CVS Health (NYSE:CVS) Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded CVS Health from “strong-buy” to “buy,” although the broader analyst consensus remains “Moderate Buy,” with 20 Buy ratings, three Holds, and an average price target of $107.80.
• CVS shares opened at $92.41, while the company’s latest quarterly results exceeded expectations: earnings per share came in at $2.58 versus the $1.87 estimate, and revenue rose 7.3% year over year to $106.1 billion.
• Institutional ownership remains substantial, with hedge funds and other institutions holding 80.66% of the stock; major investors including BlackRock, State Street, Wellington Management, and Bank of America increased or initiated positions during the second quarter.

CVS Health (NYSE:CVS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Monday, Wall Street Zen reports.

CVS has been the subject of a number of other reports. Cantor Fitzgerald reiterated a "neutral" rating on shares of CVS Health in a research report on Friday, October 9th. JPMorgan Chase & Co. upped their price target on CVS Health from $111.00 to $118.00 and gave the stock an "overweight" rating in a report on Wednesday, August 12th. Sanford C. Bernstein restated an "outperform" rating and issued a $112.00 price target on shares of CVS Health in a report on Wednesday, September 9th. Truist Financial raised their price objective on CVS Health from $108.00 to $118.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, Wells Fargo & Company lifted their price objective on CVS Health from $103.00 to $123.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Twenty investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $107.80.

CVS Health Trading Up 0.1%

Shares of CVS stock opened at $92.41 on Monday. The business's fifty day moving average price is $91.74 and its 200 day moving average price is $93.19. The firm has a market capitalization of $118.19 billion, a PE ratio of 24.45, a P/E/G ratio of 0.86 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.87 and a quick ratio of 0.66. CVS Health has a 1-year low of $69.51 and a 1-year high of $110.68.

CVS Health (NYSE:CVS - Get Free Report) last released its earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 EPS for the quarter, beating analysts' consensus estimates of $1.87 by $0.71. The company had revenue of $106.10 billion during the quarter, compared to the consensus estimate of $100.03 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%. CVS Health's quarterly revenue was up 7.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.81 earnings per share. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. As a group, sell-side analysts forecast that CVS Health will post 8.02 EPS for the current fiscal year.

Hedge Funds Weigh In On CVS Health

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of CVS Health during the 2nd quarter valued at about $12,747,462,000. State Street Corp lifted its holdings in shares of CVS Health by 26.3% during the 2nd quarter. State Street Corp now owns 74,927,064 shares of the pharmacy operator's stock worth $7,751,205,000 after acquiring an additional 15,604,883 shares during the period. Wellington Management Group LLP boosted its position in shares of CVS Health by 49.8% in the second quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator's stock worth $3,496,725,000 after acquiring an additional 11,233,381 shares during the last quarter. Bank of America Corp DE boosted its position in shares of CVS Health by 148.0% in 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 acquiring an additional 13,836,701 shares during the last quarter. Finally, Pzena Investment Management LLC purchased a new stake in CVS Health in the second quarter valued at approximately $1,217,558,000. 80.66% of the stock is currently owned by hedge funds and other institutional investors.

Key CVS Health News

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: Value and dividend appeal: Zacks identifies CVS as a potentially attractive long-term value stock, while a separate dividend roundup highlights CVS among income-oriented companies. These reports may support investor interest, although they do not represent new company guidance. Why CVS Health Is a Top Value Stock for the Long-Term Dividend roundup
• Positive Sentiment: Care-management and consumer initiatives: CVS Caremark is promoting more connected, personalized pharmacy-benefit experiences. CVS also announced a women’s midlife-health research collaboration and highlighted Signify Health’s at-home heart-rhythm monitoring for eligible members. These efforts could strengthen engagement and differentiate CVS’s health-services platform, but the articles provide no immediate financial targets. CVS Caremark Is Transforming the Health Care Experience CVS Health midlife-health collaboration
• Neutral Sentiment: CVS Caremark appeared in a consumer-focused segment explaining pharmacy benefits as customers evaluate insurance plans. The exposure may improve public understanding of the business but is unlikely to materially affect near-term earnings. CVS Caremark explains pharmacy benefits
• Negative Sentiment: Medicare Advantage exposure: Reports that Medicare Advantage plans, including a CVS plan, will leave New Hampshire raise concerns about membership losses and pressure on the company’s government-business outlook. The specific financial impact was not disclosed. Medical Advantage plans leaving New Hampshire
• Negative Sentiment: Legal overhang: CVS faces a reported $315 million settlement related to allegations involving dangerous opioid prescriptions. Even if the payment is manageable relative to CVS’s size, the matter adds costs and reputational risk. CVS opioid settlement

About CVS Health

CVS Health Corporation NYSE: CVS is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company's Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.

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