NEW YORK (TheStreet) -- Shares of CVS Health Corp (CVS) closed higher by 0.57% to $99.98 in Tuesday's regular trading session, after the company had coverage initiated with "outperform" by analysts at Macquarie this morning.
Analysts at the firm also issued a price target of $115.
CVS director C. David Brown sold 10,000 shares of the stock on June 1 at an average price of $102.57, for a total transaction of $1.025 million, according to a legal filing with the SEC.
Woonsocket, R.I.-based CVS Health is a pharmacy healthcare provider with business segments in pharmacy services, retail pharmacy and corporate, providing pharmacy benefit management services throughout the U.S.
Insight from TheStreet's Research Team:
CVS Health (CVS:NYSE, $101.83, 182 shares, 5.01%) slid 1% since our last summary update. With reports that Humana (HUM:NYSE) may be up for sale, Wall Street has been trying to game the impact from any potential deal on the standalone pharmacy benefits managers: CVS and Express Scripts (ESRX:Nasdaq).
Analysts at J.P. Morgan view outsourcing the PBM function as highly likely and view a Humana takeout by Aetna (AET:NYSE) or Cigna (CI:NYSE) as positive for CVS, and by Anthem (ANTH:NYSE) as positive for ESRX based on prior relationships.
We remain bullish on the shares because the company continues to expand its services and offerings successfully, is well positioned to benefit from a host of changes in the health-care-services market, and continues to be fiscally innovative. We see upside to the stock should the Omnicare (OCR:NYSE) acquisition integrate quicker than expected. Our price target is $115.
Want more information like this from Bryan Ashenberg and Bob Lang BEFORE your stock moves? Learn more about TrifectaStocks.com now.
Separately, TheStreet Ratings team rates CVS HEALTH CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CVS HEALTH CORP (CVS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: CVS Ratings Report