CVS Health Corporation (NYSE:CVS) Stock Has Average Target Price of $107.24

Key Points

• Analysts remain broadly bullish: Twenty-two of 23 analysts rate CVS Health a buy, with an average 12-month price target of $107.24 versus its reported share price of $86.94.
• Institutional ownership is substantial: Hedge funds and other institutions own 80.66% of CVS, with major investors including BlackRock, State Street, Bank of America, Pzena Investment Management, and Wellington Management increasing or initiating positions.
• Recent results exceeded expectations: CVS reported quarterly EPS of $2.58 versus the $1.87 consensus estimate and revenue of $106.10 billion, up 7.3% year over year. The company also maintains a quarterly dividend of $0.665, equivalent to a 3.1% annualized yield.

Shares of CVS Health Corporation (NYSE:CVS - Get Free Report) have been given an average rating of "Moderate Buy" by the twenty-three analysts that are covering the stock, MarketBeat reports. One analyst has rated the stock with a hold recommendation and twenty-two have given a buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $107.24.

A number of brokerages have issued reports on CVS. Barclays lifted their price objective on CVS Health from $106.00 to $108.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Argus lifted their price target on CVS Health from $104.00 to $114.00 and gave the stock a "buy" rating in a research report on Wednesday, August 19th. Wall Street Zen downgraded shares of CVS Health from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Piper Sandler set a $112.00 target price on shares of CVS Health in a report on Wednesday, September 9th. Finally, Cantor Fitzgerald reiterated an "overweight" rating on shares of CVS Health in a research note on Thursday.

Institutional Trading of CVS Health

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

CVS Health Price Performance

Shares of CVS opened at $86.94 on Tuesday. CVS Health has a fifty-two week low of $69.51 and a fifty-two week high of $110.68. The firm's 50-day simple moving average is $94.27 and its two-hundred day simple moving average is $92.09. The stock has a market cap of $111.20 billion, a PE ratio of 23.00, a price-to-earnings-growth ratio of 0.84 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87.

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 (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.71. The firm had revenue of $106.10 billion during the quarter, compared to analyst estimates of $100.03 billion. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The business's revenue was up 7.3% on a year-over-year basis. During the same period last year, the business earned $1.81 earnings per share. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Analysts anticipate that CVS Health will post 8.02 earnings per share for the current fiscal year.

CVS Health Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 22nd will be issued a $0.6650 dividend. 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 payout ratio is presently 70.37%.

About CVS Health

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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