Legacy Financial Advisors Inc. Buys New Position in CVS Health Corporation $CVS

Key Points

• Legacy Financial Advisors Inc. has made a new investment of $260,000 in CVS Health Corporation, acquiring 3,843 shares of the company’s stock.
• CVS Health reported $1.81 earnings per share for its last quarter, surpassing analyst expectations of $1.46, and achieved a revenue of $98.92 billion.
• The company announced a quarterly dividend of $0.665 per share, reflecting a 3.8% dividend yield and a payout ratio of 74.30%.

Legacy Financial Advisors Inc. acquired a new position in shares of CVS Health Corporation (NYSE:CVS - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 3,843 shares of the pharmacy operator's stock, valued at approximately $260,000.

Other institutional investors have also modified their holdings of the company. Whitebox Advisors LLC acquired a new position in shares of CVS Health in the 4th quarter valued at $249,000. Jennison Associates LLC increased its holdings in shares of CVS Health by 503.8% in the 1st quarter. Jennison Associates LLC now owns 1,896,341 shares of the pharmacy operator's stock valued at $128,477,000 after acquiring an additional 1,582,257 shares during the period. Cerity Partners LLC increased its holdings in shares of CVS Health by 25.0% in the 1st quarter. Cerity Partners LLC now owns 648,266 shares of the pharmacy operator's stock valued at $43,920,000 after acquiring an additional 129,535 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of CVS Health by 2.1% in the 1st quarter. Bank of New York Mellon Corp now owns 8,981,262 shares of the pharmacy operator's stock valued at $608,481,000 after acquiring an additional 183,813 shares during the period. Finally, Fairfax Financial Holdings Ltd. Can acquired a new position in shares of CVS Health in the 4th quarter valued at $121,742,000. 80.66% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CVS. UBS Group raised shares of CVS Health from a "neutral" rating to a "buy" rating and lifted their target price for the company from $67.00 to $79.00 in a report on Monday, August 18th. Morgan Stanley lifted their price objective on shares of CVS Health from $80.00 to $82.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Royal Bank Of Canada lifted their price objective on shares of CVS Health from $74.00 to $81.00 and gave the company an "outperform" rating in a research report on Monday, May 5th. Truist Financial lifted their price objective on shares of CVS Health from $82.00 to $84.00 and gave the company a "buy" rating in a research report on Monday, May 12th. Finally, Wall Street Zen upgraded shares of CVS Health from a "hold" rating to a "buy" rating in a research report on Friday, May 9th. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $76.67.

CVS Health Price Performance

Shares of NYSE CVS traded down $0.2560 during trading on Friday, hitting $71.1740. 6,982,068 shares of the company were exchanged, compared to its average volume of 8,748,738. The company has a market cap of $90.27 billion, a price-to-earnings ratio of 19.88, a PEG ratio of 0.79 and a beta of 0.58. CVS Health Corporation has a 1 year low of $43.56 and a 1 year high of $72.51. The firm's fifty day moving average price is $65.50 and its 200 day moving average price is $65.18. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.80 and a quick ratio of 0.62.

CVS Health (NYSE:CVS - Get Free Report) last issued its earnings results on Thursday, July 31st. The pharmacy operator reported $1.81 EPS for the quarter, topping the consensus estimate of $1.46 by $0.35. The company had revenue of $98.92 billion for the quarter, compared to analyst estimates of $94.87 billion. CVS Health had a net margin of 1.17% and a return on equity of 10.51%. The business's revenue was up 8.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.83 EPS. CVS Health has set its FY 2025 guidance at 6.300-6.400 EPS. On average, sell-side analysts expect that CVS Health Corporation will post 5.89 earnings per share for the current fiscal year.

CVS Health Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Tuesday, July 22nd were paid a dividend of $0.665 per share. This represents a $2.66 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend was Tuesday, July 22nd. CVS Health's payout ratio is 74.30%.

Insider Activity

In other news, Director Guy P. Sansone purchased 1,570 shares of the business's stock in a transaction dated Thursday, June 5th. The stock was acquired at an average price of $63.70 per share, with a total value of $100,009.00. Following the purchase, the director directly owned 12,007 shares of the company's stock, valued at $764,845.90. This represents a 15.04% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.22% of the stock is owned by company insiders.

About CVS Health

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.