CVS Health Corp (CVS) Gives Up Triple-Digit Territory After Earnings

CVS Health Corp (NYSE:CVS) is sliding after issuing lackluster guidance

by Josh Selway

Published on Oct 30, 2015 at 11:49 AM

Wall Street is apparently not impressed with CVS Health Corp's (NYSE:CVS) third-quarter numbers and 2016 forecast, because the shares have dipped 4.6% to $98.98. With the losses, CVS now sits just above its year-to-date breakeven mark, and is in danger of closing below its 10-month moving average -- and the round-number $100 level -- for the second straight month. 

151030CVS

Analysts have yet to give in on their bullish positions, though. There are currently 17 brokerage firms with coverage on the stock, 16 of which say it's a "buy" or better. Likewise, CVS' average 12-month price target of $119.68 resides in territory never before charted, and represents a roughly 21% premium to current levels. 

When looking to the options arena, sentiment stacks up much differently. CVS sports a 50-day put/call volume ratio of 1.30 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Data reveals that traders have bought to open puts over calls at a faster rate only 10% of the time in the past year. And this put bias is continuing today, as the contracts are changing hands at 10 times the average intraday clip. 

Outside of earnings, CVS Health Corp (NYSE:CVS) shareholders have other matters to consider, as well. For one, the company's largest competitors just announced a $9.4 billion merger. Also, CVS just terminated its relationship with Philidor (subscription required), one of Valeant Pharmaceuticals Intl Inc's (NYSE:VRX) apparent "phantom pharmacies."  


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