CVS Health (NYSE:CVS) Hits New 12-Month High - Here's Why

Key Points

• CVS Health's stock reached a new 52-week high at $74.95 during trading, closing at $73.81 with a trading volume of almost 1 million shares.
• Analysts have mixed ratings for CVS, with UBS raising its rating to buy and a target price of $79, while Bernstein lowered its target to $72, reflecting varying market perspectives.
• The company reported a net revenue increase of 8.4% year-over-year, with earnings per share (EPS) of $1.81, exceeding the consensus estimate of $1.46.

CVS Health Corporation (NYSE:CVS - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $74.95 and last traded at $73.81, with a volume of 996041 shares traded. The stock had previously closed at $73.97.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on CVS shares. UBS Group raised CVS Health from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $67.00 to $79.00 in a research note on Monday, August 18th. Bernstein Bank dropped their target price on CVS Health from $78.00 to $72.00 and set a "market perform" rating for the company in a report on Wednesday, July 16th. Barclays boosted their price objective on CVS Health from $80.00 to $87.00 and gave the company an "overweight" rating in a report on Thursday, September 4th. Cantor Fitzgerald reiterated an "overweight" rating and issued a $78.00 target price on shares of CVS Health in a report on Tuesday, August 26th. Finally, Cowen reiterated a "buy" rating on shares of CVS Health in a report on Monday, August 4th. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, CVS Health currently has a consensus rating of "Moderate Buy" and a consensus price target of $77.89.

CVS Health Stock Up 1.1%

The business has a 50 day moving average of $66.82 and a two-hundred day moving average of $66.14. The stock has a market capitalization of $94.84 billion, a PE ratio of 20.90, a PEG ratio of 0.79 and a beta of 0.62. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.62 and a current ratio of 0.80.

CVS Health (NYSE:CVS - Get Free Report) last announced its earnings results on Thursday, July 31st. The pharmacy operator reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.46 by $0.35. CVS Health had a return on equity of 10.51% and a net margin of 1.17%.The company had revenue of $98.92 billion for the quarter, compared to analyst estimates of $94.87 billion. During the same period in the prior year, the company posted $1.83 EPS. The firm'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. Analysts predict that CVS Health Corporation will post 5.89 EPS for the current year.

CVS Health Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 1st. Investors of record on Tuesday, July 22nd were given a dividend of $0.665 per share. This represents a $2.66 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend was Tuesday, July 22nd. CVS Health's dividend payout ratio is currently 74.30%.

Insider Transactions at CVS Health

In related news, Director Anne A. Finucane sold 7,500 shares of the company's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $71.02, for a total transaction of $532,650.00. Following the transaction, the director directly owned 22,156 shares of the company's stock, valued at $1,573,519.12. This represents a 25.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 1.22% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Jennison Associates LLC increased its holdings in shares of CVS Health by 503.8% in the first quarter. Jennison Associates LLC now owns 1,896,341 shares of the pharmacy operator's stock valued at $128,477,000 after purchasing an additional 1,582,257 shares during the period. Cerity Partners LLC increased its holdings in shares of CVS Health by 25.0% in the first quarter. Cerity Partners LLC now owns 648,266 shares of the pharmacy operator's stock valued at $43,920,000 after purchasing an additional 129,535 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of CVS Health by 2.1% in the first quarter. Bank of New York Mellon Corp now owns 8,981,262 shares of the pharmacy operator's stock valued at $608,481,000 after purchasing an additional 183,813 shares during the period. Brandywine Global Investment Management LLC increased its holdings in shares of CVS Health by 20.1% in the first quarter. Brandywine Global Investment Management LLC now owns 3,421,519 shares of the pharmacy operator's stock valued at $231,808,000 after purchasing an additional 572,533 shares during the period. Finally, Skandinaviska Enskilda Banken AB publ increased its holdings in shares of CVS Health by 122.5% in the first quarter. Skandinaviska Enskilda Banken AB publ now owns 565,152 shares of the pharmacy operator's stock valued at $38,289,000 after purchasing an additional 311,098 shares during the period. 80.66% of the stock is owned by institutional investors and hedge funds.

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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