Smart Money Move: Leslie V Norwalk Buys $125K in CVS Health Stock
Leslie V Norwalk, a Director at CVS Health, recently made a smart money move by purchasing $125,620 worth of CVS Health stock. This insider purchase was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on November 25, where Norwalk acquired 2,200 shares of CVS Health.
Taking a look at the market, CVS Health’s shares were down by 2.08% at $58.83 during Tuesday morning. CVS Health offers a wide range of healthcare services, operating over 9,000 stores primarily in the US. The company is also a major pharmacy benefit manager processing about 2 billion claims annually and serves around 26 million medical members as a health insurer.
CVS Health’s recent acquisition of Oak Street has added primary care services to its offerings, potentially creating synergies with its existing business lines. In terms of financial performance, CVS Health’s revenue growth has been notable, with a 6.31% increase over a 3-month period as of September 30, 2024.
Looking at profitability metrics, CVS Health has a low gross margin of 13.16%, reflecting potential challenges in maintaining profitability. The company’s EPS is below industry average at 0.07, indicating a decline. However, the debt-to-equity ratio of 1.1 suggests a sound financial structure.
In terms of valuation, CVS Health’s current P/E ratio of 15.25 is below industry norms, potentially signaling undervaluation and an investment opportunity. The stock also presents an attractive valuation based on its lower-than-average P/S ratio of 0.21.
Investors should consider insider transactions as part of a comprehensive analysis when making investment decisions. Insiders, including officers, directors, and significant shareholders, are required to disclose their transactions through Form 4 filings. A company insider’s purchase can indicate positive expectations for the stock, while sells may have various motivations.
Navigating through insider transactions, investors can look for key codes in Form 4 filings to understand the nature of the transaction. A purchase is denoted by a P in Box 3, while a sale is indicated by an S. Codes like C and A represent the conversion of an option and a grant, award, or acquisition of securities from the company, respectively.
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