Why Shares of Oak Street Health Soared This Week
Shares of Oak Street Health (NYSE: OSH) were up 32.6% for the week, as of Thursday afternoon, according to data provided by S&P Global Market Intelligence. The company operates 169 medical primary care centers in 21 states for Medicare patients. The stock closed at $26.62 last week and jumped to as high as $35.47 on Wednesday for its 52-week high. It's up more than 89% over the past year.
CVS Health has agreed to pay $10.6 billion to acquire Oak Street. The all-cash transaction translates to $39 a share.
CVS has been focusing more in recent years on beefing up its primary care offerings, and this fits in with its plan. Rivals such as UnitedHealth Group are also scooping up primary care centers as insurers combine to offer more profitable services such as prescription plans and pharmacy services.
Source Fool.com
