Cvs Health Corp Stock Price, News & Analysis

AM Best has affirmed the A (Excellent) Financial Strength Rating and Long-Term Issuer Credit Ratings for Aetna Inc.'s subsidiaries and related entities, all part of CVS Health Corporation (NYSE: CVS). The ratings reflect Aetna Health & Life Group's very strong balance sheet, strong operating performance, and favorable business profile. The group showed improved performance in Q1 2025 with strongest risk-adjusted capitalization. Notable highlights include steady capital growth over five years, enhanced by CVS Health's capital contributions in 2024. About 90% of members are now in 4+ star Medicare Advantage plans for 2025, though 2024 saw challenges from increased utilization and Medicare Advantage star ratings decline. The group maintains strong market positions in Medicare, Medicaid, and commercial markets across the U.S.

Glenview Capital reports significant progress in CVS Health's (NYSE: CVS) turnaround one year after establishing a major position, with shares generating a 25% total return since May 2024. Key improvements include: board refreshment with four new directors including Glenview's CEO Larry Robbins; leadership transformation under new CEO David Joyner; operational improvements exceeding earnings expectations; enhanced risk management through deleveraging; portfolio optimization; and progress toward potential share repurchases. Glenview has reduced holdings by 3.75 million shares for portfolio diversification but maintains CVS as its largest position. The firm remains confident in CVS's outlook, highlighting the company's role in serving 185 million people.

CVS Health (NYSE: CVS) reported strong Q1 2025 results with total revenues increasing 7.0% to $94.6 billion. The company's GAAP diluted EPS rose to $1.41 from $0.88, while Adjusted EPS grew to $2.25 from $1.31. Key highlights include:

The company generated $4.6 billion in operating cash flow and announced plans to exit the individual exchange business. Performance improved across all segments, with Health Care Benefits showing significant growth due to favorable prior-year development and improved Medicare performance.

CVS updated its 2025 guidance, revising GAAP EPS to $4.23-$4.43 (down from $4.58-$4.83) but raising Adjusted EPS to $6.00-$6.20 (up from $5.75-$6.00). Cash flow guidance was increased to approximately $7.0 billion. Notable developments include Aetna's new solutions for patient care and CVS Caremark's formulary update to improve access to GLP-1 drugs, particularly Wegovy through a partnership with Novo Nordisk.

CVS Health (NYSE: CVS) has announced key leadership changes, with Brian Newman appointed as executive vice president and CFO designate effective April 21, succeeding Tom Cowhey who will transition to a strategic advisor role. Additionally, Dr. Amy Compton-Phillips joins as executive vice president and chief medical officer effective May 19.

Based on year-to-date results through February, CVS expects to meet or exceed its previously issued guidance for full year 2025. Newman brings experience from UPS where he served as CFO, and previously spent 26 years at PepsiCo in various finance leadership roles. Dr. Compton-Phillips joins from Press Ganey and has extensive experience in healthcare operations and improvement programs, including roles at Providence Health & Services and Kaiser Permanente.

CVS Health (NYSE: CVS) has announced it will host its first quarter 2025 earnings conference call on Thursday, May 1st, 2025, at 8:00 a.m. ET. The event will include discussions of Q1 2025 financial results with analysts and investors. An audio webcast will be available simultaneously on the company's Investor Relations website at investors.cvshealth.com, where it will remain accessible for one year.

CVS Health (NYSE: CVS) has announced its board of directors' approval of a quarterly dividend of $0.665 per share on the company's Common Stock. The dividend will be distributed to shareholders of record as of April 22, 2025, with the payment scheduled for May 1, 2025.

CVS Health (NYSE: CVS) has released data from its CVS Weight Management™ program, showing participants achieved over 15% average weight loss. The program, now available to 3.5 million CVS Caremark plan members, combines one-on-one support from registered dietitians with personalized nutrition planning in a virtual setting.

Key findings reveal that CVS Caremark clients adopting the program spent up to 26% less on GLP-1 medications compared to non-adopting clients. The program demonstrated remarkable results: members who previously lost less than 1% body weight on anti-obesity medication achieved an average 11.7% weight loss after enrollment - a 13x increase. Additionally, those with moderate pre-program success reached an average 20% weight loss.

The program maintains a 92% satisfaction rate after six months, and notably, members who discontinued anti-obesity medication while maintaining lifestyle support retained 94% of their weight loss. These results are based on data from 265,000 members during 2023-2024.

CVS Health Foundation has announced a $2 million Health Zones funding to support the Hispanic Health Council's Family Wellness Center and its partners in Hartford, Connecticut. The initiative aims to address healthcare barriers for individuals with chronic health conditions, serving a state where over 2 million residents live with such conditions.

The funding will enable the Hispanic Health Council to hire three new patient navigators and provide comprehensive services including preventative care, nutrition counseling, mental health support, and community health education. Partner organizations include Mental Health Connecticut and the Villages for Families and Children.

Additionally, CVS Health offered free health screenings through its Project Health initiative, which screened over 450 participants resulting in 1,500+ screenings in Hartford last year. The program will be available in Hartford from June 3 to June 28.

Wellvana has acquired CVS Health's Medicare Shared Savings Program (MSSP) business in an all-stock transaction, resulting in CVS Health obtaining a strategic minority stake in Wellvana. The acquisition positions Wellvana as one of the largest value-based care enablement companies, now supporting healthcare providers across 40 states and serving approximately 1 million Medicare patients.

The combined entity has generated hundreds of millions in Medicare program savings over the past decade. The deal enhances Wellvana's capabilities by expanding its ACO presence, broadening its hospital and physician network, and adding expertise from CVS Health's MSSP business. Physicians joining Wellvana's network will gain access to scheduling tools, administrative support, and value-based care education, with potential eligibility for Foundational Care™ services.

CVS Health maintains its commitment to value-based care through Oak Street Health®, MinuteClinic®, and Aetna's provider network contracts. Financial terms of the transaction were not disclosed.