LOGO: CVSAfter Friday morning’s announcement that CVS CEO Karen Lynch was being forced out of the top spot and that she was being replaced by David Joyner, CVS had more trouble.
It is now down more than 27% from a 52-week high of 83.25 a share.
The stock closed at 60.34 a share Friday.
CVS is now planning to announce third-quarter results that will fall well below Wall Street expectations, largely due to continued issues at its Aetna insurance unit, and to back away from its most recent full-year earnings projection for 2024, issued in August. A new downgrade would represent the fourth since the company’s investor day in December 2023.
In addition, the current Chairman of the Board, Roger Farah, will now be the Executive Chairman.
“The Board believes this is the right time to make a change, and we are confident that David is the right person to lead our company for the benefit of all stakeholders, including customers, employees, patients, and shareholders,” said Farah. “CVS Health is responsible for improving health for millions of people across the U.S., and our integrated businesses work together to deliver on our purpose and mission every day. To build on our position of strength, we believe David and his deep understanding of our integrated business can help us more directly address the challenges our industry faces, more rapidly advance the operational improvements our company requires, and fully realize the value we can uniquely create.”
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