Oak Street Health (NYSE:OSH) stock is a hot topic among traders on Tuesday following reports that CVS (NYSE:CVS) may intend to acquire the company.
According to recent reports, CVS is willing to pay $10 billion to bring Oak Street Health into its fold. The reports claim the sticker price could rise above that, too, when covering both the acquisition and Oak Street’s current debt.
Although these are only reports without an official statement, the news is still exciting investors in OSH stock. As of this writing, more than 11 million shares have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 1.6 million shares.
Why Does CVS Want OSH?
CVS has recently been looking to expand beyond its business as a retailer and pharmacy company. This has the company stretching into the healthcare market. In that vein, CVS recently purchased Signify Health (NYSE:SGFY).
CVS’s interest in the healthcare space comes as retail sales have slowed. If reports are true and the company acquires Oak Street Health, the move could benefit both companies.
OSH stock is still relatively new to the public market, having made its debut back in 2020. Since then, shares have fallen about 26%. Selling to CVS could help Oak Street turn around its business while wiping out debt. For the record, OSH stock is up 28.4% as of Tuesday afternoon following the acquisition reports.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage traders need for Tuesday! That includes why stocks are down today, as well as what’s happening with Bed Bath & Beyond (NASDAQ:BBBY) and Sidus Space (NASDAQ:SIDU) shares. You can learn more at the links below!
More Tuesday Stock Market News
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
