CVS Health Corporation $CVS Holdings Lifted by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital boosted its CVS stake by 70.5% in Q3, buying 2,188,307 shares to hold 5,294,134 shares (~0.42% of the company) worth about $399.1 million.
• CVS is attracting positive analyst attention (Sanford C. Bernstein upgraded to "outperform" with a ~$94 target) and launched an AI-powered consumer health platform, a strategic push into digital care that could support margin expansion and higher patient engagement.
• Regulatory and operational risks remain: Aetna agreed to a $117.7M DOJ settlement over Medicare Advantage coding, and CVS warned it may close 100+ Tennessee pharmacies amid PBM-related legislation, creating potential expenses and local revenue disruption.

Arrowstreet Capital Limited Partnership grew its holdings in shares of CVS Health Corporation (NYSE:CVS - Free Report) by 70.5% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 5,294,134 shares of the pharmacy operator's stock after buying an additional 2,188,307 shares during the period. Arrowstreet Capital Limited Partnership owned 0.42% of CVS Health worth $399,125,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Harbor Capital Advisors Inc. increased its position in CVS Health by 72.1% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 339 shares of the pharmacy operator's stock valued at $26,000 after acquiring an additional 142 shares during the period. Corundum Trust Company INC acquired a new position in CVS Health during the 3rd quarter worth $29,000. Front Row Advisors LLC grew its stake in shares of CVS Health by 436.5% in the second quarter. Front Row Advisors LLC now owns 456 shares of the pharmacy operator's stock worth $31,000 after purchasing an additional 371 shares in the last quarter. SOA Wealth Advisors LLC. increased its holdings in shares of CVS Health by 36.9% during the third quarter. SOA Wealth Advisors LLC. now owns 486 shares of the pharmacy operator's stock valued at $37,000 after purchasing an additional 131 shares during the period. Finally, Twin Peaks Wealth Advisors LLC acquired a new position in shares of CVS Health during the second quarter valued at $36,000. 80.66% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting CVS Health

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

• Positive Sentiment: Sanford C. Bernstein upgraded CVS from "market perform" to "outperform" and raised its price target to $94, increasing analyst conviction and suggesting ~23% upside vs. current levels. Read More.
• Positive Sentiment: CVS announced an AI-powered consumer health platform — a strategic push into digital care and personalization that could support margin expansion and higher patient engagement over time. Product rollout increases growth narrative beyond traditional retail/pharmacy. Read More.
• Positive Sentiment: Coverage of CVS investing in advanced consumer tech ("agentic twins") signals ongoing R&D and digital transformation that investors often reward if it drives stickier customer relationships and services revenue. Read More.
• Neutral Sentiment: North Carolina's health-plan contracting dynamics may trigger a competitive bidding environment for Aetna and CVS; this could create upside from new wins but also pressure on pricing depending on outcomes. Monitor contract renewals and win rates. Read More.
• Neutral Sentiment: Health-care sector weakness is a short-term headwind: the NYSE Health Care Index was modestly lower recently, which can pressure CVS alongside peers even when company-specific news is mixed. Read More.
• Neutral Sentiment: Market commentators note CVS is modestly down since its last earnings report — investors should focus on FY2026 guidance vs. consensus and upcoming catalysts that could re-rate the stock. Read More.
• Negative Sentiment: DOJ settlement: Aetna (CVS's unit) agreed to a $117.7M settlement over alleged Medicare Advantage coding issues. While not crippling to cash flows, it is a near-term legal expense and adds regulatory scrutiny for Aetna's Medicare business. Read More.
• Negative Sentiment: CVS says it may close 100+ Tennessee pharmacies in response to state PBM-related legislation — a politically charged dispute that could disrupt retail access, revenue in affected markets, and raise execution/PR risk if closures proceed. Read More.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on CVS. Wells Fargo & Company reduced their price objective on shares of CVS Health from $103.00 to $102.00 and set an "overweight" rating for the company in a report on Thursday, November 13th. Bank of America dropped their price target on shares of CVS Health from $100.00 to $95.00 and set a "buy" rating on the stock in a research report on Tuesday, January 27th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of CVS Health in a research note on Monday, December 29th. Barclays increased their price objective on shares of CVS Health from $87.00 to $93.00 and gave the company an "overweight" rating in a report on Wednesday, December 10th. Finally, JPMorgan Chase & Co. boosted their price objective on CVS Health from $93.00 to $101.00 and gave the stock an "overweight" rating in a research note on Wednesday, December 17th. Twenty equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $95.05.

CVS Health Trading Up 0.5%

CVS Health stock opened at $76.10 on Friday. The firm has a market cap of $96.81 billion, a price-to-earnings ratio of 55.14, a price-to-earnings-growth ratio of 0.79 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. The firm's 50 day moving average price is $78.25 and its two-hundred day moving average price is $77.71. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.63 and a current ratio of 0.84.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings data 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. The business had revenue of $105.69 billion during the quarter, compared to analyst estimates of $103.67 billion. CVS Health had a return on equity of 11.31% and a net margin of 0.44%.The company's revenue was up 8.2% compared to the same quarter last year. During the same period last year, the company posted $1.19 EPS. CVS Health has set its FY 2026 guidance at 5.940-6.140 EPS. On average, research analysts predict that CVS Health Corporation will post 5.89 EPS for the current fiscal year.

CVS Health Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, February 2nd. Investors of record on Thursday, January 22nd were paid 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 3.5%. CVS Health's dividend payout ratio (DPR) is currently 192.75%.

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.

Want to see what other hedge funds are holding CVS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CVS Health Corporation (NYSE:CVS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.