… a great buying opportunity.
Which is part of why insiders were buying. CVS is up around 5% in premarket trading today. They beat earnings & revenues, raised full year guidance, outperformed in their retail business & outperformed in their health-care benefits segment.
A month ago they were under $52 a share & a week ago they were still just $52.50 a share. So shares currently trading at $57 have seen a big move & the bottom is almost certainly in.
Provided Bernie Sanders is not elected president (socialized medicine that nixes private insurance also guts the value of CVS’s Aetna) the current share price is still cheap. In Q1 CVS insiders invested hundreds of thousands of dollars buying shares at above $58 a share, so if you buy at open you’d be paying a price insiders felt was a good deal.
Here is a list of some of the recent insider buying
|3/11/2019||C. David Brown||10,000||$53.18||$531,800|
|3/11/2019||Fernando G. Aguirre||1,900||$53.59||$101,821|
|3/8/2019||David Wyatt Dorman||9,600||$52.71||$506,016|
|3/8/2019||Edward J. Ludwig||2,000||$52.8||$105,600|
|3/1/2019||Edward J. Ludwig||4,000||$58.27||$233,080|
|3/1/2019||Fernando G. Aguirre||3,410||$58.29||$198,768|
And they also issued a bunch of options at $54.19 a share.
|Date||Director||Shares||Award or Strike Price||Value|
|4/1/2019||Larry J. Merlo||20,858||$54.19||$1,130,295|
|4/1/2019||Thomas M. Moriarty||4,837||$54.19||$262,117|
|4/1/2019||Troyen A. Brennan||3,606||$54.19||$195,409|
|4/1/2019||Lisa G. Bisaccia||2,411||$54.19||$130,652|
|4/1/2019||Eva C. Boratto||1,336||$54.19||$72,397|
|4/1/2019||Alan M. Lotvin||863||$54.19||$46,765|
|4/1/2019||Joshua M. Flum||742||$54.19||$40,208|
|4/1/2019||James D. Clark||253||$54.19||$13,710|
|4/1/2019||James D. Clark||5,536||$54.19||$299,995|
Disclosure: the author owns CVS shares.