Capital World Investors Raises Position in CVS Health Corporation $CVS

Key Points

• Capital World Investors raised its stake in CVS by 2.1% to 68,382,158 shares (about 5.39% of the company), valued at roughly $5.16 billion, while institutional ownership totals ~80.66% and other major funds (Norges Bank, Invesco, Vanguard) also increased positions.
• CVS beat Q results with EPS of $1.09 vs. $1.00 expected and revenue of $105.69B (+8.2% YoY), set FY2026 EPS guidance of $5.94–$6.14, and carries a "Moderate Buy" analyst consensus with an average target of $94.91.
• CVS pays a quarterly dividend of $0.665 (annualized $2.66, ~3.4% yield) but has a high payout ratio (~192.8%); the stock has a market cap of about $99.6B and a P/E near 56.7.

Capital World Investors lifted its position in CVS Health Corporation (NYSE:CVS - Free Report) by 2.1% in the 3rd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 68,382,158 shares of the pharmacy operator's stock after acquiring an additional 1,419,575 shares during the period. Capital World Investors owned 5.39% of CVS Health worth $5,155,380,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CVS. Norges Bank bought a new stake in shares of CVS Health in the 2nd quarter worth approximately $1,358,698,000. Invesco Ltd. lifted its position in CVS Health by 15.3% in the 2nd quarter. Invesco Ltd. now owns 23,532,479 shares of the pharmacy operator's stock valued at $1,623,270,000 after acquiring an additional 3,118,626 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of CVS Health by 1.7% in the second quarter. Vanguard Group Inc. now owns 120,399,131 shares of the pharmacy operator's stock worth $8,305,132,000 after purchasing an additional 2,063,737 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in CVS Health by 153.0% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,105,827 shares of the pharmacy operator's stock worth $214,240,000 after buying an additional 1,878,217 shares in the last quarter. Finally, Panagora Asset Management Inc. boosted its holdings in shares of CVS Health by 2,675.7% during the 2nd quarter. Panagora Asset Management Inc. now owns 1,116,742 shares of the pharmacy operator's stock valued at $77,033,000 after acquiring an additional 1,076,509 shares during the last quarter. 80.66% of the stock is owned by hedge funds and other institutional investors.

CVS Health Price Performance

Shares of NYSE:CVS opened at $78.25 on Tuesday. The firm's 50 day simple moving average is $78.46 and its two-hundred day simple moving average is $77.70. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.84 and a quick ratio of 0.63. The company has a market capitalization of $99.55 billion, a P/E ratio of 56.70, a P/E/G ratio of 0.81 and a beta of 0.49. CVS Health Corporation has a 1-year low of $58.35 and a 1-year high of $85.15.

CVS Health (NYSE:CVS - Get Free Report) last issued its earnings results on Tuesday, February 10th. The pharmacy operator reported $1.09 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.09. CVS Health had a net margin of 0.44% and a return on equity of 11.31%. The company had revenue of $105.69 billion during the quarter, compared to the consensus estimate of $103.67 billion. During the same quarter in the prior year, the firm posted $1.19 EPS. CVS Health's quarterly revenue was up 8.2% compared to the same quarter last year. CVS Health has set its FY 2026 guidance at 5.940-6.140 EPS. Research analysts expect that CVS Health Corporation will post 5.89 EPS for the current fiscal year.

CVS Health Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, February 2nd. Investors of record on Thursday, January 22nd were issued a $0.665 dividend. The ex-dividend date of this dividend was Thursday, January 22nd. This represents a $2.66 dividend on an annualized basis and a yield of 3.4%. CVS Health's payout ratio is currently 192.75%.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Barclays raised their target price on shares of CVS Health from $87.00 to $93.00 and gave the stock an "overweight" rating in a report on Wednesday, December 10th. Cantor Fitzgerald reissued an "overweight" rating on shares of CVS Health in a report on Wednesday, December 10th. Robert W. Baird lifted their price objective on CVS Health from $82.00 to $92.00 and gave the stock an "outperform" rating in a report on Wednesday, December 10th. UBS Group restated an "outperform" rating on shares of CVS Health in a research note on Wednesday, December 10th. Finally, Morgan Stanley boosted their target price on shares of CVS Health from $89.00 to $93.00 and gave the company an "overweight" rating in a research report on Wednesday, December 10th. Nineteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, CVS Health presently has an average rating of "Moderate Buy" and a consensus target price of $94.91.

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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