CVS Health Corporation $CVS Stock: SteelPeak Wealth LLC Raises Stake

Key Points

• SteelPeak Wealth significantly increased its CVS stake by 1,168.7% in the third quarter, ending with 30,410 shares valued at approximately $2.6 million. Institutional investors and hedge funds collectively own 80.66% of the company.
• Analysts remain broadly positive, with 20 Buy ratings and three Holds, producing a consensus “Moderate Buy” rating and an average price target of $107.80. CVS shares recently opened at $92.41, below the consensus target.
• CVS exceeded quarterly expectations with $2.58 in earnings per share and $106.1 billion in revenue, while maintaining a quarterly dividend of $0.665 per share, equivalent to a 2.9% yield. Potential concerns include Medicare Advantage membership pressure and a reported $315 million opioid-related settlement.

SteelPeak Wealth LLC increased its stake in shares of CVS Health Corporation (NYSE:CVS - Free Report) by 1,168.7% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 30,410 shares of the pharmacy operator's stock after buying an additional 28,013 shares during the quarter. SteelPeak Wealth LLC's holdings in CVS Health were worth $2,606,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in CVS. Kilter Group LLC bought a new position in shares of CVS Health during the second quarter worth about $27,000. Beaird Harris Wealth Management LLC lifted its position in CVS Health by 201.0% in the 2nd quarter. Beaird Harris Wealth Management LLC now owns 292 shares of the pharmacy operator's stock valued at $30,000 after purchasing an additional 195 shares during the last quarter. J.Safra Asset Management Corp bought a new stake in CVS Health in the 2nd quarter valued at about $30,000. Timbuktu Capital Management LLC acquired a new position in CVS Health during the 2nd quarter valued at about $31,000. Finally, Dunhill Financial LLC acquired a new position in CVS Health during the 2nd quarter valued at about $32,000. 80.66% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

CVS has been the topic of several analyst reports. Bank of America raised their price target on shares of CVS Health from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, June 22nd. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $112.00 price target on shares of CVS Health in a report on Wednesday, September 9th. BMO Capital Markets set a $112.00 price objective on CVS Health in a research report on Wednesday, September 9th. Barclays boosted their price objective on CVS Health from $106.00 to $108.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Finally, Wall Street Zen lowered CVS Health from a "strong-buy" rating to a "buy" rating in a report on Monday. Twenty research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $107.80.

CVS Health Stock Performance

Shares of CVS opened at $92.41 on Monday. The firm has a market capitalization of $118.19 billion, a PE ratio of 24.45, a P/E/G ratio of 0.86 and a beta of 0.60. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.74. The firm has a 50-day moving average price of $91.74 and a 200 day moving average price of $93.19. CVS Health Corporation has a 52-week low of $69.51 and a 52-week high of $110.68.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 EPS for the quarter, topping analysts' consensus estimates of $1.87 by $0.71. The company had revenue of $106.10 billion for the quarter, compared to the consensus estimate of $100.03 billion. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. CVS Health's revenue was up 7.3% on a year-over-year basis. During the same period in the previous year, the firm earned $1.81 EPS. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. On average, sell-side analysts anticipate that CVS Health Corporation will post 8.02 earnings per share for the current fiscal year.

CVS Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 22nd will be issued a dividend of $0.6650 per share. The ex-dividend date of this dividend is Thursday, October 22nd. This represents a $2.66 annualized dividend and a yield of 2.9%. CVS Health's payout ratio is presently 70.37%.

CVS Health News Summary

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

• Positive Sentiment: Value and dividend appeal: Zacks identifies CVS as a potentially attractive long-term value stock, while a separate dividend roundup highlights CVS among income-oriented companies. These reports may support investor interest, although they do not represent new company guidance. Why CVS Health Is a Top Value Stock for the Long-Term Dividend roundup
• Positive Sentiment: Care-management and consumer initiatives: CVS Caremark is promoting more connected, personalized pharmacy-benefit experiences. CVS also announced a women’s midlife-health research collaboration and highlighted Signify Health’s at-home heart-rhythm monitoring for eligible members. These efforts could strengthen engagement and differentiate CVS’s health-services platform, but the articles provide no immediate financial targets. CVS Caremark Is Transforming the Health Care Experience CVS Health midlife-health collaboration
• Neutral Sentiment: CVS Caremark appeared in a consumer-focused segment explaining pharmacy benefits as customers evaluate insurance plans. The exposure may improve public understanding of the business but is unlikely to materially affect near-term earnings. CVS Caremark explains pharmacy benefits
• Negative Sentiment: Medicare Advantage exposure: Reports that Medicare Advantage plans, including a CVS plan, will leave New Hampshire raise concerns about membership losses and pressure on the company’s government-business outlook. The specific financial impact was not disclosed. Medical Advantage plans leaving New Hampshire
• Negative Sentiment: Legal overhang: CVS faces a reported $315 million settlement related to allegations involving dangerous opioid prescriptions. Even if the payment is manageable relative to CVS’s size, the matter adds costs and reputational risk. CVS opioid settlement

About CVS Health

CVS Health Corporation NYSE: CVS is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company's Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.

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