Shares of CVS Health Corporation (NYSE:CVS) recorded 0.40% gain during trading session on January 11th, 2019. The script traded as low as $64.36 and last traded at $65.81. 11.4 million shares changed exchanged hands during trading, a drop of -18.58% from the 30-day average session volume of 9.61M shares. The firm had previously closed at $65.55. The company has $1.29B outstanding shares, a price-to-earnings ratio of 42.10, price-to-earnings-growth ratio of 0.45 and a beta of 1.10. The company has a RSI of 36.84, ATR of 2.25 and a volatility of 3.54% this week. CVS has a 52 week low price of $60.14 and a 52 week high price of $83.88.
Investors have identified the tech company CVS Health Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 84.77B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
CVS Health Corporation (CVS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CVS, the company has in raw cash 41.59 billion on their books with 21.16 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 71.98 billion total, with 17 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
CVS were able to record 4.93 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 39.93 billion. In cash movements, the company had a total of 6.39 billion as operating cash flow.
Potential earnings growth for CVS Health Corporation (CVS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, CVS Health Corporation recorded a total of 47.27 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.02% coming in sequential stages and their sales for the third quarter increasing by 0.01%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 39.94 billion trying to sell their products during the last quarter, with the result yielding a gross income of 7.33 billion. This allows shareholders to hold on to 1.29B with the revenue now reading 1360 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.69 cents a share).
Is the stock of CVS attractive?
Having a look at the company’s valuation, the company is expected to record 7.58 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CVS sounds very interesting.
In related news, President and CEO MERLO LARRY J sold 166,368 shares of the company’s stock in a transaction that recorded on January 8th, 2019. The sale was performed at an average price of 69.04, for a total value of 11,486,047. As the sale deal closes, the EVP and CFO MERLO LARRY J now sold 25,159 shares of the company’s stock, valued at 2,015,991. Also, EVP and Chief Medical Officer Brennan Troyen A sold 14,229 shares of the company’s stock in a deal that was recorded on November 14th, 2019. The shares were sold at an average price of 82.00 per share, with a total market value of 70,494. Following this completion of acquisition, the EVP, Cont & Chief Acct Officer now holds 4,426 shares of the company’s stock, valued at 354,080. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
8 out of 24 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on CVS Health Corporation stock. 0 analysts has assigned a Sell rating on the CVS stock. The 12-month mean consensus price target for the company’s shares has been set at $90.74.