Principal Financial Group Inc. Increases Stake in CVS Health Corporation $CVS

Key Points

• Principal Financial Group raised its stake in CVS by 3.2% to 1,423,131 shares (about 0.11% ownership), valued at roughly $112.94 million at quarter-end.
• CVS beat Q1 expectations and boosted FY2026 guidance, reporting adjusted EPS $2.57 (vs. $2.21 est.) and $100.4B revenue, raising FY2026 EPS guidance to $7.30–7.50 — news that drove a ~7.7% stock rally and left analysts with a "Moderate Buy" consensus and a $94.61 price target.

Principal Financial Group Inc. lifted its stake in shares of CVS Health Corporation (NYSE:CVS - Free Report) by 3.2% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,423,131 shares of the pharmacy operator's stock after buying an additional 44,335 shares during the quarter. Principal Financial Group Inc. owned approximately 0.11% of CVS Health worth $112,940,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Alteri Wealth LLC increased its position in shares of CVS Health by 3.2% in the 3rd quarter. Alteri Wealth LLC now owns 4,195 shares of the pharmacy operator's stock valued at $316,000 after purchasing an additional 131 shares during the last quarter. TOWER TRUST & INVESTMENT Co lifted its position in shares of CVS Health by 0.8% during the 4th quarter. TOWER TRUST & INVESTMENT Co now owns 15,708 shares of the pharmacy operator's stock worth $1,247,000 after purchasing an additional 132 shares during the last quarter. Holistic Financial Partners grew its stake in shares of CVS Health by 4.1% during the third quarter. Holistic Financial Partners now owns 3,397 shares of the pharmacy operator's stock worth $256,000 after purchasing an additional 133 shares in the last quarter. CYBER HORNET ETFs LLC increased its holdings in CVS Health by 4.1% in the third quarter. CYBER HORNET ETFs LLC now owns 3,442 shares of the pharmacy operator's stock valued at $259,000 after buying an additional 134 shares during the last quarter. Finally, LS Investment Advisors LLC raised its stake in CVS Health by 3.9% in the fourth quarter. LS Investment Advisors LLC now owns 3,575 shares of the pharmacy operator's stock valued at $284,000 after buying an additional 135 shares in the last quarter. Institutional investors and hedge funds own 80.66% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Sanford C. Bernstein raised CVS Health from a "market perform" rating to an "outperform" rating and upped their price objective for the stock from $91.00 to $94.00 in a research report on Thursday, March 12th. HSBC boosted their target price on CVS Health from $83.00 to $85.00 and gave the stock a "hold" rating in a research note on Tuesday. The Goldman Sachs Group increased their price target on shares of CVS Health from $95.00 to $97.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. Bank of America reduced their price objective on shares of CVS Health from $100.00 to $95.00 and set a "buy" rating for the company in a research report on Tuesday, January 27th. Finally, Piper Sandler lowered their target price on shares of CVS Health from $101.00 to $99.00 and set an "overweight" rating for the company in a report on Tuesday, March 31st. Twenty research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, CVS Health currently has an average rating of "Moderate Buy" and a consensus price target of $94.61.

More CVS Health News

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

• Positive Sentiment: Q1 beat and guidance raise — CVS reported adjusted EPS $2.57 vs. $2.21 expected, revenue $100.4B vs. ~$95B expected, and raised FY2026 adjusted EPS guidance to $7.30–7.50 (above street). Management cited improved medical cost controls at Aetna and stronger pharmacy/benefits performance, which explains the rally. PR Newswire: CVS first-quarter results
• Positive Sentiment: Improved insurance margins — Aetna reported a materially lower medical benefit ratio (~84.6% vs. 87.3% year-ago), helping margins and cash-flow outlook, a key driver of the upside in the stock. Reuters: CVS raises 2026 forecast
• Positive Sentiment: Cost control via formulary changes — CVS Caremark will prefer interchangeable biosimilars over some branded drugs (effective July 1), which should lower drug spend for clients and help pharmacy margins over time. PR Newswire: CVS Caremark biosimilar adoption
• Neutral Sentiment: Analyst and market context — HSBC nudged its price target slightly higher to $85 (hold), a modest validation but not a major catalyst. Macro beats (private payrolls) and calmer geopolitical headlines helped broader market sentiment. MarketScreener: HSBC raises PT Zacks: Private payrolls up
• Negative Sentiment: Formulary changes could trigger pushback — preferring biosimilars and dropping J&J’s Stelara from main formularies may prompt manufacturer, provider or political pushback and legal scrutiny, which could create noise or revenue disruption in specific categories. Reuters: CVS drops Stelara

CVS Health Trading Up 7.7%

NYSE:CVS opened at $86.89 on Thursday. The company has a market capitalization of $111.35 billion, a PE ratio of 62.96, a P/E/G ratio of 0.84 and a beta of 0.60. CVS Health Corporation has a 52-week low of $58.35 and a 52-week high of $88.63. The stock's 50 day moving average price is $76.60 and its 200 day moving average price is $78.00. The company has a quick ratio of 0.63, a current ratio of 0.84 and a debt-to-equity ratio of 0.80.

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 for the quarter, beating the consensus estimate of $2.21 by $0.36. The business had revenue of $100.43 billion during the quarter, compared to the consensus estimate of $94.99 billion. CVS Health had a return on equity of 11.31% and a net margin of 0.44%.The company's revenue was up 6.2% compared to the same quarter last year. During the same period in the prior year, the company earned $2.25 earnings per share. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. On average, research analysts anticipate that CVS Health Corporation will post 7.14 EPS for the current year.

CVS Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, May 4th. Shareholders of record on Thursday, April 23rd were given a dividend of $0.665 per share. This represents a $2.66 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Thursday, April 23rd. CVS Health's dividend payout ratio (DPR) is presently 192.75%.

CVS Health Company 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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