CVS Health (NYSE:CVS) Hits New 52-Week High - Should You Buy?

Key Points

• CVS Health reached a new 52-week high, trading at $79.42 with over 1.8 million shares exchanged, reflecting increased investor interest.
• Analysts have mixed opinions, with Bernstein reducing its target to $72 and others like Barclays raising theirs to $87, while the stock holds an average rating of "Moderate Buy."
• The company announced a quarterly dividend of $0.665, representing an annualized yield of 3.4%, with a payout ratio of 74.30%.

CVS Health Corporation (NYSE:CVS - Get Free Report) reached a new 52-week high during trading on Monday . The stock traded as high as $79.32 and last traded at $79.42, with a volume of 1841471 shares traded. The stock had previously closed at $77.90.

Wall Street Analyst Weigh In

A number of research firms have commented on CVS. Bernstein Bank decreased their target price on shares of CVS Health from $78.00 to $72.00 and set a "market perform" rating on the stock in a research note on Wednesday, July 16th. Zacks Research downgraded shares of CVS Health from a "strong-buy" rating to a "hold" rating in a report on Monday, September 8th. Cowen reiterated a "buy" rating on shares of CVS Health in a research report on Monday, August 4th. Wolfe Research upped their price objective on CVS Health from $80.00 to $85.00 and gave the company an "outperform" rating in a research report on Monday, September 22nd. Finally, Barclays raised 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. Two analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $79.80.

CVS Health Price Performance

The stock has a market cap of $100.65 billion, a PE ratio of 22.16, a price-to-earnings-growth 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 0.80 and a quick ratio of 0.62. The stock's fifty day moving average is $72.28 and its 200-day moving average is $67.67.

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 for the quarter, topping 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 company had revenue of $98.92 billion during the quarter, compared to analyst estimates of $94.87 billion. During the same quarter last year, the firm posted $1.83 earnings per share. CVS Health's 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. As a group, equities analysts anticipate that CVS Health Corporation will post 5.89 EPS for the current year.

CVS Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Thursday, October 23rd will be paid a $0.665 dividend. The ex-dividend date is Thursday, October 23rd. This represents a $2.66 dividend on an annualized basis and a yield of 3.4%. CVS Health's payout ratio is currently 74.30%.

Insider Activity at CVS Health

In other news, Director Anne A. Finucane sold 7,500 shares of the business's stock in a transaction dated 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 directly owned 22,156 shares in the company, valued at $1,573,519.12. The trade was a 25.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.22% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CVS. HF Advisory Group LLC increased its stake in shares of CVS Health by 2.9% in the third quarter. HF Advisory Group LLC now owns 5,219 shares of the pharmacy operator's stock worth $393,000 after purchasing an additional 145 shares in the last quarter. FineMark National Bank & Trust lifted its stake in shares of 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 buying an additional 157 shares in the last quarter. 1620 Investment Advisors Inc. increased its stake in CVS Health by 6.1% in the 3rd quarter. 1620 Investment Advisors Inc. now owns 2,736 shares of the pharmacy operator's stock worth $206,000 after buying an additional 157 shares in the last quarter. Smartleaf Asset Management LLC lifted its position 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 valued at $1,031,000 after acquiring an additional 164 shares in the last quarter. Finally, Hazlett Burt & Watson Inc. boosted its stake in shares of CVS Health by 10.9% in the second quarter. Hazlett Burt & Watson Inc. now owns 1,682 shares of the pharmacy operator's stock worth $117,000 after acquiring an additional 165 shares during the period. Hedge funds and other institutional investors own 80.66% of the company's stock.

CVS Health Company Profile

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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