CVS Health (NYSE:CVS) Sets New 12-Month High on Analyst Upgrade

Key Points

• CVS Health shares hit a new 52-week high after TD Cowen raised its price target to $110 from $105 and reaffirmed a buy rating. The stock traded as high as $92.77, extending recent momentum.
• Analyst sentiment remains broadly positive, with 22 analysts rating CVS a Buy and four a Hold. The consensus price target is $96.12, and several firms recently lifted their targets.
• CVS also reported better-than-expected quarterly results, including EPS of $2.57 versus $2.21 expected and revenue of $100.43 billion versus $94.99 billion forecast. Management also raised FY2026 guidance to $7.30-$7.50 EPS.

Shares of CVS Health Corporation (NYSE:CVS - Get Free Report) reached a new 52-week high on Tuesday after TD Cowen raised their price target on the stock from $105.00 to $110.00. TD Cowen currently has a buy rating on the stock. CVS Health traded as high as $92.77 and last traded at $92.22, with a volume of 12023251 shares traded. The stock had previously closed at $90.55.

A number of other analysts also recently issued reports on CVS. HSBC lifted their price objective on shares of CVS Health from $83.00 to $85.00 and gave the company a "hold" rating in a report on Tuesday, May 5th. Barclays increased their price objective on shares of CVS Health from $93.00 to $101.00 and gave the stock an "overweight" rating in a research note on Thursday. The Goldman Sachs Group increased their price objective on shares of CVS Health from $95.00 to $97.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Truist Financial boosted their price target on CVS Health from $98.00 to $102.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Finally, Wall Street Zen raised CVS Health from a "hold" rating to a "buy" rating in a research report on Saturday. Twenty-two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $96.12.

Insider Transactions at CVS Health

In other CVS Health news, EVP Tilak Mandadi sold 69,551 shares of the firm's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the completion of the sale, the executive vice president owned 10,133 shares of the company's stock, valued at $907,714.14. This trade represents a 87.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.85% of the stock is owned by corporate insiders.

Key Stories Impacting CVS Health

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

• Positive Sentiment: TD Cowen raised its price target on CVS Health to $110 from $105 and reiterated a buy rating, signaling confidence in further upside after the company’s earnings beat and improved outlook. TD Cowen adjusts price target on CVS Health to 110 from 105
• Positive Sentiment: Recent coverage highlights CVS as a potentially undervalued stock, pointing to strong Q1 revenue growth, higher EPS, and improving margins/medical benefit ratio as signs that fundamentals are strengthening. CVS Health: Still Cheap And Signs Of Improvement
• Positive Sentiment: Commentary from CNBC’s “Final Trades” and other market chatter suggests CVS remains a favored healthcare name among some investors, adding to the bullish tone. Nvidia, CVS Health, Vertiv and an energy stock on CNBC's Final Trades
• Neutral Sentiment: An executive stock sale by EVP Tilak Mandadi was disclosed, with 69,551 shares sold at an average price of $89.58. While insider selling can draw attention, the transaction appears more likely to be viewed as portfolio-related than a fundamental red flag. SEC Form 4 filing
• Neutral Sentiment: Additional articles this weekend argued CVS looks like a strong value stock and could benefit from broader healthcare policy trends, reinforcing the current bullish narrative but without new company-specific catalysts. Here's Why CVS Health (CVS) is a Strong Value Stock

Institutional Trading of CVS Health

Several hedge funds have recently added to or reduced their stakes in CVS. Swiss RE Ltd. acquired a new position in shares of CVS Health in the fourth quarter valued at about $26,000. Sankala Group LLC acquired a new position in shares of CVS Health in the fourth quarter valued at about $28,000. Caitong International Asset Management Co. Ltd raised its position in shares of CVS Health by 407.2% in the third quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator's stock valued at $26,000 after buying an additional 281 shares in the last quarter. Mcguire Capital Advisors Inc. acquired a new stake in shares of CVS Health in the fourth quarter valued at approximately $28,000. Finally, Ares Financial Consulting LLC acquired a new stake in shares of CVS Health in the fourth quarter valued at approximately $29,000. 80.66% of the stock is owned by institutional investors and hedge funds.

CVS Health Trading Up 1.8%

The company has a market capitalization of $117.67 billion, a price-to-earnings ratio of 40.63, a P/E/G ratio of 0.88 and a beta of 0.60. The company has a debt-to-equity ratio of 0.78, a current ratio of 0.87 and a quick ratio of 0.66. The business's 50-day moving average price is $77.43 and its two-hundred day moving average price is $78.15.

CVS Health (NYSE:CVS - Get Free Report) last released its earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.36. The company had revenue of $100.43 billion for the quarter, compared to analyst estimates of $94.99 billion. CVS Health had a return on equity of 11.88% and a net margin of 0.72%.CVS Health's quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the prior year, the firm posted $2.25 EPS. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. Research analysts predict that CVS Health Corporation will post 7.48 earnings per share for the current year.

CVS Health Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, May 4th. Stockholders of record on Thursday, April 23rd were given a $0.665 dividend. The ex-dividend date was Thursday, April 23rd. This represents a $2.66 annualized dividend and a dividend yield of 2.9%. CVS Health's payout ratio is presently 117.18%.

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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