CVS shares close lower on Friday, company does not intend to relocate Aetna’s headquarters

According to a statement by CVS Health Corp (CVS) on Friday, Aetna Inc’s headquarters will be kept in Connecticut once the $69 billion acquisition of the health insurance company is finalized. Last year Aetna Inc had announced plans to relocate its headquarters to New York during 2018.

CVS shares closed lower for the fourth time in the past seven trading sessions on Friday. The stock edged down 0.30% ($0.24) to $78.78, after touching an intraday high at $79.68, or a price level not seen since October 6th ($80.47).

In the week ended on January 14th the shares of the pharmacy benefits manager added 0.42% to their market value compared to a week ago, which marked a second consecutive period of gains.

The stock has pared its advance to 8.66% so far during the current month, following a 5.35% slump in December. The latter has been the fourth drop out of seven months.

For the entire past year, the shares of the NYSE-listed company fell 8.12% following another 19.29% retreat in 2016.

“We have no plans to relocate Aetna’s operations from Hartford and, in fact, view Hartford as the future location of our center of excellence for the insurance business”, Carolyn Castel, a spokesperson for CVS, said in an emailed statement, cited by Reuters.

CVS inked a deal to acquire Aetna in December, which combined one of the leading pharmacy benefits managers in the United States with one of the oldest health insurers that offers products ranging from employer health care to government plans nationwide.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding CVS Health Corp’s stock price, have a median target of $88.00, with a high estimate of $100.00 and a low estimate of $73.00. The median estimate is an 11.70% surge compared to the closing price of $78.78 on January 12th.

The same media also reported that 19 out of 26 surveyed investment analysts had rated CVS Health Corp’s stock as “Buy”, while 7 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for CVS Health Corp (CVS) are presented as follows:

Central Pivot Point – $78.35
R1 – $80.11
R2 – $81.43
R3 – $83.19
R4 – $84.94

S1 – $77.03
S2 – $75.27
S3 – $73.95
S4 – $72.62