CVS Health Corporation (NYSE:CVS) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• CVS Health Corporation has received an average rating of "Moderate Buy" from 24 brokerages, with 19 analysts recommending a buy and two giving a strong buy rating.
• Recent target price adjustments from analysts include increases to $82 from Morgan Stanley and $87 from Barclays, indicating positive sentiment towards CVS health stock.
• The company recently reported a quarterly earnings per share of $1.81, beating estimates, and announced a quarterly dividend of $0.665 per share, reflecting a dividend yield of 3.6%.

Shares of CVS Health Corporation (NYSE:CVS - Get Free Report) have received an average recommendation of "Moderate Buy" from the twenty-four research firms that are currently covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation, nineteen have given a buy recommendation and two have given a strong buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $78.25.

Several research firms have recently commented on CVS. Morgan Stanley boosted their target price on shares of CVS Health from $80.00 to $82.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Barclays increased their target price on shares of CVS Health from $80.00 to $87.00 and gave the company an "overweight" rating in a research report on Thursday, September 4th. Jefferies Financial Group upped their price target on shares of CVS Health from $74.00 to $80.00 and gave the company a "buy" rating in a research note on Monday, June 30th. Wall Street Zen upgraded shares of CVS Health from a "hold" rating to a "buy" rating in a research note on Sunday, September 21st. Finally, Sanford C. Bernstein increased their target price on shares of CVS Health from $72.00 to $77.00 and gave the stock a "market perform" rating in a research note on Friday, September 5th.

Insider Activity at CVS Health

In related news, Director Anne A. Finucane sold 7,500 shares of the stock in a transaction on Wednesday, August 20th. The shares were sold at an average price of $71.02, for a total transaction of $532,650.00. Following the transaction, the director owned 22,156 shares of the company's stock, valued at approximately $1,573,519.12. This trade represents a 25.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.22% of the company's stock.

Institutional Investors Weigh In On CVS Health

Several institutional investors and hedge funds have recently modified their holdings of CVS. FineMark National Bank & Trust lifted its position in CVS Health by 1.7% during the 2nd quarter. FineMark National Bank & Trust now owns 9,576 shares of the pharmacy operator's stock valued at $661,000 after acquiring an additional 157 shares during the period. Smartleaf Asset Management LLC grew its stake in shares of CVS Health by 1.1% in the second quarter. Smartleaf Asset Management LLC now owns 15,059 shares of the pharmacy operator's stock worth $1,031,000 after acquiring an additional 164 shares during the period. Hazlett Burt & Watson Inc. increased its holdings in CVS Health by 10.9% during the second quarter. Hazlett Burt & Watson Inc. now owns 1,682 shares of the pharmacy operator's stock valued at $117,000 after buying an additional 165 shares during the last quarter. Essex Financial Services Inc. boosted its position in shares of CVS Health by 0.8% in the first quarter. Essex Financial Services Inc. now owns 20,705 shares of the pharmacy operator's stock worth $1,403,000 after purchasing an additional 166 shares during the period. Finally, Loomis Sayles & Co. L P boosted its position in shares of CVS Health by 11.0% in the second quarter. Loomis Sayles & Co. L P now owns 1,674 shares of the pharmacy operator's stock worth $115,000 after purchasing an additional 166 shares during the period. 80.66% of the stock is owned by hedge funds and other institutional investors.

CVS Health Price Performance

CVS stock opened at $74.71 on Friday. The company's fifty day simple moving average is $68.85 and its 200 day simple moving average is $66.90. CVS Health has a 12-month low of $43.56 and a 12-month high of $77.34. The firm has a market cap of $94.75 billion, a price-to-earnings ratio of 20.87, a PEG ratio of 0.84 and a beta of 0.62. The company has a quick ratio of 0.62, a current ratio of 0.80 and a debt-to-equity ratio of 0.74.

CVS Health (NYSE:CVS - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The pharmacy operator reported $1.81 earnings per share for the quarter, beating the consensus estimate of $1.46 by $0.35. CVS Health had a net margin of 1.17% and a return on equity of 10.51%. The firm had revenue of $98.92 billion for the quarter, compared to analyst estimates of $94.87 billion. During the same quarter in the prior year, the business earned $1.83 earnings per share. The business's quarterly revenue was up 8.4% compared to the same quarter last year. CVS Health has set its FY 2025 guidance at 6.300-6.400 EPS. On average, analysts expect that CVS Health will post 5.89 earnings per share for the current year.

CVS Health Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Thursday, October 23rd will be issued a dividend of $0.665 per share. The ex-dividend date of this dividend is Thursday, October 23rd. This represents a $2.66 annualized dividend and a dividend yield of 3.6%. CVS Health's dividend payout ratio (DPR) is currently 74.30%.

About CVS Health

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.

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