LGT Fund Management Co Ltd. Makes New Investment in CVS Health Corporation $CVS

Key Points

• LGT Fund Management Co Ltd. opened a new position in CVS Health, buying 50,850 shares valued at about $3.65 million in the first quarter.
• CVS recently raised its quarterly dividend to $0.665 per share, which points to continued confidence in cash generation and shareholder returns.
• The company is also dealing with a legal overhang, including a $440 million DOJ settlement over improper billing allegations and a separate $36.5 million Medicaid insulin claims settlement.

LGT Fund Management Co Ltd. purchased a new position in shares of CVS Health Corporation (NYSE:CVS - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 50,850 shares of the pharmacy operator's stock, valued at approximately $3,652,000.

Other large investors also recently modified their holdings of the company. Caitong International Asset Management Co. Ltd lifted its position in shares of CVS Health by 407.2% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator's stock valued at $26,000 after acquiring an additional 281 shares during the period. Swiss RE Ltd. acquired a new stake in CVS Health in the fourth quarter worth $26,000. Sankala Group LLC bought a new stake in CVS Health in the fourth quarter valued at $28,000. Global Trust Asset Management LLC raised its holdings in shares of CVS Health by 344.8% during the first quarter. Global Trust Asset Management LLC now owns 387 shares of the pharmacy operator's stock valued at $28,000 after purchasing an additional 300 shares during the period. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of CVS Health during the 4th quarter worth about $28,000. Institutional investors and hedge funds 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: CVS Health declared a quarterly dividend of $0.665 per share, reinforcing its shareholder-return policy and signaling management confidence in cash generation. CVS Health declares quarterly dividend
• Positive Sentiment: Coverage around CVS highlighted the company as a likely beneficiary of managed-care consolidation, with commentary that Aetna is handling medical costs and that CVS is well positioned as Walgreens weakens. Cramer’s Stop Trading: CVS Health
• Neutral Sentiment: A CVS executive, Ali Keshavarz, was appointed to the board of Choice Hotels; this is notable for the executive’s profile but does not appear to have a direct operational impact on CVS. Choice Hotels (CHH) Appoints CVS Data Chief To Board As Index Changes Hit
• Negative Sentiment: CVS and Omnicare agreed to a $440 million settlement with the U.S. Department of Justice to resolve improper billing allegations, which creates a large one-time legal cost and keeps regulatory pressure on the company. CVS, Omnicare ink $440M deal with DoJ to resolve improper billing case
• Negative Sentiment: CVS also settled a separate $36.5 million case tied to false Medicaid insulin claims, adding to the legal overhang and reinforcing concerns about compliance risks. CVS settles for $36.5M over false Medicaid insulin claims, Minnesota recovers $400K

Insider Activity

In related news, Director Larry Robbins sold 370,462 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $93.45, for a total transaction of $34,619,673.90. Following the completion of the sale, the director directly owned 4,824,799 shares of the company's stock, valued at approximately $450,877,466.55. This trade represents a 7.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Tilak Mandadi sold 69,551 shares of CVS Health stock in a transaction on Friday, May 8th. The stock was sold at an average price of $89.58, for a total value of $6,230,378.58. Following the sale, the executive vice president owned 10,133 shares in the company, valued at $907,714.14. This trade represents a 87.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 3,441,551 shares of company stock valued at $323,703,977. Company insiders own 0.85% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CVS. Bank of America upped their price target on CVS Health from $100.00 to $110.00 and gave the stock a "buy" rating in a research note on Monday, June 22nd. Barclays raised their price objective on CVS Health from $101.00 to $106.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Deutsche Bank Aktiengesellschaft upped their target price on CVS Health from $88.00 to $92.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. DA Davidson increased their target price on CVS Health from $80.00 to $100.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Finally, Argus lifted their price target on shares of CVS Health from $90.00 to $104.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. Twenty-one investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $102.84.

CVS Health Trading Down 0.0%

NYSE CVS opened at $104.15 on Monday. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.78. The business has a fifty day simple moving average of $96.91 and a 200 day simple moving average of $84.21. CVS Health Corporation has a 12 month low of $58.50 and a 12 month high of $106.15. The firm has a market capitalization of $132.88 billion, a P/E ratio of 45.88, a PEG ratio of 1.02 and a beta of 0.61.

CVS Health (NYSE:CVS - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.21 by $0.36. The firm had revenue of $100.43 billion for the quarter, compared to the consensus estimate of $94.99 billion. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The business's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.25 EPS. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. On average, analysts predict that CVS Health Corporation will post 7.44 EPS for the current fiscal year.

CVS Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd will be given a $0.665 dividend. This represents a $2.66 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Thursday, July 23rd. CVS Health's dividend payout ratio is presently 117.18%.

CVS Health Profile

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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