International Assets Investment Management LLC Buys 166,138 Shares of CVS Health Corporation $CVS

Key Points

• International Assets Investment Management LLC increased its CVS Health position by 1,198.5% in the third quarter, acquiring 166,138 additional shares for a total of 180,000 shares valued at approximately $15.4 million. Institutional investors collectively own 80.66% of CVS.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $109.64 versus the stock’s reported $90.20 price. CVS also recently exceeded earnings expectations and provides a 2.9% dividend yield.
• Despite potential undervaluation and strong investor interest, CVS faces risks including a possible $2 billion impact from Medicare Advantage star ratings and lawsuits alleging fraud or contract breaches with hospital systems.

International Assets Investment Management LLC raised its position in shares of CVS Health Corporation (NYSE:CVS - Free Report) by 1,198.5% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 180,000 shares of the pharmacy operator's stock after acquiring an additional 166,138 shares during the quarter. International Assets Investment Management LLC's holdings in CVS Health were worth $15,424,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. purchased a new position in shares of CVS Health in the 2nd quarter valued at approximately $12,747,462,000. State Street Corp boosted its position in shares of CVS Health by 26.3% during the second quarter. State Street Corp now owns 74,927,064 shares of the pharmacy operator's stock valued at $7,751,205,000 after purchasing an additional 15,604,883 shares in the last quarter. Bank of America Corp DE grew its stake in CVS Health by 148.0% in the second quarter. Bank of America Corp DE now owns 23,188,670 shares of the pharmacy operator's stock worth $2,398,868,000 after purchasing an additional 13,836,701 shares during the period. Pzena Investment Management LLC purchased a new stake in CVS Health in the second quarter worth $1,217,558,000. Finally, Wellington Management Group LLP grew its stake in CVS Health by 49.8% in the second quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator's stock worth $3,496,725,000 after purchasing an additional 11,233,381 shares during the period. Hedge funds and other institutional investors own 80.66% of the company's stock.

Key CVS Health News

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

• Positive Sentiment: One valuation analysis estimates that CVS could be approximately 27% undervalued, citing its low valuation and expectations that upcoming earnings will clarify performance across its pharmacy, insurance and healthcare-services businesses. CVS Health Could Be 27% Undervalued
• Positive Sentiment: CVS is promoting free Project Health screenings that require no appointment or insurance. Although primarily a community-health initiative, the program may support customer engagement and the company’s broader healthcare strategy. CVS Project Health Screenings
• Neutral Sentiment: Wall Street is reportedly expecting about $1.62 in third-quarter earnings per share, with analysts examining metrics beyond revenue and EPS, including segment trends and operating performance. The results could provide an important catalyst after CVS’s previous quarterly earnings beat. CVS Q3 Earnings Estimates
• Neutral Sentiment: CVS is highlighting medication-safety education and substance-misuse prevention resources. The initiative strengthens its public-health positioning but is unlikely to materially affect near-term earnings. CVS Medication Safety Initiative
• Negative Sentiment: CVS faces a reported risk of roughly $2 billion related to Medicare Advantage star ratings. Lower ratings could reduce bonus payments and pressure profitability in its insurance business. CVS Medicare Ratings Risk
• Negative Sentiment: Six hospital systems, including the University of Kentucky, reportedly accuse CVS of fraud or contract breaches, with the Kentucky lawsuit seeking $41 million. Even if the claims are unresolved, additional litigation raises potential legal costs and reputational risk. Hospital Systems Sue CVS

Analysts Set New Price Targets

CVS has been the subject of several recent research reports. Barclays raised their price objective on CVS Health from $106.00 to $108.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. JPMorgan Chase & Co. upped their target price on shares of CVS Health from $111.00 to $118.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Wall Street Zen lowered shares of CVS Health from a "strong-buy" rating to a "buy" rating in a research note on Monday, October 19th. Wells Fargo & Company lifted their price target on shares of CVS Health from $103.00 to $123.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. Finally, BMO Capital Markets set a $112.00 price target on shares of CVS Health in a research report on Wednesday, September 9th. Nineteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $109.64.

CVS Health Stock Down 0.1%

CVS stock opened at $90.20 on Friday. The business has a 50 day moving average of $91.22 and a 200 day moving average of $88.76. The firm has a market cap of $115.36 billion, a PE ratio of 23.86, a price-to-earnings-growth ratio of 0.84 and a beta of 0.60. CVS Health Corporation has a twelve month low of $69.51 and a twelve month high of $110.68. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.74.

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

CVS Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd will be given a $0.6650 dividend. This represents a $2.66 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Thursday, October 22nd. CVS Health's payout ratio is currently 70.37%.

CVS Health Company Profile

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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