• Wed. Apr 17th, 2024

Medicare Advantage Payment Rates Send Health Insurance Stocks on a Downturn; What This Means for CVS Health Corp Shareholders

BySamantha Jones

Apr 3, 2024
Possible Rebound for CVS Health Stock on the Horizon

Due to lower-than-expected Medicare Advantage (MA) payment rates, health insurance stocks experienced a decline yesterday. This news had a significant impact on CVS Health Corp (NYSE:CVS), causing the stock to drop by 7.2% – its largest daily percentage loss since August. Despite a modest recovery today, with shares up 0.7% at $74.37, the recent pullback has brought CVS close to its 200-day moving average, which is typically seen as a bullish trendline.

Those considering buying the dip should take note of Schaeffer’s Senior Quantitative Analyst Rocky White’s observation that CVS has been within one standard deviation of its 200-day moving average before, resulting in an average gain of 3% one month later. Additionally, the stock’s 14-day relative strength index (RSI) of 29.4 suggests that it is oversold and could see a short-term bounce. Prior to yesterday’s drop, CVS had been on an upward trend, with only three daily losses since March 14; however, overall the stock is down 5.7% since the beginning of the year.

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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