CVS Shares Are Trading Lower Wednesday: What You Need To Know

CVS Health Corporation CVS shares are seeing a sell-off that comes in the wake of the recent Trump-Harris debate, which has created a wave of uncertainty in the healthcare sector. Here’s what you need to know.

What To Know: Prediction markets, such as Polymarket, show strong support for Harris's performance, with many expecting her to see a polling boost. Early polling data seems to back these predictions, with Harris leading Trump by a significant margin, as noted by a CNN poll conducted by SSRS. While political debates may not always have a direct impact on the stock market, healthcare stocks are particularly sensitive to policy shifts.

As of Wednesday, CVS is trading with a volume of 3.36 million shares and an RSI reading suggesting it's currently neutral between overbought and oversold. Analysts have weighed in with varying opinions, setting an average price target of $64. Recent downgrades from firms like Cantor Fitzgerald, which lowered its rating to Neutral with a new target of $62, reflect concerns over the company's near-term prospects.

What Else: Beyond the broader political context, CVS Health has also seen a surge in options trading activity. A detailed analysis of recent trades shows that 50% of traders are bullish on the stock, while 41% remain bearish. This mixed sentiment has been reflected in the price targets for CVS over the past three months, with trades targeting a range between $30 and $65. Noteworthy recent trades include a bearish put option expiring in January 2025 with a strike price of $55, valued at $440,000, and a bullish call option expiring in the same month with a strike price of $50, valued at $53,500.

CVS Price Action: CVS shares were down by 1.9% at $55.86 at the time of publication Wednesday, according to Benzinga Pro.