CVS Health (NYSE:CVS) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded CVS Health from buy to hold, though the broader analyst view remains positive with 21 buy ratings and an average Moderate Buy rating.
• Several firms recently raised price targets on CVS, including Wells Fargo, Truist, Mizuho, and DA Davidson, with the consensus target now around $104.04 versus a recent share price near $106.11.
• CVS reported strong quarterly results, beating earnings and revenue estimates, but the company also faces regulatory scrutiny from the FTC over prescription drug pricing and rebate practices.

CVS Health (NYSE:CVS - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Wednesday.

Several other research analysts have also recently weighed in on the company. DA Davidson boosted their target price on CVS Health from $80.00 to $100.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Robert W. Baird upped their target price on CVS Health from $92.00 to $94.00 and gave the company an "outperform" rating in a report on Wednesday, April 15th. Mizuho boosted their price target on shares of CVS Health from $110.00 to $115.00 and gave the company an "outperform" rating in a research report on Monday, June 8th. Truist Financial lifted their target price on shares of CVS Health from $108.00 to $118.00 and gave the stock a "buy" rating in a research note on Tuesday. Finally, Wells Fargo & Company raised their price target on shares of CVS Health from $103.00 to $123.00 and gave the stock an "overweight" rating in a report on Monday. Twenty-one analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $104.04.

CVS Health Price Performance

Shares of NYSE CVS opened at $106.11 on Wednesday. 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 stock has a market capitalization of $135.39 billion, a price-to-earnings ratio of 46.74, a PEG ratio of 1.04 and a beta of 0.61. The firm's 50 day simple moving average is $97.87 and its 200-day simple moving average is $84.60. CVS Health has a 12 month low of $58.50 and a 12 month high of $106.93.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share for the quarter, topping analysts' consensus estimates of $2.21 by $0.36. CVS Health had a return on equity of 11.88% and a net margin of 0.72%.The company had revenue of $100.43 billion during the quarter, compared to analysts' expectations of $94.99 billion. During the same quarter in the prior year, the firm posted $2.25 EPS. CVS Health's quarterly revenue was up 6.2% compared to the same quarter last year. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. Analysts expect that CVS Health will post 7.44 EPS for the current year.

Insider Buying and Selling

In other CVS Health news, Director Larry Robbins sold 1,983,538 shares of the firm's stock in a transaction 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 in the company, valued at $586,842,501.45. This trade represents a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Tilak Mandadi sold 69,551 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $89.58, for a total value of $6,230,378.58. Following the completion of the transaction, the executive vice president owned 10,133 shares in the company, valued at approximately $907,714.14. The trade was a 87.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 3,441,551 shares of company stock valued at $323,703,977 in the last quarter. 0.85% of the stock is owned by insiders.

Institutional Trading of CVS Health

Several institutional investors and hedge funds have recently bought and sold shares of the business. Trust Asset Management LLC increased its stake in CVS Health by 1.1% in the second quarter. Trust Asset Management LLC now owns 14,171 shares of the pharmacy operator's stock valued at $1,466,000 after purchasing an additional 149 shares during the period. Walker Asset Management LLC acquired a new stake in shares of CVS Health during the second quarter worth about $207,000. Regent Peak Wealth Advisors LLC purchased a new position in shares of CVS Health during the second quarter worth about $253,000. Annex Advisory Services LLC increased its position in CVS Health by 5.7% in the 2nd quarter. Annex Advisory Services LLC now owns 6,867 shares of the pharmacy operator's stock valued at $710,000 after acquiring an additional 368 shares during the period. Finally, Tema ETFs LLC raised its stake in CVS Health by 10.5% during the 2nd quarter. Tema ETFs LLC now owns 22,903 shares of the pharmacy operator's stock valued at $2,369,000 after acquiring an additional 2,175 shares during the last quarter. Hedge funds and other institutional investors own 80.66% of the company's stock.

CVS Health News Roundup

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

• Positive Sentiment: Truist raised CVS Health’s price target to $118 from $108 and kept a buy rating, signaling more upside from current levels.
• Positive Sentiment: CVS Caremark announced an agreement with the FTC that it says will improve transparency and affordability in prescription drug pricing, which may help reduce regulatory overhang and support investor confidence. Article Title
• Positive Sentiment: Management also highlighted GLP-1 support expansion across CVS pharmacies, MinuteClinic, and virtual channels, which could strengthen its healthcare services offering and drive more consumer traffic. Article Title
• Neutral Sentiment: Commentary from Jim Cramer and several value-oriented articles reinforced the view that CVS remains a popular large-cap healthcare stock, but these pieces are more sentiment-driven than fundamentally new.
• Negative Sentiment: The FTC settlement also underscores continued scrutiny of CVS Caremark’s rebate and pricing practices, including changes to how it handles drug rebates and future TrumpRx deductible credits, which could pressure margins or business terms over time. Article Title

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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