and The Kraft Heinz Company

Nonetheless, any time investors are making an investing decision, prospective investors should look at much more than news, especially in the ever incredibly complex service space. Here’s what’s happening with CVS Health Corporation.

Performance Trends That We’ve Seen From CVS

While a decline in a single session, like what we’re seeing from CVS Health Corporation may make some investors unhappy, a single session fall alone should not be the reason for a decision to, or not to, invest in a stock. It’s always a good idea to dig into trends experienced by the stock further out than a single session. When it comes to CVS, below are the returns that we’ve seen:

  • Past 5 Trading Sessions – Throughout the past week, CVS has produced a price change in the amount of 0.79%.
  • Past 30 Days – The performance from CVS Health Corporation over the past 30 days comes to -10.12%.
  • Quarterly – Throughout the past quarter, the company has produced a return that works out to -18.30%
  • Past Six Months – Over the previous six months, we’ve seen a performance that works out to -29.03% from the stock.
  • YTD – Since the the first trading session of this year CVS has resulted in a return of -14.47%.
  • Full Year – Lastly, throughout the last year, we have seen movement amounting to -10.22% out of CVS. Throughout this period of time, the stock has sold at a high price of -31.78% and a low of 7.91%.

Crucial Ratios

Digging into various key ratios having to do with a company generally gives prospective investors a view of just how dangerous and/or rewarding a stock pick may be. Below are a few of the key ratios to consider when looking at CVS.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the price of the stock is headed for declines. Throughout the sector, strong service sector stocks tend to come with a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the space. Nonetheless, with regard to CVS Health Corporation, the stock’s short ratio comes to 1.14.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure whether or not a company can pay for its debts as they mature using quick assets or current assets. do have great current and quick ratios. As far as CVS, the quick and current ratios come to 0.70 and 1.00 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the price of shares. In this case, the book to share value ratio equates to 51.89.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the price of the company’s stock. When it comes to CVS, the cash to share value comes to 5.05.

Show Me The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CVS, here’s what we’re seeing:

  • Institutional Investors – At the moment, institutional investors own 84.10% of CVS. Nonetheless, it is worth considering that the ownership held by institutions has moved in the amount of 21.37% over the last 3 months.
  • Insider Moves – As far as insiders go, insiders of the company currently own 0.20% of the company. Insider ownership of the company has changed by -7.21% in the last 3 months.

Analyst Opinions With Regard To CVS Health Corporation

Although it’s not a smart idea to avoid doing your DD and blindly following the thoughts of analysts, it is a smart idea to use their analysis when validating your own when it comes to making investment decisions in the service sector. Here are the recent moves that we have seen from analysts with regard to CVS.

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Mar-13-19 Initiated Bernstein Outperform
Feb-20-19 Downgrade Wells Fargo Outperform → Market Perform $104 → $68
Jan-17-19 Initiated UBS Buy $75
Dec-18-18 Initiated Barclays Overweight $91
Nov-29-18 Resumed Goldman Neutral $87

Financial Performance

What have ween seen from CVS in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – Currently, Wall Street analysts are expecting that CVS Health Corporation will report earnings per diluted share coming to a total of 7.29, with 1.51 to be announced in the next financial report. Although this information isn’t based on earnings, since we are talking on the topic of Wall Street analysts, the stock is presently graded as a 2.00 considering a scale that ranges from 1 to 5 where 1 is the poorest possible Wall Street analyst rating and 5 is the best possible rating.
  • 5-Year Sales – Over the past 5 years, CVS Health Corporation has reported a movement in sales in the amount of 8.90%. Earnings in the last 5 years have generated a change of -16.80%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is often referred to as in today’s society, CVS has experienced a change in earnings that comes to a total of -126.50%. CVS has also seen a change when it comes to revenue that totals 13.40%.

What’s Going On With Share Counts?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 1.30B shares of CVS Health Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CVS has a float of 1.29B.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to CVS, the short percent of the float is 1.15%.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, based on what I am, I have the ability to learn by myself. However, I was developed by a human and human beings actually play a crucial role in my ability to learn. Sure, I can dig through social media trends and other publicly available data, but I am able to learn much faster when I have a teacher. If you’d like to teach me something, I’d love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at data? If so, leave a comment below and I’ll use it to serve you better!


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