On May 19, Guy P Sansone, Board Member at CVS Health CVS executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: Sansone’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 2,077 shares of CVS Health. The total transaction value is $125,596.
In the Tuesday’s morning session, CVS Health‘s shares are currently trading at $63.47, experiencing a up of 1.1%.
Discovering CVS Health: A Closer Look
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the US. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 27 million medical members. The company’s recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all existing business lines.
CVS Health’s Economic Impact: An Analysis
Positive Revenue Trend: Examining CVS Health’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.96% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Holistic Profitability Examination:
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Gross Margin: The company shows a low gross margin of 15.22%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.41, CVS Health showcases strong earnings per share.
Debt Management: CVS Health’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.06, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Valuation Overview:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 14.98 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.21, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 9.98 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
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Delving Into the Significance of Insider Transactions
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of CVS Health’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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