What Happened?
Shares of diversified healthcare company CVS Health (NYSE: CVS) fell 4.8% in the afternoon session after two Republican congressmen launched an investigation into the company over concerns it may have violated the HIPAA privacy law.
The probe, initiated by House Oversight Committee Chair James Comer and Federal Law Enforcement Subcommittee Chair Clay Higgins, focuses on allegations that CVS used confidential patient information in a text message campaign to lobby against a Louisiana bill. The bill in question would have required the company to break up its pharmacy business. This investigation raises concerns about potential legal and regulatory repercussions for the healthcare giant, weighing on investor sentiment.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy CVS Health? Access our full analysis report here, it’s free.
What Is The Market Telling Us
CVS Health’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 16.4% on the news that the company reported fourth-quarter results that exceeded expectations, with same-store sales significantly surpassing analysts' forecasts and EPS outperforming Wall Street's estimates by a wide margin. Growth was powered by strong performance in the Pharmacy & Consumer Wellness segment. On the other hand, its full-year EPS guidance missed. Despite this, we think this was a decent quarter.
CVS Health is up 57.9% since the beginning of the year, and at $69.81 per share, it is trading close to its 52-week high of $74.09 from September 2025. Investors who bought $1,000 worth of CVS Health’s shares 5 years ago would now be looking at an investment worth $1,173.
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