Why Is Oak Street Health (OSH) Stock Up 36% Today?

  • Oak Street Health (OSH) stock is rising on reports of a takeover.
  • These reports claim that CVS (CVS) plans to acquire the company in a $10.5 billion deal.
  • That would value shares of OSH stock at $39 each.
OSH stock. the exterior of a CVS pharmacy store

Source: Jonathan Weiss / Shutterstock.com

Oak Street Health (NYSE:OSH) stock is on the rise Tuesday as investors react to a report that CVS (NYSE:CVS) plans to take over the company.

According to these reports, CVS is willing to pay $10.5 billion to acquire Oak Street Health. The reports claim that CVS is going to pay around $39 per share for OSH stock. That would represent a roughly 50% premium to OSH’s closing price of $25.96 yesterday.

This isn’t the first time that reports of CVS seeking to obtain Oak Street Health have popped up. Earlier this year, similar reports spread with insiders claiming CVS was willing to acquire the company in a $10 billion deal. That would include its debt too.

What This Means for OSH Stock

If CVS acquired Oak Street Health, chances are that OSH stock will cease to trade publicly. However, the reported offer price is a strong premium, meaning that investors would likely accept the deal.

It’s also worth noting that CVS has been expanding its business lately with acquisitions. The company is trying to break into the primary care market, which makes sense considering its role as a retail pharmacy chain.

As for stock movement this morning, about 300,000 shares of OSH stock have changed hands. That’s still a ways off from the daily average trading volume of about 2.4 million shares.

OSH stock is up 35.6% as of Tuesday morning.

Investors can find more of the latest stock market news below!

InvestorPlace is home to all of the hottest stock market coverage for Tuesday! Among that is what’s happening with Vaccinex (NASDAQ:VCNX) stock, the biggest pre-market stock movers this morning and more. You can find all that news at the following links!

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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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/why-is-oak-street-health-osh-stock-up-36-today/.

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