CVS Health Corporation (NYSE:CVS – Get Free Report) has been assigned an average recommendation of “Moderate Buy” from the twenty-three research firms that are presently covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and twenty have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $107.24.
Several equities research analysts recently weighed in on the stock. Barclays increased their price objective on shares of CVS Health from $106.00 to $108.00 and gave the stock an “overweight” rating in a research note on Thursday, August 6th. Bank of America raised their target price on shares of CVS Health from $100.00 to $110.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. BMO Capital Markets set a $112.00 target price on CVS Health in a report on Wednesday, September 9th. UBS Group reiterated a “buy” rating on shares of CVS Health in a research report on Tuesday, September 22nd. Finally, HSBC reiterated a “hold” rating and set a $103.00 price target on shares of CVS Health in a research report on Monday, July 6th.
Get Our Latest Research Report on CVS Health
CVS Health Stock Performance
CVS Health (NYSE:CVS – Get Free Report) last released its earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.71. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The firm had revenue of $106.10 billion during the quarter, compared to analyst estimates of $100.03 billion. During the same quarter in the previous year, the firm earned $1.81 earnings per share. The firm’s revenue for the quarter was up 7.3% compared to the same quarter last year. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Equities research analysts forecast that CVS Health will post 8.02 EPS for the current year.
CVS Health Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 22nd will be paid a dividend of $0.6650 per share. This represents a $2.66 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Thursday, October 22nd. CVS Health’s dividend payout ratio is presently 70.37%.
Institutional Investors Weigh In On CVS Health
A number of hedge funds have recently added to or reduced their stakes in CVS. BlackRock Inc. bought a new position in shares of CVS Health during the 2nd quarter valued at about $12,747,462,000. State Street Corp raised its holdings in shares of CVS Health by 26.3% in the 2nd quarter. State Street Corp now owns 74,927,064 shares of the pharmacy operator’s stock worth $7,751,205,000 after purchasing an additional 15,604,883 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of CVS Health by 49.8% in the 2nd quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator’s stock worth $3,496,725,000 after purchasing an additional 11,233,381 shares in the last quarter. Bank of America Corp DE boosted its holdings in CVS Health by 148.0% during the second quarter. Bank of America Corp DE now owns 23,188,670 shares of the pharmacy operator’s stock worth $2,398,868,000 after buying an additional 13,836,701 shares in the last quarter. Finally, Pzena Investment Management LLC bought a new stake in CVS Health during the second quarter worth approximately $1,217,558,000. 80.66% of the stock is currently owned by institutional investors.
CVS Health News Summary
Here are the key news stories impacting CVS Health this week:
- Positive Sentiment: CVS said more than 69% of Aetna’s Medicare Advantage members are enrolled in plans rated four stars or higher for 2027. The company highlighted solid clinical quality, preventive care and member-experience performance. Aetna 2027 Star Ratings Reflect Strong Clinical Quality and Member Experience
- Positive Sentiment: CVS extended pharmaceutical distribution agreements with Cardinal Health and McKesson through 2032, supporting supply continuity for its retail pharmacies and other dispensing operations. CVS Health Extends Drug Distribution Deals
- Positive Sentiment: Analysts continue to point to potential upside from recovering Aetna margins, improving pharmacy trends, growth in Health Services and CVS’s valuation discount versus peers. The company also opened a compact, pharmacy-focused location in the Boston area, supporting its retail strategy. CVS Trades at a Discount to Industry
- Neutral Sentiment: Options traders reportedly purchased a large volume of CVS call options, signaling speculative bullish interest but not guaranteeing sustained buying in the shares. Traders Buy CVS Call Options
- Negative Sentiment: TD Cowen said Aetna’s 2027 results were weaker than expected, with the portion of Medicare Advantage members in plans rated at least 4.5 stars projected to fall to about 35% from 63%. The decline could reduce quality-related bonus payments and put pressure on Aetna’s earnings and margins. CVS Star Ratings Weaker Than Expected
- Negative Sentiment: The ratings setback has made CVS an underperformer among managed-care stocks, while competitors with stronger Medicare Advantage scores received more favorable investor reactions. Persistent 340B pricing pressure remains an additional risk to the recovery story.
CVS Health Company Profile
CVS Health Corp. is an integrated health care company that provides pharmacy, insurance and health services primarily in the United States. Its operations are designed to connect consumers, health plans, health care providers and pharmacy services across multiple points of care.
The company’s major businesses include CVS Pharmacy retail locations, prescription fulfillment and consumer health products; CVS Caremark, a pharmacy benefit management business; and Aetna, which offers health insurance products and related services for employers, individuals, government programs and other organizations.
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