CVS Health (NYSE:CVS) Sets New 12-Month High - Here's What Happened

Key Points

• CVS Health hit a new 52-week high during Wednesday trading, reaching as high as $98.61 after closing at $97.06 the prior day.
• The stock’s move was supported by positive news flow, including expanded GLP-1 coverage through CVS Caremark, improving turnaround sentiment, and multiple analysts raising price targets or reaffirming bullish ratings.
• Recent results were also strong, with CVS reporting better-than-expected quarterly earnings and revenue; however, the company still faces PBM/legal scrutiny and heavy insider selling that could weigh on sentiment.

CVS Health Corporation (NYSE:CVS - Get Free Report)'s share price reached a new 52-week high during trading on Wednesday . The company traded as high as $98.61 and last traded at $98.1440, with a volume of 4587487 shares. The stock had previously closed at $97.06.

CVS Health News Roundup

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: CVS Caremark expanded coverage options for GLP-1 weight-loss medications, which should improve affordability and access for members while supporting retention and utilization in a key growth category. CVS Caremark Delivers Affordability and Access to GLP-1 Weight Management Medications With Expanded Coverage Options
• Positive Sentiment: CVS is being viewed as a turnaround story after stronger recent results, with commentary highlighting improving insurance performance and better retail pharmacy share, which may be reinforcing bullish sentiment. CVS Offers A Compelling Turnaround Opportunity Not Seen In Years
• Positive Sentiment: CVS received outside validation from analysts and research coverage, including a higher price target from Truist and “Buy” support, suggesting Wall Street sees more upside from current levels. CVS Health (CVS): One of the Best Blue Chip Stocks Under $100 to Buy Now
• Neutral Sentiment: CVS announced recognition for technology that improves medication safety and patient care, which supports its brand but is unlikely to drive near-term earnings by itself. CVS Health Recognized for Technology That Improves Medication Safety and Patient Care
• Neutral Sentiment: CVS also tapped a new CFO for health care delivery and launched an AI learning initiative, both of which point to ongoing operational changes but do not yet materially change the financial outlook. CVS Health taps new CFO of health care delivery
• Negative Sentiment: Headline risk remains from a lawsuit by major hospitals over an alleged drug-discount scheme, adding another layer of legal and PBM scrutiny that could pressure sentiment. Major hospitals sue CVS over alleged drug discount scheme
• Negative Sentiment: Broader scrutiny of CVS’s pharmacy benefit manager practices continues, which could weigh on valuation even as the company expands GLP-1 access. CVS Health (CVS) Valuation Check As GLP 1 Access Expands And PBM Scrutiny Intensifies

Analysts Set New Price Targets

Several analysts have recently commented on the company. Piper Sandler reaffirmed an "overweight" rating and issued a $113.00 target price on shares of CVS Health in a research report on Monday, June 1st. Mizuho increased their price target on shares of CVS Health from $110.00 to $115.00 and gave the stock an "outperform" rating in a research report on Monday. Wall Street Zen raised shares of CVS Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Wolfe Research dropped their price objective on shares of CVS Health from $100.00 to $97.00 and set an "outperform" rating on the stock in a research note on Monday, March 2nd. Finally, Wells Fargo & Company increased their target price on shares of CVS Health from $102.00 to $103.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Twenty-two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $100.68.

CVS Health Trading Up 1.1%

The firm has a market capitalization of $125.16 billion, a price-to-earnings ratio of 43.21, a price-to-earnings-growth ratio of 0.95 and a beta of 0.62. The company has a fifty day moving average price of $85.19 and a 200-day moving average price of $80.32. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.78.

CVS Health (NYSE:CVS - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.36. The firm had revenue of $100.43 billion for the quarter, compared to analyst estimates of $94.99 billion. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The company's revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter last year, the firm earned $2.25 earnings per share. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. On average, equities research analysts predict that CVS Health Corporation will post 7.44 EPS for the current year.

CVS Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, May 4th. Investors of record on Thursday, April 23rd were issued a $0.665 dividend. The ex-dividend date was Thursday, April 23rd. This represents a $2.66 dividend on an annualized basis and a yield of 2.7%. CVS Health's dividend payout ratio is currently 117.18%.

Insider Activity

In related news, EVP Tilak Mandadi sold 69,551 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $89.58, for a total value of $6,230,378.58. Following the transaction, the executive vice president directly owned 10,133 shares of the company's stock, valued at approximately $907,714.14. This trade represents a 87.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Larry Robbins sold 1,983,538 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $94.45, for a total value of $187,345,164.10. Following the sale, the director directly owned 6,213,261 shares of the company's stock, valued at $586,842,501.45. The trade was a 24.20% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 3,441,551 shares of company stock worth $323,703,977. Corporate insiders own 0.85% of the company's stock.

Institutional Trading of CVS Health

Institutional investors and hedge funds have recently modified their holdings of the company. Kingsview Wealth Management LLC boosted its stake in CVS Health by 316.2% in the third quarter. Kingsview Wealth Management LLC now owns 104,432 shares of the pharmacy operator's stock valued at $7,873,000 after acquiring an additional 79,340 shares during the last quarter. Intech Investment Management LLC raised its position in shares of CVS Health by 50.3% during the 3rd quarter. Intech Investment Management LLC now owns 86,564 shares of the pharmacy operator's stock valued at $6,526,000 after acquiring an additional 28,953 shares during the last quarter. Assetmark Inc. lifted its stake in shares of CVS Health by 12.5% in the 3rd quarter. Assetmark Inc. now owns 678,558 shares of the pharmacy operator's stock valued at $51,156,000 after purchasing an additional 75,603 shares during the period. Hamlin Capital Management LLC bought a new position in shares of CVS Health in the 4th quarter worth $160,844,000. Finally, Cresset Asset Management LLC grew its stake in shares of CVS Health by 56.8% during the third quarter. Cresset Asset Management LLC now owns 35,481 shares of the pharmacy operator's stock worth $2,675,000 after purchasing an additional 12,849 shares during the period. 80.66% of the stock is currently owned by institutional investors.

About CVS Health

CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.

Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.

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