CVS Stock Falls After Karen Lynch Ouster: What to Know
CVS stock is lower Friday after the embattled healthcare company said Karen Lynch is out as CEO, effective immediately.


CVS Health (CVS) stock is spiraling Friday after the pharmacy chain and health benefits provider announced the appointment of a new CEO.
Effective October 17, David Joyner took over as president and CEO of CVS Health, replacing Karen Lynch, who had been in the position since February 2021. Joyner has 37 years of experience in the healthcare and pharmacy benefit management industries, most recently serving as executive vice president of CVS Health and president of CVS Caremark.
"There is no greater honor than to lead a company whose mission and purpose are completely focused on improving health," Joyner said in a statement. "I came back to CVS Health in 2023 because I believed I could give more to the company, and I take this opportunity today for the same reason. I am proud to continue working side by side with our 300,000 colleagues who are building a world of health around every consumer."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The news comes less than three weeks after reports surfaced that CVS was conducting a strategic review of its business and had hired bankers to assist in exploring options, including a possible breakup of its retail and insurance units.
CVS Health's preliminary Q3 results fall short
In the press release, CVS also provided preliminary guidance for its third quarter, calling for earnings per share in the range of $1.05 to $1.10.
The forecast falls well below analysts' expectations for third-quarter earnings of $1.70 per share, according to Yahoo Finance.
"In light of continued elevated medical cost pressures in the Health Care Benefits segment, investors should no longer rely on the Company's previous guidance provided on its second-quarter 2024 earnings call on August 7, 2024," CVS added.
Is CVS stock a buy, sell or hold?
CVS Health has had a rough year on the price charts, as well. Shares have fallen more than 26% since the start of 2024, but Wall Street remains bullish on the healthcare stock.
According to S&P Global Market Intelligence, the average analyst target price for CVS is $70.10, representing implied upside of 20% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Argus Research is one of those with a Buy rating the large-cap stock and a $75 price target.
The shares trade at an attractive valuation and CVS boasts a healthy 4.2% dividend yield which seems sustainable, wrote Argus Research analyst Christopher Graja in an October 2 note. However, the analyst admitted that he's "disappointed with the recent performance of the Health Care Benefits business" and is "not sure that our Buy recommendation can withstand another guidance cut or a deterioration in credit-quality metrics."
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
These Stocks Dipped in 2025. Do They Have Value?
If you are looking to add new long-term positions to your portfolio, as you should, this is the time to examine stocks that the market shuns.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
These Stocks Dipped in 2025. Do They Have Value?
If you are looking to add new long-term positions to your portfolio, as you should, this is the time to examine stocks that the market shuns.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
Stock Market Winners and Losers of the 'Big, Beautiful' Bill
Defense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?
Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.