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WOONSOCKET, R.I. - CVS Health (NYSE: CVS), a healthcare giant with $370.66 billion in revenue and an $80.5 billion market capitalization, today announced significant changes to its executive team and provided an optimistic outlook for its 2025 financial performance. Brian Newman has been appointed executive vice president and chief financial officer designate, effective April 21, and will take over from the current CFO, Tom Cowhey, on May 12. Amy Compton-Phillips, M.D., will join the company as the new executive vice president and chief medical officer on May 19.
Brian Newman, the incoming CFO, previously served as the CFO of United Parcel Service (UPS) and brings a wealth of experience from a nearly three-decade career at PepsiCo. Newman's leadership at UPS during the COVID-19 pandemic and his tenure in various global finance roles at PepsiCo position him as a strategic addition to the CVS Health leadership team. According to InvestingPro analysis, CVS currently appears undervalued, with multiple analysts recently revising their earnings expectations upward for the upcoming period.
Dr. Amy Compton-Phillips arrives with a distinguished background in healthcare management, most recently as the chief physician executive at Press Ganey. Her prior roles include president and chief clinical officer at Providence Health & Services and various positions at Kaiser Permanente. Her appointment underscores CVS Health's commitment to clinical excellence and patient care.
The company also signaled confidence in its financial trajectory, expecting to meet or exceed its previously issued guidance for the full year of 2025. With a healthy 4.17% dividend yield and strong recent market performance, CVS has demonstrated resilience in the healthcare sector. It is important to note that the financial closing procedures for the first quarter are not yet complete, and final figures may be subject to change.
David Joyner, president and CEO of CVS Health, expressed gratitude to Tom Cowhey for his contributions and welcomed the new executives, emphasizing their potential to propel the company's strategic vision. Newman and Compton-Phillips also shared their enthusiasm for their new roles, highlighting their commitment to the success and health outcomes of CVS Health's clients and customers.
These leadership transitions come as CVS Health continues to expand its healthcare services, which include a vast network of retail pharmacy locations, medical clinics, pharmacy benefits management, and health insurance products. For deeper insights into CVS Health's valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports, which are available for over 1,400 US stocks.
The information for this article is based on a press release statement from CVS Health.
In other recent news, CVS Health has announced a quarterly dividend of $0.665 per share, payable on May 1, 2025, to shareholders of record by April 22, 2025. This decision highlights the company's commitment to delivering value to its investors. Additionally, Mizuho Securities has increased its price target for CVS Health to $70 from $58, maintaining an Outperform rating. The analyst, Ann Hynes, cited the company's "embedded earnings power" as a factor in the revised target, reflecting confidence in CVS Health's financial strength.
In a broader industry context, the Centers for Medicare and Medicaid Services announced a 5.06% increase in Medicare insurer payment rates for 2026, benefiting companies like CVS Health. This rate adjustment is expected to generate over $25 billion in additional revenue for the healthcare insurance sector. Meanwhile, the U.S. Federal Trade Commission (FTC) is set to resume its lawsuit against pharmacy benefit managers, including CVS Health's CVS Caremark, over insulin pricing practices. The case had been paused due to the recusal of FTC Chairman Andrew Ferguson, who has now reversed his decision, allowing proceedings to continue.
Lastly, the FDA has authorized Visby Medical's at-home test for three sexually transmitted diseases, with CVS among companies offering similar at-home testing kits. These developments are shaping the landscape for CVS Health and its industry peers, with implications for future operations and investor considerations.
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