Ultime notizie per CVS Health (NYSE:CVS) Azioni

CVS Health

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.

News

Dividends

Price Target

Pre-Market Outlook

Markets

Analyst Ratings

Trading Ideas

PDCO

Scopri le 3 azioni sanitarie con dividendi superiori al 3% consigliate dai migliori analisti di Wall Street.

Dividendi oltre il 3%? Le azioni scelte dai migliori analisti

Scopri i migliori titoli a dividendo del settore sanitario: analisi delle opportunità di investimento in Pfizer, GSK e CVS.

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Earnings

RIVN

Scopri i 5 titoli da seguire oggi, 7 agosto 2024, con un focus particolare su McKesson, Wix, Disney, Rivian e CVS.

Pre-market: 5 titoli da monitorare oggi, 7 agosto 2024

CVS Health Corp

Morgan Stanley ETF Trust Calvert Ultra-Short Investment Grade ETF

CARDIOVASCULAR SCI INC by Cardiovascular Sciences, Inc.

Morgan Stanley ETF Trust Calvert US Select Equity ETF

CVS Group PLC

CIVITAS SOCIAL HSG PLC by CIVITAS SOCIAL HSG PLC

CV Sciences Inc

COVISTA COMMUNS INC by Covista Communications, Inc,

Covista Communications Inc

CONVERGENCE SYS INC CL A by Convergence Systems Inc.

Convergence Systems Inc

CVS HEALTH ORD

WIIM

CVS Health shares are trading higher after TD Cowen upgraded the stock from Hold to Buy and raised its price target from $59 to $85.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>HSBC analyst Saul Martinez upgraded Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) from Hold to Buy and announced a price target of $118. Morgan Stanley shares gained 0.1% to close at $104.57 on Thursday. <a href="https://www.benzinga.com/quote/MS/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Wolfe Research analyst Bill Carcache upgraded the rating for M&amp;T Bank Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>) from Peer Perform to Outperform and announced a $210 price target. M&amp;T Bank shares fell 0.5% to close at $172.34 on Thursday. <a href="https://www.benzinga.com/quote/MTB/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>TD Cowen analyst Charles Ryhee upgraded CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) from Hold to Buy and boosted the price target from $59 to $85. CVS Health shares rose 1.1% to close at $62.92 on Thursday. <a href="https://www.benzinga.com/quote/CVS/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Morgan Stanley analyst Robert Kad upgraded The Williams Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMB#NYSE">WMB</a>) from Equal-Weight to Overweight and raised the price target from $52 to $58. Williams shares gained 1.2% to close at $48.21 on Thursday. <a href="https://www.benzinga.com/quote/WMB/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>BMO Capital analyst Phillip Jungwirth upgraded the rating for Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) from Market Perform to Outperform and raised the price target from $205 to $215. Diamondback Energy shares gained 3.9% to close at $188.30 on Thursday. <a href="https://www.benzinga.com/quote/FANG/analyst-ratings">See how other analysts view this stock</a>. </li>
</ul>
Considering buying MS stock? Here&#8217;s what analysts think.
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="517" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04085737/image-2-10-1024x517.png" alt="" class="wp-image-580686" style="width:572px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04085737/image-2-10-1024x517.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04085737/image-2-10-300x151.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04085737/image-2-10-768x388.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/04085737/image-2-10.png 1337w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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</ul>

Upgrades

FANG

This Morgan Stanley Analyst Turns Bullish; Here Are Top 5 Upgrades For Friday

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>HSBC raised the price target for GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) from $240 to $255. HSBC analyst Sean McLoughlin downgraded the stock from Buy to Hold. GE Vernova shares gained 1% to close at $254.68 on Thursday. <a href="https://www.benzinga.com/quote/GEV/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Macquarie raised the price target for Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) from $25 to $33. Macquarie analyst Eugene Hsiao downgraded the stock from Outperform to Neutral. Li Auto shares fell 3.6% to close at $28.82 on Thursday. <a href="https://www.benzinga.com/quote/LI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>HC Wainwright &amp; Co. raised Eton Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETON#NASDAQ">ETON</a>) price target from $9 to $11. HC Wainwright &amp; Co. analyst Swayampakula Ramakanth maintained a Buy rating. Eton Pharmaceuticals shares gained 16.3% to close at $6.91 on Thursday. <a href="https://www.benzinga.com/quote/ETON/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>TD Cowen raised CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) price target from $59 to $85. TD Cowen analyst Charles Ryhee upgraded the stock from Hold to Buy. CVS Health shares gained 1.1% to close at $62.92 on Thursday. <a href="https://www.benzinga.com/quote/CVS/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Keybanc raised Agree Realty Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADC#NYSE">ADC</a>) price target from $68 to $80. Keybanc analyst Upal Rana maintained an Overweight rating. Agree Realty shares fell 0.1% to close at $75.19 on Thursday. <a href="https://www.benzinga.com/quote/ADC/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>B of A Securities raised the price target for Domino&#8217;s Pizza, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) from $577 to $582. B of A Securities analyst Sara Senatore maintained a Buy rating. Domino&#8217;s fell 0.6% to close at $420.89 on Thursday. <a href="https://www.benzinga.com/quote/DPZ/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Deutsche Bank cut Six Flags Entertainment Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUN#NYSE">FUN</a>) price target from $65 to $58. Deutsche Bank analyst Chris Woronka maintained a Buy rating. Six Flags Entertainment shares fell 3.1% to close at $37.20 on Thursday. <a href="https://www.benzinga.com/quote/FUN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Morgan Stanley raised the price target for RPM International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RPM#NYSE">RPM</a>) from $107 to $125. Morgan Stanley analyst Vincent Sinisi maintained an Equal-Weight rating. RPM shares fell 0.3% to close at $127.30 on Thursday. <a href="https://www.benzinga.com/quote/RPM/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Stifel raised Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) price target from $27 to $29. Stifel analyst Steven Wieczynski maintained a Buy rating. Norwegian Cruise Line shares fell 2.1% to close at $19.44 on Thursday. <a href="https://www.benzinga.com/quote/NCLH/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities boosted AECOM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACM#NYSE">ACM</a>) price target from $108 to $119. Truist Securities analyst Jamie Cook maintained a Buy rating. AECOM shares gained 0.6% to close at $102.57 on Thursday. <a href="https://www.benzinga.com/quote/ACM/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Considering buying DPZ stock? Here&#8217;s what analysts think: 
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</ul>

ETON

NCLH

Domino's Pizza To Rally Over 38%? Here Are 10 Top Analyst Forecasts For Friday

TD Cowen analyst Charles Ryhee upgrades CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) from Hold to Buy and raises the price target from $59 to $85.

TD Cowen Upgrades CVS Health to Buy, Raises Price Target to $85

Texas Attorney General Ken Paxton has filed a lawsuit against several major insulin manufacturers and pharmacy benefit managers (PBMs), alleging a conspiracy to <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40560002/governments-suing-pharmacy-benefit-managers-over-insulin-prices-have-long-benefited-from-their-r" rel="noreferrer noopener">inflate insulin prices</a>.
The <a target="_blank" href="https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-big-pharma-drug-manufacturers-and-pharmacy-benefit-managers" rel="noreferrer noopener">lawsuit</a> targets pharmaceutical companies such as Eli Lilly And Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) and PBMs, including Cigna Corp's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) Express Scripts and CVS Health Inc's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) CVS Pharmacy, accusing them of engaging in an unlawful scheme to raise insulin prices.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">US Federal Trade Commission Sues CVS Health, Cigna, UnitedHealth's Pharmacy Benefit Managers For Inflating Insulin Prices</a>.
According to the lawsuit, insulin manufacturers artificially raised the prices of their drugs while paying PBMs a significant, undisclosed portion in return for preferred placement in PBM offerings.
The PBMs allegedly rewarded the manufacturers with the highest list prices by giving their products preferred status while excluding more affordable alternatives.
These insulin drugs, which cost manufacturers less than $2 to produce, were introduced in the late 1990s at $20 per vial. However, prices have now soared to between $300 and $700 per vial.
Over the past decade, some manufacturers have raised insulin prices by as much as 1,000%.
Paxton expressed outrage over the alleged scheme, stating, "This is a disturbing conspiracy by which pharmaceutical companies were intentionally and artificially inflating the price of insulin. Big Pharma insulin manufacturers and PBMs worked together to take advantage of diabetes patients and drive prices as high as they could." He vowed to hold these companies accountable for their actions.
The complaint further claims that while PBMs have publicly positioned themselves as entities working to reduce drug prices and improve treatment access, their actions tell a different story.
The lawsuit argues that the PBMs have colluded with insulin manufacturers to manipulate the market for their financial gain, all at the expense of Texas diabetics and healthcare payors.
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Photo by towfiqu barbhuiya via unsplash

Government

Large Cap

Health Care

Legal

General

Texas Attorney General Sues Insulin Manufacturers and Pharmacy Benefit Managers Over Price-Fixing Conspiracy That Increased Prices by 1,000%

<a href="https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-big-pharma-drug-manufacturers-and-pharmacy-benefit-managers">https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-big-pharma-drug-manufacturers-and-pharmacy-benefit-managers</a>
Texas Attorney General Ken Paxton sued major insulin manufacturers and pharmacy benefit managers (&quot;PBMs&quot;)&mdash;including Eli Lilly, Express Scripts, CVS Pharmacy, and others&mdash;over a conspiracy to increase prices of insulin.&nbsp;
Through this conspiracy, the manufacturers artificially and willingly raised the prices of insulin then paid a significant, undisclosed portion back to the PBMs as a quid pro quo for inclusion in the PBMs&#39; standard offerings. The PBMs then granted preferred status to the manufacturer whose drug has the highest list price while excluding lower priced drugs. These synthetic insulin drugs, which today cost the manufacturers less than $2 to produce and were originally priced at $20 when released in the late 1990s, now range between $300 and $700. In the last decade alone, the manufacturers who are defendants in the lawsuit have increased the prices of their insulins up to 1,000%. Attorney General Paxton is suing because the insulin pricing scheme violates the Texas Deceptive Trade Practices Act, constitutes unjust enrichment, and represents an unlawful civil conspiracy.
&quot;This is a disturbing conspiracy by which pharmaceutical companies were intentionally and artificially inflating the price of insulin. Big Pharma insulin manufacturers and PBMs worked together to take advantage of diabetes patients and drive prices as high as they could,&quot; said Attorney General Paxton. &quot;These companies acted illegally and unethically to enrich themselves, and we will hold them accountable.&quot;
According to the complaint, &quot;While the PBM Defendants represent that they perform their services on behalf of their clients (including Texas payors) and diabetics to lower drug prices, increase access to affordable drugs, and promote diabetic health, these representations are false. Rather, the PBM Defendants have worked in coordination with the Manufacturer Defendants to distort the market for diabetic treatments to their benefit at the expense of Texas diabetics and payors.&quot;
Liston &amp; Deas, David Nutt &amp; Associates, the Cicala Law Firm, and Foreman Watkins Krutz are serving as outside counsel.

Texas Attor­ney Gen­er­al Ken Pax­ton Sues Big Phar­ma Drug Man­u­fac­tur­ers And Phar­ma­cy Ben­e­fit Man­agers For Con­spir­a­cy

Financial giants have made a conspicuous bearish move on CVS Health. Our analysis of options history for CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) revealed 17 unusual trades.
Delving into the details, we found 41% of traders were bullish, while 47% showed bearish tendencies. Out of all the trades we spotted, 4 were puts, with a value of $440,613, and 13 were calls, valued at $786,829.
<h3>What's The Price Target?</h3>
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $50.0 to $75.0 for CVS Health over the last 3 months. 
<h3>Volume &amp; Open Interest Development</h3>
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for CVS Health's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of CVS Health's whale trades within a strike price range from $50.0 to $75.0 in the last 30 days. 
<h3>CVS Health Option Activity Analysis: Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727884937_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>CVS</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$1.23</td>
<td>$1.12</td>
<td>$1.14</td>
<td>$62.00</td>
<td>$284.9K</td>
<td>607</td>
<td>2.5K</td>
</tr>
<tr>
<td>CVS</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>01/16/26</td>
<td>$10.4</td>
<td>$10.1</td>
<td>$10.2</td>
<td>$60.00</td>
<td>$180.5K</td>
<td>987</td>
<td>178</td>
</tr>
<tr>
<td>CVS</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$2.85</td>
<td>$2.37</td>
<td>$2.4</td>
<td>$65.00</td>
<td>$168.0K</td>
<td>7.3K</td>
<td>57</td>
</tr>
<tr>
<td>CVS</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$5.1</td>
<td>$5.0</td>
<td>$5.1</td>
<td>$55.00</td>
<td>$91.3K</td>
<td>3.7K</td>
<td>179</td>
</tr>
<tr>
<td>CVS</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$10.6</td>
<td>$10.5</td>
<td>$10.5</td>
<td>$55.00</td>
<td>$75.6K</td>
<td>474</td>
<td>73</td>
</tr>
</tbody>
</table>

<h3>About CVS Health</h3>
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.
<h3>CVS Health's Current Market Status</h3>
<ul>
<li>Trading volume stands at 10,926,257, with CVS's price up by 2.06%, positioned at $62.8.</li>
<li>RSI indicators show the stock to be may be approaching overbought.</li>
<li>Earnings announcement expected in 35 days.</li>
</ul>
<h3>What The Experts Say On CVS Health</h3>
4 market experts have recently issued ratings for this stock, with a consensus target price of $63.5.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22bz20&amp;utm_source=benzinga-insights">Click here for access</a>. 
&#x2A; An analyst from RBC Capital downgraded its action to Outperform with a price target of $68. 
&#x2A; In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Neutral, setting a price target of $62. 
&#x2A; Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Neutral with a new price target of $62. 
&#x2A; An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $62. 
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for CVS Health with <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> for real-time alerts.

Options

Unpacking the Latest Options Trading Trends in CVS Health

Glenview and CVS Leadership are engaged in good faith and constructive conversations through which Glenview is offering suggestions to enhance the governance, culture, efficiency, sustainability and growth of CVS Health.&nbsp;

Glenview Capital Says Press Reports That It Is Pushing For Break-Up Of CVS Health Are False

CVS Health Says It Will Reduce Its Workforce By Less Than 1%, Or About 2,900 Workers, As Part Of Previously Announced Cost-Savings Initiative

<a href="https://www.reuters.com/legal/government/cvs-explores-options-including-potential-break-up-sources-say-2024-10-01/">https://www.reuters.com/legal/government/cvs-explores-options-including-potential-break-up-sources-say-2024-10-01/</a>
&nbsp;
CVS Health <a href="https://www.reuters.com/markets/companies/CVS.N">(CVS.N), opens new tab</a> is exploring options that could include a break-up of the company to separate its retail and insurance units, as the struggling healthcare services company looks to turn around its fortunes amid pressure from investors, people familiar with the matter told Reuters.
CVS has been discussing various options - including how such a split would work - with its financial advisers in recent weeks, the sources said, requesting anonymity as the discussions are confidential.
The plan to potentially split the company's pharmacy chain and the insurance business has been discussed with the board of directors, which is yet to decide on the best course of action for CVS to pursue, the sources said, cautioning that the plans have not been finalized and CVS may opt for a different strategy.
CVS is also discussing whether its pharmacy benefits manager unit, which manages drug benefits for health plans, should be housed within the retail unit or under insurance, if it were to proceed with a separation that could result in two publicly traded companies, the sources said.
Such a move would effectively unwind CVS's landmark $70 billion takeover of healthcare insurer Aetna in 2017 and come as CVS attempts to navigate one of the most challenging periods in its six-decade history.
A CVS spokesperson declined to comment on whether it is holding talks to explore options.
"CVS's management team and Board of Directors are continually exploring ways to create shareholder value," the spokesperson said. "We remain focused on driving performance and delivering high quality healthcare products and services enabled by our unmatched scale and integrated model."
&nbsp;
The latest discussions come as CVS faces increasing pressure from investors such as Glenview Capital, which is said to be <a href="https://www.reuters.com/business/healthcare-pharmaceuticals/glenview-plans-activist-stance-push-changes-cvs-wsj-reports-2024-09-29/">pushing for changes</a> at the company to help improve its operations, after it cut its 2024 earnings outlook for a third consecutive quarter in August.
CVS, which has a market value of about $79 billion and held long-term debt of roughly $58 billion at the end of December, in August lowered its annual profit forecast to $6.40 to $6.65 per share, from its previous forecast of least $7.00 per share.
"While we view management's...adjusted EPS growth target for 2025 as attainable, we believe uncertainty around performance in 2024, as well as the outcome of CVS's 2025 Medicare Advantage bids, creates an unclear outlook for 2025 and beyond," TD Cowen analysts wrote in an Aug. 11 note.
<h2>RISING COSTS, LAGGING SHARE PRICE</h2>
CVS <a href="https://www.reuters.com/business/healthcare-pharmaceuticals/cvs-health-cuts-2024-profit-forecast-elevated-medical-costs-2024-08-07/">recently announced</a> the exit of Aetna head Brian Kane, after its Medicare business, which is for Americans aged 65 and older, underperformed due to rising medical services costs, and initiated a $1 billion cost-cutting plan. Aetna currently generates roughly a third of CVS's overall revenue.
To be sure, CVS is not the only health insurer facing higher medical costs. UnitedHealth Group <a href="https://www.reuters.com/markets/companies/UNH.N">(UNH.N), opens new tab</a> flagged increasing costs earlier this year, and Humana <a href="https://www.reuters.com/markets/companies/HUM.N">(HUM.N), opens new tab</a> in its most recent quarterly earnings suggested that costs would remain elevated for the year.
CVS is led by healthcare industry veteran Karen Lynch, who previously headed the Aetna unit and is temporarily overseeing the business with Chief Financial Officer Tom Cowhey.
The company's shares have shed nearly a quarter of their value so far this year, underperforming the S&amp;P 500 <a href="https://www.reuters.com/markets/quote/.SPX">(.SPX), opens new tab</a>, which has risen nearly 21% during the same period. It is currently trading at a discount to most of its top peers, according to an analysis of LSEG data.
CVS trades at a multiple of seven times earnings before interest, taxes, depreciation and amortization, compared with nearly 14 times for UnitedHealth and roughly nine times for Cigna <a href="https://www.reuters.com/markets/companies/CI.N">(CI.N), opens new tab</a>.
"While we realize the medical insurance and PBM operations are facing problems currently, we agree with management, as highlighted last year at its investor day, that the long-term weak link at CVS will likely be its namesake retail pharmacy stores," said Julie Utterback, an analyst at Morningstar. "So unless there is a fix, such as expanding healthcare services in those stores substantially in the near future, a strategic change there may be necessary."
Founded in 1963, CVS has its roots in retail pharmacy, and operates over 9,000 stores primarily in the U.S. CVS has grown its various businesses through several notable acquisitions, including pharmacy benefits manager Caremark, Medicare home health company Signify Health, and Oak Street Health, a primary care provider for Medicare patients.
&nbsp;

Reported Earlier, 'CVS Explores Options Including Potential Break-Up, Sources Say' - Reuters News

Providing a diverse range of perspectives from bullish to bearish, 11 analysts have published ratings on CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) in the last three months.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">9</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $62.27, a high estimate of $68.00, and a low estimate of $58.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 0.14%. 
<img src="https://www.benzinga.com/files/images/story/2024/1727794911_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The standing of CVS Health among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Ben Hendrix</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$68.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$61.00</td>
<td>$60.00</td>
</tr>
<tr>
<td>George Hill</td>
<td>Deutsche Bank</td>
<td>Lowers</td>
<td>Hold</td>
<td>$63.00</td>
<td>$64.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$63.00</td>
<td>$65.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Raises</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$58.00</td>
</tr>
<tr>
<td>Elizabeth Anderson</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$62.00</td>
<td>$65.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$58.00</td>
<td>$58.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to CVS Health. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of CVS Health compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of CVS Health's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of CVS Health's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/CVS/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on CVS Health analyst ratings.</a>
<h2>Discovering CVS Health: A Closer Look</h2>
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.
<h3>Key Indicators: CVS Health's Financial Health</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, CVS Health showcased positive performance, achieving a revenue growth rate of 2.6% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Net Margin: CVS Health's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.94% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): CVS Health's ROE stands out, surpassing industry averages. With an impressive ROE of 2.38%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.7%, the company showcases effective utilization of assets.
Debt Management: CVS Health's debt-to-equity ratio is below the industry average at 1.12, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

What Analysts Are Saying About CVS Health Stock

Cantor Fitzgerald analyst Sarah James reiterates CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) with a Neutral and maintains $62 price target.

Reiteration

Cantor Fitzgerald Reiterates Neutral on CVS Health, Maintains $62 Price Target

CVS Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) is reportedly considering a major restructuring that could involve separating its <a target="_blank" href="https://www.benzinga.com/quote/CVS" rel="noreferrer noopener">retail and insurance businesses</a>.
The move comes as the healthcare services company faces investor pressure and seeks to recover from a challenging financial period.
CVS Health is trading at an EBITDA multiple of 7x, which is significantly lower than key competitors like UnitedHealth Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) and Cigna Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>), which trade at multiples of 14x and 9x, respectively.
This valuation gap underscores CVS's pressure to find a viable path forward amid growing competition and investor concerns.
These talks with financial advisers explore how a potential breakup would work, although no final decisions have been made yet.
Reuters report says the discussions, which remain confidential, include the possibility of unwinding CVS Health's $70 billion acquisition of Aetna in 2017, a deal that significantly expanded the company's insurance capabilities.
Now facing mounting difficulties in its retail and insurance sectors, CVS Health is assessing various strategies, including the potential split of its business units.
If the separation occurs, CVS Health could create two publicly traded companies, but the decision is pending approval from its board of directors.
Another point of debate is whether CVS Health's pharmacy benefits manager (PBM) should remain part of the retail division or be integrated into the insurance segment.
The final structure of any split will depend on internal deliberations, Although the Reuters report adds that CVS Health could still pursue a different approach.
As per a recent WSJ report, CVS Health is set to face renewed pressure as hedge fund&nbsp;Glenview Capital Management, led by founder&nbsp;Larry Robbins, plans to meet top executives, including CEO&nbsp;Karen Lynch, to <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/41091446/cvs-health-in-focus-as-activist-investor-prepares-for-high-level-talks" rel="noreferrer noopener">discuss operational improvements</a>.
The meeting with Glenview comes as part of Robbins' broader strategy to push for change.
In the second quarter, the pharmacy chain reported adjusted EPS of&nbsp;$1.83&nbsp;decreased from&nbsp;$2.21&nbsp;in the prior year, beating the consensus of $1.73.
The fall is primarily due to a decline in the Health Care Benefits segment's operating results, which reflect continued utilization pressure and the unfavorable impact of the company's Medicare Advantage star ratings for the 2024 payment year within&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">the Medicare product line</a>.
CVS Health revised its adjusted EPS guidance to $6.40-$6.65&nbsp;from at least&nbsp;$7.00 versus the consensus of $6.98, reflecting continued pressure in the Health Care Benefits segment.
CVS Health decided to make leadership changes based on the current performance and outlook for the Health Care Benefits segment.&nbsp;
Brian Kane&nbsp;quit, and Karen Lynch,&nbsp;the CEO, assumed direct leadership of the Health Care Benefits segment.
Karen and Tom Cowhey, CVS Health's CFO, oversee the business's day-to-day management.
Price Action: At last check Tuesday, CVS stock was up 2.21% at $64.27 during the premarket session.
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Rumors

Media

CVS Health Mulls Split Of Retail And Insurance Divisions To Address Financial Challenges: Report

U.S. markets closed Monday slightly higher, with the Dow Jones Industrial Average edging up 0.04% to 42,330.15, while the S&amp;P 500 gained a similar 0.04% to reach 5,762.48. The Nasdaq also rose by nearly 0.04%, closing at 18,189.17.
These are the top stocks that gained the attention of retail traders and investors throughout the day:
Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) shares ended Monday higher by 2.29% to end the day at $233. The company is <a href="https://www.benzinga.com/markets/equities/24/09/41097541/amazon-apple-tesla-brace-for-supply-chain-disruptions-as-potential-east-coast-dockworkers-strike">preparing for potential disruptions</a> due to a looming dockworkers&#8217; strike on the East and Gulf Coasts. The strike could halt half of the goods entering and leaving the U.S., impacting the tech giant significantly. 
NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) shares surged by 2.45% to close at $6.68. The company <a href="https://www.benzinga.com/news/24/09/41086919/why-nio-shares-are-trading-higher-by-around-13-here-are-20-stocks-moving-premarket">announced a significant investment</a> in its subsidiary, Nio China, causing the stock to jump 12.7% in pre-market trading. Nio announced that strategic investors committed to a 3.3 billion yuan cash investment in its subsidiary Nio China, while the company agreed to invest 10 billion yuan to subscribe to newly issued shares of the subsidiary.
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CVS Health Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) is set to face renewed pressure as hedge fund Glenview Capital Management <a href="https://www.benzinga.com/news/large-cap/24/09/41091446/cvs-health-in-focus-as-activist-investor-prepares-for-high-level-talks">plans to meet top executives</a> to discuss operational improvements. CVS shares rose by 2.44% to close at $62.88. 
Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) shares plunged by 12.52% to close at $14.05 after the company <a href="https://www.benzinga.com/markets/equities/24/09/41089577/whats-going-on-with-stellantis-stock-monday">revised its fiscal 2024 guidance</a> due to North American performance issues and a deterioration in global industry dynamics. 
Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares rose by 0.45% to close at $261.63. The company is expected to release its <a href="https://www.benzinga.com/news/24/09/41099499/tesla-could-report-slight-q3-deliveries-miss-amid-musks-political-controversies-munster-explains-why">third-quarter deliveries</a> report soon, and despite a potential slight miss, the stock is not expected to be significantly impacted. 
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Equities

AAPL

STLA

TSLA

Apple, Nio, CVS Health, Stellantis, Tesla: Why These 5 Stocks Are On Investors' Radars Today

&#8220;Sell at former peaks&#8221; is an old Wall Street expression. People say this because stocks tend to run into resistance when they rally to a price level that has been a peak. This is due to investor and trader psychology.
After a large and rapid move higher, shares of CVS Health Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) have stalled around the $63.30 level. 
As you can see on the chart, this was where the stock peaked in July. This is despite the fact that many analysts commented on the benefits of insurers evolving into<a href="https://www.benzinga.com/news/earnings/24/09/41054688/heres-why-surgery-partners-could-be-the-next-hot-takeover"> integrated healthcare companies.</a> This is why it is our Stock of the Day.
Rallies can stall at former peaks because there are people who regret buying at the peak when the price dropped afterward. Many of them experience buyer remorse and decide to sell their positions. But they don't want to lose money.
As a result, when the stock eventually reverses and returns to the buy price, they place sell orders. If there are enough of these orders it creates resistance at the level of the former peak, like it has here.
The chart also illustrates another important principle of trading. Stocks tend to find support when they sell off and drop to price levels that had been bottoms.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="629" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/30162702/1-29-1024x629.png" alt="" class="wp-image-573275" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/30162702/1-29-1024x629.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/30162702/1-29-300x184.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/30162702/1-29-768x472.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/30162702/1-29.png 1183w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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This happens due to sellers' remorse. There are traders and investors who sell when a stock is at support. Some of them regret doing so when it rallies soon after.
Some of these remorseful sellers decide to buy their shares back. But they will only do so if they can buy them at the same price they were sold at.
So, if the shares eventually reverse and get back to the support level they place buy orders. If there are enough of these buy orders it will create support at the price level that had been support before.
Successful traders understand investment psychology. They know that buyers' remorse can cause stocks to stall at price levels that had been resistance. They also know that seller's remorse can cause stocks to find bottoms at price levels that had been support.
This knowledge can give traders valuable insights into where to place their sell and buy orders.
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Technicals

Stock Of The Day: Is It Time To Sell CVS?

CVS Health Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) is set to face renewed pressure as hedge fund Glenview Capital Management, led by founder Larry Robbins, plans to meet top executives, including CEO Karen Lynch, to discuss operational improvements.
The meeting with Glenview comes as part of Robbins&#8217; broader strategy to push for change, the Wall Street Journal reports.
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Robbins, who has built a substantial $700 million position in CVS, sees potential for the company to revitalize its struggling business without resorting to a breakup.
Robbins is expected to propose cost-cutting and restructuring strategies but will not push for a breakup of CVS. Another hedge fund has also built a notable position in the company, hinting at further pressure from investors.
CVS, one of the largest healthcare companies in the U.S., has seen its stock tumble 24% year-to-date amid multiple earnings downgrades.
In the second quarter, the pharmacy chain reported adjusted EPS of&nbsp;$1.83&nbsp;decreased from&nbsp;$2.21&nbsp;in the prior year, beating the consensus of $1.73. The fall is primarily due to a decline in the Health Care Benefits segment&#8217;s operating results, which reflect continued utilization pressure and the unfavorable impact of the company&#8217;s Medicare Advantage star ratings for the 2024 payment year within <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">the Medicare product line</a>.
CVS Health revised its adjusted EPS guidance to $6.40-$6.65&nbsp;from at least&nbsp;$7.00 versus the consensus of $6.98, reflecting continued pressure in the Health Care Benefits segment.
The Wall Street report <a target="_blank" href="https://www.wsj.com/health/healthcare/glenview-capital-plans-push-for-changes-at-cvs-5df8aa8a?mod=latest_headlines" rel="noreferrer noopener">adds</a> that CVS had heavily invested in attracting seniors to its Aetna Medicare plans, but the move backfired, squeezing margins. The company is now revising its Medicare approach for 2025 to address these issues.
CVS Health decided to make leadership changes based on the current performance and outlook for the Health Care Benefits segment.&nbsp;
Brian Kane&nbsp;quit, and Karen Lynch,&nbsp;the CEO, assumed direct leadership of the Health Care Benefits segment.
Karen and Tom Cowhey, CVS Health&#8217;s CFO, oversee the business&#8217;s day-to-day management.
Recently, the Federal Trade Commission (FTC) filed a formal complaint against three major pharmacy benefit managers (PBMs)—CVS Health&#8217;s Caremark,&nbsp;Cigna Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) Express Scripts, and&nbsp;UnitedHealth Group Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) Optum—for allegedly engaging in unfair and anti-competitive practices that have inflated the list&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">price of insulin medications</a>.
The FTC has also highlighted significant concerns regarding consolidating pharmacies and health insurance companies, focusing on the influence of a few dominant PBMs <a target="_blank" href="https://www.benzinga.com/government/24/07/39695378/ftc-investigation-uncovers-anti-competitive-practices-by-handful-of-pharmacy-benefit-managers-includ" rel="noreferrer noopener">on prescription drug prices</a>.
Price Action: CVS stock is up 3.27% at $63.39 during the premarket session at last check on Monday.
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Movers

CVS Health in Focus as Activist Investor Prepares for High-Level Talks

CVS shares are trading higher following reports suggesting that hedge-fund investor, Glenview Capital Management, is meeting company executives to push for ways to improve operations.

<a href="https://www.wsj.com/health/healthcare/glenview-capital-plans-push-for-changes-at-cvs-5df8aa8a?mod=hp_lead_pos4" title="https://www.wsj.com/health/healthcare/glenview-capital-plans-push-for-changes-at-cvs-5df8aa8a?mod=hp_lead_pos4">https://www.wsj.com/health/healthcare/glenview-capital-plans-push-for-changes-at-cvs-5df8aa8a?mod=hp_lead_pos4</a>

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The Wall Street Journal Reported Earlier, Investor Glenview Capital Plans Push For Changes At CVS Health; Meeting With Top CVS Executives On Monday To Propose Operational Improvements

With the stock markets trading near highs again and the start of a lower interest rates cycle, the backdrop for mergers, spin-offs, and acquisitions continues to improve. Elevated stock prices are just as good as currency when trying to acquire another company. The Sept. 24, 2024, announcement that Smartsheet Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/smar#NYSE">SMAR</a>) will be acquired by Blackstone and Vista Equity Partners for $56.50 per share or $8.4 billion is a prime example of the improving backdrop.
Prior to the news, plenty of speculation and rumors were swirling around about the work collaboration software provider. Investors looking for another potential and logical buyout candidate in the healthcare sector can take a close look at Surgery Partners Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sgry#NASDAQ">SGRY</a>).
<h2>The Acute Care Boom Is Real, and Health Insurers Are Scrambling</h2>
The acute care boom has been a growth driver for Surgery Partners, which owns and operates surgical hospitals, centers and ambulatory facilities, providing high-quality care at lower prices than general hospitals. The acute care surge that started in the fall of 2023 shocked health insurers like Humana Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hum#NYSE">HUM</a>), causing them to lower their earnings forecasts for the next two years. There was a significant rise in inpatient utilization from their Medicare Advantage members.
Due to the significantly lower prices, patients and insurance carriers prefer non-emergency procedures to be often handled at these specialized facilities rather than acute care hospitals. Their specialized facilities have lower overhead, more efficiency and less complexity.
Procedures performed at surgical centers can cost 50% less than at a traditional hospital. Many of these facilities have already negotiated rates with the major insurers, resulting in lower out-of-pocket expenses for the patients as well. Due to the lower costs, health insurance companies prefer outpatient surgical centers and ambulatory facilities over hospitals.
<h2>Surgery Partners Raises 2024 Revenue Forecast</h2>
Surgery Partners reported their second-quarter 2024 EPS of 21 cents, beating analyst expectations by a penny. Revenues rose 14.2% YoY to $762.1 million, beating consensus estimates of $735.94 million. The key metrics were strong as same-facility revenues grew 10% YoY, and same-facility cases rose 3.9% YoY. The company raised its full-year 2024 revenue forecast to at least $3.075 billion, beating consensus estimates of $3.06 billion.
<h2>Takeover Speculation Makes Sense for Integrated Health Care Transformation</h2>
Insurance carriers love Surgery Partners so much that there is speculation that UnitedHealth Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/unh#NYSE">UNH</a>) may be interested in acquiring them. Private equity firms are also very interested in the nation&#39;s third-largest ambulatory surgical center (ABC) operator. As more insurers evolve into integrated healthcare companies like Kaiser Permanente and as CVS Health Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvs#NYSE">CVS</a>) did with its acquisition of Aetna Health Insurance, interest in Surgery Partners will continue to grow. Bain Capital is Surgery Partners&#39; largest shareholder, with a 39% stake.
<h2>SGRY Is Forming an Ascending Triangle Breakout </h2>
An ascending triangle pattern is comprised of a flat-top horizontal upper trendline resistance converging with an ascending (rising) lower trendline support to meet at the apex point. The breakout occurs when the stock surges through the upper trendline, and a breakdown occurs when the stock falls below the rising trendline.
<img alt="Surgery Partners SGRY stock chart" class="aligncenter" src="https://www.marketbeat.com/logos/articles/med_20240924103837_chartq-sgry.jpg" style="height:785px; width:915px" />
SGRY formed the flat-top upper trendline resistance at $33.95 after it deflected two breakout attempts. This pushed shares to the rising lower trendline and indicated growing demand as buyers raised their bids. The anchored daily VWAP support is at $29.15. SGRY continues to move closer to the apex point, where it can break out through the $33.95 upper trendline or fall below the $31.75 lower trendline.
The daily relative strength index (RSI) is stalled at the 58-band. Fibonacci (Fib) pullback support levels are at $31.08, $29.95, $28.35, and $25.78.
Surgery Partners&#39; average consensus price target is $39.86, and its highest analyst price target is $50.00. &nbsp;
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/heres-why-surgery-partners-could-be-the-next-hot-takeover/">Here&#39;s Why Surgery Partners Could Be the Next Hot Takeover</a>&quot; first appeared on MarketBeat.

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Here's Why Surgery Partners Could Be the Next Hot Takeover

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