Simplify Asset Management Inc. Has $5.88 Million Stock Holdings in CVS Health Corporation $CVS

Key Points

• Simplify Asset Management reduced its CVS Health stake by 12.7% in the fourth quarter, selling 10,802 shares and ending with 74,124 shares valued at about $5.88 million.
• CVS reported stronger-than-expected quarterly results, with EPS of $2.57 and revenue of $100.43 billion, while also guiding FY 2026 EPS to $7.30-$7.50.
• Despite upbeat analyst sentiment, CVS faces some pressure from insider stock sales and a growing 340B lawsuit risk involving hospitals alleging the company siphoned about $250 million from the drug program.

Simplify Asset Management Inc. cut its position in shares of CVS Health Corporation (NYSE:CVS - Free Report) by 12.7% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 74,124 shares of the pharmacy operator's stock after selling 10,802 shares during the quarter. Simplify Asset Management Inc.'s holdings in CVS Health were worth $5,882,000 at the end of the most recent quarter.

A number of other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in CVS Health by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 120,709,530 shares of the pharmacy operator's stock worth $9,579,508,000 after buying an additional 1,824,424 shares in the last quarter. Capital World Investors grew its position in CVS Health by 2.1% during the third quarter. Capital World Investors now owns 68,382,158 shares of the pharmacy operator's stock worth $5,155,380,000 after buying an additional 1,419,575 shares in the last quarter. State Street Corp grew its position in CVS Health by 0.3% during the third quarter. State Street Corp now owns 58,938,286 shares of the pharmacy operator's stock worth $4,443,357,000 after buying an additional 149,701 shares in the last quarter. Capital International Investors grew its position in CVS Health by 1.1% during the third quarter. Capital International Investors now owns 26,692,203 shares of the pharmacy operator's stock worth $2,012,347,000 after buying an additional 302,499 shares in the last quarter. Finally, Invesco Ltd. grew its position in CVS Health by 3.2% during the third quarter. Invesco Ltd. now owns 24,293,058 shares of the pharmacy operator's stock worth $1,831,454,000 after buying an additional 760,579 shares in the last quarter. 80.66% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other CVS Health news, EVP Tilak Mandadi sold 69,551 shares of CVS Health stock in a transaction on Friday, May 8th. The shares were sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the completion of the sale, the executive vice president owned 10,133 shares of the company's stock, valued at approximately $907,714.14. The trade was a 87.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Larry Robbins sold 370,462 shares of CVS Health stock in a transaction 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 sale, the director directly owned 4,824,799 shares of the company's stock, valued at $450,877,466.55. This represents a 7.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,441,551 shares of company stock valued at $323,703,977 in the last ninety days. Company insiders own 0.85% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Bank of America cut their price target on shares of CVS Health from $100.00 to $95.00 and set a "buy" rating for the company in a research note on Tuesday, January 27th. Barclays lifted their target price on shares of CVS Health from $93.00 to $101.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Robert W. Baird lifted their target price on shares of CVS Health from $92.00 to $94.00 and gave the company an "outperform" rating in a research note on Wednesday, April 15th. Wolfe Research cut their target price on shares of CVS Health from $100.00 to $97.00 and set an "outperform" rating for the company in a research note on Monday, March 2nd. Finally, JPMorgan Chase & Co. lifted their target price on shares of CVS Health from $101.00 to $111.00 and gave the company an "overweight" rating in a research note on Tuesday, May 12th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $98.68.

CVS Health Stock Performance

CVS stock opened at $93.24 on Monday. The company has a debt-to-equity ratio of 0.78, a current ratio of 0.87 and a quick ratio of 0.66. The company has a 50 day moving average price of $80.38 and a 200 day moving average price of $79.09. CVS Health Corporation has a fifty-two week low of $58.50 and a fifty-two week high of $98.43. The stock has a market capitalization of $118.97 billion, a PE ratio of 41.08, a price-to-earnings-growth ratio of 0.91 and a beta of 0.60.

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, 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 during the quarter, compared to analysts' expectations of $94.99 billion. During the same quarter in the previous year, the company posted $2.25 EPS. CVS Health's 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. Analysts forecast that CVS Health Corporation will post 7.44 EPS for the current year.

CVS Health Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, May 4th. Shareholders of record on Thursday, April 23rd were issued a dividend of $0.665 per share. This represents a $2.66 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Thursday, April 23rd. CVS Health's payout ratio is currently 117.18%.

CVS Health News Summary

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

• Positive Sentiment: Bernstein reiterated an Outperform rating and raised its price target on CVS to $106, saying the company is well positioned for a Medicare Advantage turnaround. Bernstein Sees CVS Well Positioned for Medicare Advantage Turnaround
• Positive Sentiment: Glenview Capital said CVS has delivered about an 80% total return since May 2024, reinforcing confidence in the company’s operational turnaround and long-term investment case. Glenview Capital Issues Statement on CVS Health
• Neutral Sentiment: CVS announced a collaboration with America250 to support the nation’s 250th anniversary celebration, a brand-building move that is unlikely to have a major near-term effect on earnings. CVS Health Collaborates With America250 To Support the Nation's 250th Anniversary Celebration
• Neutral Sentiment: Recent community and philanthropic announcements, including support for military families and senior housing, add to CVS’s public-facing story but are not likely to move the shares materially on their own. CVS Health, Diocese of Camden, and The Walters Group Unite to Bring Senior Affordable Housing to Williamstown, New Jersey
• Negative Sentiment: Three major hospital systems, including affiliates tied to Mount Sinai, the University of Michigan, and the University of Kansas, sued CVS, alleging it siphoned about $250 million from the 340B drug program through reduced reimbursements. Hospitals sue CVS for allegedly siphoning $250M in 340B funds
• Negative Sentiment: Separate reports say hospital systems are expanding the 340B dispute, raising the risk of more litigation, settlement costs, and reputational pressure for CVS’s pharmacy-benefit operations. CVS Health Lawsuits Test 340B Practices And Investor Risk Assessment
• Negative Sentiment: Director Larry Robbins disclosed several large stock sales over the past few days, including a roughly $187 million sale, which can weigh on investor sentiment even though he still owns a large stake. SEC Form 4 filing

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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