CVS Health (NYSE:CVS) Sets New 1-Year High - What's Next?

Key Points

• CVS Health shares reached a new 52-week high of $77.34, with the last trading price at $76.36, supported by a strong trading volume of over 6.8 million shares.
• Several analyst upgrades were noted, including Wolfe Research raising the target price from $80.00 to $85.00 and UBS Group changing their rating from "neutral" to "buy," with an average price target of $78.25.
• CVS Health has announced a quarterly dividend of $0.665, representing an annualized basis of $2.66 and a dividend yield of 3.5%, with a payout ratio of 74.30%.

CVS Health Corporation (NYSE:CVS - Get Free Report) shares hit a new 52-week high during trading on Thursday . The company traded as high as $77.34 and last traded at $76.36, with a volume of 6802557 shares. The stock had previously closed at $76.50.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Wolfe Research upped their target price on CVS Health from $80.00 to $85.00 and gave the company an "outperform" rating in a report on Monday. UBS Group raised CVS Health from a "neutral" rating to a "buy" rating and upped their target price for the company from $67.00 to $79.00 in a report on Monday, August 18th. Jefferies Financial Group upped their target price on CVS Health from $74.00 to $80.00 and gave the company a "buy" rating in a report on Monday, June 30th. Zacks Research lowered CVS Health from a "strong-buy" rating to a "hold" rating in a report on Monday, September 8th. Finally, Baird R W raised CVS Health from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 14th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $78.25.

CVS Health Stock Performance

The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.62 and a current ratio of 0.80. The company has a market capitalization of $96.85 billion, a P/E ratio of 21.33, a price-to-earnings-growth ratio of 0.84 and a beta of 0.62. The business has a 50 day moving average of $68.63 and a 200-day moving average of $66.84.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The pharmacy operator reported $1.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 previous year, the company posted $1.83 EPS. The firm's revenue for the quarter 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, sell-side analysts predict that CVS Health Corporation will post 5.89 EPS for the current fiscal year.

CVS Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Thursday, October 23rd will be given a $0.665 dividend. This represents a $2.66 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Thursday, October 23rd. CVS Health's dividend payout ratio (DPR) is 74.30%.

Insider Activity

In related news, Director Anne A. Finucane sold 7,500 shares of the stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $71.02, for a total value of $532,650.00. Following the sale, the director owned 22,156 shares in the company, valued at approximately $1,573,519.12. This trade represents a 25.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 1.22% of the company's stock.

Institutional Investors Weigh In On CVS Health

A number of large investors have recently added to or reduced their stakes in the company. FineMark National Bank & Trust boosted its stake in CVS Health by 1.7% in the 2nd quarter. FineMark National Bank & Trust now owns 9,576 shares of the pharmacy operator's stock worth $661,000 after buying an additional 157 shares during the last quarter. Smartleaf Asset Management LLC boosted 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 worth $1,031,000 after acquiring an additional 164 shares during the last quarter. Hazlett Burt & Watson Inc. boosted its position 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 last quarter. Essex Financial Services Inc. boosted its holdings in shares of CVS Health by 0.8% in the 1st quarter. Essex Financial Services Inc. now owns 20,705 shares of the pharmacy operator's stock valued at $1,403,000 after purchasing an additional 166 shares during the last quarter. Finally, Loomis Sayles & Co. L P boosted its holdings in shares of CVS Health by 11.0% in the 2nd quarter. Loomis Sayles & Co. L P now owns 1,674 shares of the pharmacy operator's stock valued at $115,000 after purchasing an additional 166 shares during the last quarter. 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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