Rock Springs Capital Management LP Acquires New Position in CVS Health Corporation $CVS

Key Points

• Rock Springs Capital Management acquired 40,000 CVS Health shares worth approximately $2.9 million, while institutional investors overall own 80.66% of the company.
• Analysts remain broadly positive, with 21 Buy ratings and three Holds producing a consensus “Moderate Buy” rating and an average price target of $105.67.
• CVS reported quarterly EPS of $2.57 and revenue of $100.43 billion, beating estimates; it also declared a quarterly dividend of $0.665 per share, yielding approximately 2.5% annually.

Rock Springs Capital Management LP acquired a new stake in CVS Health Corporation (NYSE:CVS - Free Report) during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 40,000 shares of the pharmacy operator's stock, valued at approximately $2,873,000.

Other institutional investors also recently modified their holdings of the company. State Street Corp increased its holdings in CVS Health by 2.1% in the fourth quarter. State Street Corp now owns 60,183,743 shares of the pharmacy operator's stock worth $4,776,182,000 after buying an additional 1,245,457 shares during the last quarter. Legal & General Group Plc lifted its stake in CVS Health by 0.3% in the fourth quarter. Legal & General Group Plc now owns 9,309,182 shares of the pharmacy operator's stock valued at $738,777,000 after acquiring an additional 31,249 shares during the last quarter. Deutsche Bank AG lifted its stake in CVS Health by 28.4% in the fourth quarter. Deutsche Bank AG now owns 4,666,495 shares of the pharmacy operator's stock valued at $370,333,000 after acquiring an additional 1,031,998 shares during the last quarter. KBC Group NV increased its stake in shares of CVS Health by 200.4% during the 4th quarter. KBC Group NV now owns 676,809 shares of the pharmacy operator's stock worth $53,711,000 after purchasing an additional 451,521 shares during the last quarter. Finally, Hussman Strategic Advisors Inc. bought a new position in shares of CVS Health during the 4th quarter valued at $3,333,000. Institutional investors and hedge funds own 80.66% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on CVS shares. Truist Financial lifted their price objective on shares of CVS Health from $108.00 to $118.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Royal Bank Of Canada increased their target price on shares of CVS Health from $107.00 to $113.00 and gave the stock an "outperform" rating in a research report on Thursday, July 9th. Sanford C. Bernstein raised their target price on CVS Health from $94.00 to $106.00 and gave the company an "outperform" rating in a report on Tuesday, May 12th. JPMorgan Chase & Co. boosted their price target on CVS Health from $101.00 to $111.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 12th. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on CVS Health from $88.00 to $92.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Twenty-one investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $105.67.

Insider Activity

In other news, EVP Tilak Mandadi sold 69,551 shares of the company's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the completion of the transaction, the executive vice president directly owned 10,133 shares in the company, valued at $907,714.14. The trade was a 87.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Larry Robbins sold 1,983,538 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $94.45, for a total value of $187,345,164.10. Following the completion of the sale, the director directly owned 6,213,261 shares of the company's stock, valued at $586,842,501.45. This represents a 24.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,441,551 shares of company stock valued at $323,703,977 in the last three months. 0.85% of the stock is owned by insiders.

CVS Health Price Performance

NYSE CVS opened at $107.05 on Tuesday. CVS Health Corporation has a 1 year low of $58.99 and a 1 year high of $110.68. The company has a fifty day simple moving average of $100.43 and a 200 day simple moving average of $86.35. 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 company has a market cap of $136.59 billion, a P/E ratio of 47.16, a P/E/G ratio of 1.05 and a beta of 0.61.

CVS Health (NYSE:CVS - Get Free Report) last announced its earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 EPS for the quarter, topping the consensus estimate of $2.21 by $0.36. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The firm had revenue of $100.43 billion for the quarter, compared to the consensus estimate of $94.99 billion. During the same quarter last year, the firm posted $2.25 EPS. The business's quarterly revenue was up 6.2% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. On average, sell-side analysts predict that CVS Health Corporation will post 7.46 EPS for the current year.

CVS Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Thursday, July 23rd will be given a dividend of $0.665 per share. This represents a $2.66 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Thursday, July 23rd. CVS Health's payout ratio is currently 117.18%.

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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