Arrowstreet Capital Limited Partnership Purchases 1,899,932 Shares of CVS Health Corporation $CVS

Key Points

• Arrowstreet Capital boosted its CVS Health stake by 44% in the first quarter, buying nearly 1.9 million additional shares and bringing its total position to 6.22 million shares worth about $446.7 million.
• CVS Health reported better-than-expected first-quarter earnings and revenue, with EPS of $2.57 versus estimates of $2.21 and revenue of $100.43 billion versus $94.99 billion expected. The company also reaffirmed FY 2026 EPS guidance of 7.30 to 7.50.
• Wall Street remains broadly bullish on the stock, with 21 Buy ratings and a consensus price target of $105.38. CVS also announced a quarterly dividend of $0.665 per share, yielding about 2.5% annualized.

Arrowstreet Capital Limited Partnership grew its position in CVS Health Corporation (NYSE:CVS - Free Report) by 44.0% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 6,219,756 shares of the pharmacy operator's stock after buying an additional 1,899,932 shares during the period. Arrowstreet Capital Limited Partnership owned 0.49% of CVS Health worth $446,703,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. State Street Corp lifted its stake in shares of CVS Health by 2.1% in the 4th quarter. State Street Corp now owns 60,183,743 shares of the pharmacy operator's stock valued at $4,776,182,000 after purchasing an additional 1,245,457 shares during the period. Fort Washington Investment Advisors Inc. OH raised its holdings in CVS Health by 2.9% in the fourth quarter. Fort Washington Investment Advisors Inc. OH now owns 725,189 shares of the pharmacy operator's stock worth $57,551,000 after buying an additional 20,217 shares during the last quarter. Legal & General Group Plc raised its holdings in CVS Health by 0.3% in the 4th quarter. Legal & General Group Plc now owns 9,309,182 shares of the pharmacy operator's stock worth $738,777,000 after acquiring an additional 31,249 shares during the last quarter. Deutsche Bank AG raised its holdings in CVS Health by 28.4% in the 4th quarter. Deutsche Bank AG now owns 4,666,495 shares of the pharmacy operator's stock worth $370,333,000 after acquiring an additional 1,031,998 shares during the last quarter. Finally, KBC Group NV lifted its position in CVS Health by 200.4% in the 4th quarter. KBC Group NV now owns 676,809 shares of the pharmacy operator's stock valued at $53,711,000 after acquiring an additional 451,521 shares in the last quarter. Institutional investors and hedge funds own 80.66% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have commented on CVS shares. Deutsche Bank Aktiengesellschaft lifted their target price on CVS Health from $88.00 to $92.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Cantor Fitzgerald upped their price target on CVS Health from $100.00 to $110.00 and gave the company an "overweight" rating in a report on Tuesday, July 7th. TD Cowen lifted their price objective on CVS Health from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Sanford C. Bernstein boosted their target price on CVS Health from $94.00 to $106.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. Finally, DA Davidson upped their target price on shares of CVS Health from $80.00 to $100.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Twenty-one investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $105.38.

CVS Health Stock Down 1.1%

NYSE CVS opened at $106.86 on Friday. The stock's 50-day moving average price is $99.98 and its 200-day moving average price is $85.97. The company has a market capitalization of $136.35 billion, a P/E ratio of 47.08, a price-to-earnings-growth ratio of 1.06 and a beta of 0.61. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.78. CVS Health Corporation has a 52 week low of $58.50 and a 52 week high of $110.68.

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 during 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 firm's quarterly revenue was up 6.2% compared to the same quarter last year. 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. On average, equities research analysts predict that CVS Health Corporation will post 7.46 earnings per share for the current year.

CVS Health Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd will be issued a dividend of $0.665 per share. This represents a $2.66 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Thursday, July 23rd. CVS Health's dividend payout ratio (DPR) is 117.18%.

Key Headlines Impacting CVS Health

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

• Positive Sentiment: Analysts and market commentary pointed to improving execution, stronger payer margins, and a modest lift in CVS’s fair value estimate, suggesting Wall Street sees more upside in the stock. CVS Health (CVS) Stock Sees Modest Fair Value Lift As Analysts Raise Targets
• Positive Sentiment: Options activity was unusually strong, with traders buying far more call options than normal, which can signal expectations for continued upside.
• Positive Sentiment: CVS’s new nationwide pet-prescription service has generated widespread coverage and could support pharmacy traffic and customer engagement. CVS is making it easier for pet owners with a new perk
• Neutral Sentiment: Brokerage coverage remains constructive, with CVS receiving a consensus “Moderate Buy” rating and another recent upgrade to Buy, reinforcing a generally favorable analyst stance. CVS Health Corporation NYSE: CVS Receives Consensus Rating of "Moderate Buy" from Brokerages
• Neutral Sentiment: Several articles highlighted CVS’s community-health investments in Massachusetts, but these are more reputational than immediately material to earnings. CVS Health Helping to Strengthen Communities Across Massachusetts
• Negative Sentiment: Henry Ford Health filed a lawsuit against CVS alleging a 340B pricing scheme, which could create legal and reputational risk if the claims gain traction. Henry Ford Health sues CVS, alleges 340B pricing scheme

Insider Transactions at CVS Health

In other CVS Health news, Director Larry Robbins sold 1,983,538 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $94.45, for a total transaction of $187,345,164.10. Following the completion of the transaction, the director 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 document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Tilak Mandadi sold 69,551 shares of the business's stock in a transaction dated 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 in the company, valued at approximately $907,714.14. This trade represents a 87.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 3,441,551 shares of company stock valued at $323,703,977. Company insiders own 0.85% of the company's stock.

CVS Health Company Profile

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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