CVS Panning 2018 Q4 Was…

… 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

Date Director Shares Share Price Investment
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 Kevin Hourican 1,109 $54.19 $60,096
4/1/2019 James D. Clark 5,536 $54.19 $299,995

Disclosure: the author owns CVS shares.

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