Davis Selected Advisers Acquires 1,356,870 Shares of CVS Health Corporation $CVS

Key Points

• Davis Selected Advisers increased its stake in CVS by 11.9%, buying an additional 1,356,870 shares to hold 12,760,511 shares worth about $1.01 billion, making CVS ~4.6% of the fund and its 6th largest position.
• Analyst sentiment is broadly positive with 20 Buy and 3 Hold ratings and an average price target of $95.05, though some firms have trimmed targets amid near‑term margin concerns.
• CVS recently beat quarterly estimates (EPS $1.09, revenue $105.69B), set FY‑2026 guidance of $5.94–$6.14 EPS, and declared a quarterly dividend of $0.665 (≈3.2% yield), while trading at a high trailing P/E (~59.5).

Davis Selected Advisers boosted its holdings in shares of CVS Health Corporation (NYSE:CVS - Free Report) by 11.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 12,760,511 shares of the pharmacy operator's stock after buying an additional 1,356,870 shares during the period. CVS Health makes up about 4.6% of Davis Selected Advisers' portfolio, making the stock its 6th largest position. Davis Selected Advisers owned approximately 1.01% of CVS Health worth $1,012,675,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of CVS. Caitong International Asset Management Co. Ltd raised its holdings in CVS Health by 407.2% during the third quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator's stock worth $26,000 after buying an additional 281 shares during the last quarter. Corundum Trust Company INC acquired a new position in CVS Health during the third quarter worth $29,000. Ares Financial Consulting LLC acquired a new position in CVS Health during the fourth quarter worth $29,000. GoalVest Advisory LLC acquired a new position in CVS Health during the fourth quarter worth $32,000. Finally, SOA Wealth Advisors LLC. raised its holdings in CVS Health by 36.9% during the third quarter. SOA Wealth Advisors LLC. now owns 486 shares of the pharmacy operator's stock worth $37,000 after buying an additional 131 shares during the last quarter. Institutional investors and hedge funds own 80.66% of the company's stock.

Analyst Ratings Changes

Several analysts have recently commented on CVS shares. TD Cowen reiterated a "buy" rating on shares of CVS Health in a report on Friday, March 13th. Argus lowered their target price on shares of CVS Health from $91.00 to $90.00 and set a "buy" rating for the company in a report on Wednesday, January 28th. Robert W. Baird increased their target price on shares of CVS Health from $92.00 to $94.00 and gave the company an "outperform" rating in a report on Wednesday, April 15th. Leerink Partners reiterated an "outperform" rating and issued a $98.00 target price on shares of CVS Health in a report on Thursday, March 5th. Finally, Bank of America lowered their target price on shares of CVS Health from $100.00 to $95.00 and set a "buy" rating for the company in a report on Tuesday, January 27th. Twenty equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $95.05.

Key Stories Impacting CVS Health

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

• Positive Sentiment: Regulatory tailwinds for Aetna and clearer PBM policy raised upside visibility for CVS’s Health Services and PBM businesses, boosting investor optimism about Medicare Advantage payments and reduced insulin‑pricing uncertainty. Regulatory Tailwinds Article
• Positive Sentiment: Operational efficiency gains from automation: WSJ reports on CVS’s new highly automated distribution center using robots to move millions of items with far fewer staff — a potential long‑term margin lever. Robotics/Operations Article
• Positive Sentiment: Competitive positioning: coverage notes CVS is pushing health‑services expansion while Walgreens pulls back, which could support share gains in higher‑margin care services. Competitive Positioning Article
• Neutral Sentiment: Earnings preview / analyst focus: Wall Street is parsing Q1 metrics (revenue, pharmacy trends and Health Services growth). Investors are waiting for the company’s March‑quarter results and management color before re‑rating shares. Earnings Countdown Article
• Negative Sentiment: Near‑term margin risk: earnings previews caution that benefits segment pressures and elevated costs could weigh on Q1 results, a key reason investors are cautious ahead of the print. Earnings Preview Article
• Negative Sentiment: Market dynamics and valuation: after a strong run-up, the stock’s rich near‑term multiples and lighter intraday volume can amplify down‑moves as investors lock in gains while awaiting Q1 clarity (contributing to today’s pullback).

CVS Health Price Performance

CVS opened at $82.12 on Friday. The firm has a market cap of $105.24 billion, a P/E ratio of 59.51, a PEG ratio of 0.87 and a beta of 0.60. The firm has a 50-day moving average of $76.32 and a 200 day moving average of $77.97. 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 Corporation has a fifty-two week low of $58.35 and a fifty-two week high of $85.15.

CVS Health (NYSE:CVS - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The pharmacy operator reported $1.09 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.09. The company had revenue of $105.69 billion during the quarter, compared to analyst estimates of $103.67 billion. CVS Health had a net margin of 0.44% and a return on equity of 11.31%. The firm's revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.19 earnings per share. CVS Health has set its FY 2026 guidance at 5.940-6.140 EPS. On average, research analysts expect that CVS Health Corporation will post 7.14 EPS for the current year.

CVS Health Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, May 4th. Investors of record on Thursday, April 23rd will be given a dividend of $0.665 per share. The ex-dividend date is Thursday, April 23rd. This represents a $2.66 annualized dividend and a yield of 3.2%. CVS Health's dividend payout ratio is presently 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.

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