Sumitomo Mitsui Trust Group Inc. Sells 58,275 Shares of CVS Health Corporation $CVS

Key Points

• Sumitomo Mitsui Trust Group reduced its CVS Health stake by 2.0%, selling 58,275 shares and retaining 2.83 million shares valued at approximately $242.6 million. Institutional investors collectively own 80.66% of CVS.
• CVS reported strong quarterly results, with EPS of $2.58 versus the $1.87 consensus estimate and revenue of $106.1 billion. Analysts maintain a Moderate Buy consensus, with an average price target of $109.64.
• Key risks include lawsuits from hospital systems alleging fraud or contract breaches and potential Medicare Advantage star-rating impacts that could expose CVS to as much as $2 billion in risk.

Sumitomo Mitsui Trust Group Inc. decreased its holdings in CVS Health Corporation (NYSE:CVS - Free Report) by 2.0% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 2,830,609 shares of the pharmacy operator's stock after selling 58,275 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned 0.22% of CVS Health worth $242,555,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in CVS. Handelsbanken Fonder AB raised its stake in CVS Health by 83.6% in the second quarter. Handelsbanken Fonder AB now owns 1,089,694 shares of the pharmacy operator's stock valued at $112,729,000 after buying an additional 496,124 shares in the last quarter. BNP Paribas boosted its position in shares of CVS Health by 105.2% during the 2nd quarter. BNP Paribas now owns 49,971 shares of the pharmacy operator's stock worth $5,154,000 after acquiring an additional 25,617 shares in the last quarter. Nykredit A S acquired a new position in shares of CVS Health during the 2nd quarter worth about $209,813,000. Bank of America Corp DE increased its holdings in shares of CVS Health by 148.0% in the 2nd quarter. Bank of America Corp DE now owns 23,188,670 shares of the pharmacy operator's stock valued at $2,398,868,000 after acquiring an additional 13,836,701 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. purchased a new position in shares of CVS Health in the 2nd quarter valued at about $49,622,000. Institutional investors and hedge funds own 80.66% of the company's stock.

CVS Health News Roundup

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

• Positive Sentiment: One valuation analysis says CVS could be approximately 27% undervalued, with the next earnings report providing a potential catalyst. Analysts reportedly expect quarterly earnings of about $1.62 per share, making segment performance and management commentary important for the shares. CVS Health Could Be 27% Undervalued As Earnings Focus Sharpens
• Positive Sentiment: CVS’s free Project Health screenings, which do not require appointments or insurance, support the company’s community-health strategy and could strengthen patient engagement and brand visibility. The immediate financial impact is likely limited. CVS Health Project Health Screenings
• Neutral Sentiment: Articles highlight CVS’s broader strategy of combining healthcare services with housing and other social-support initiatives. The approach may improve long-term outcomes and customer retention, but near-term earnings effects are unclear. CVS Health Beyond Housing
• Neutral Sentiment: Analyst-estimate and ratings coverage provides context ahead of earnings but does not identify a clear change in consensus or a new company-specific catalyst. CVS Health Stock Analyst Estimates and Ratings
• Negative Sentiment: The University of Kentucky and five other hospital systems are suing CVS over alleged fraud or prescription-contract breaches. The claims, including a reported $41 million UK lawsuit, create litigation, reimbursement, and reputational risks, although the allegations have not been proven. Hospital Systems Sue CVS UK Sues CVS Health
• Negative Sentiment: CVS reportedly faces as much as $2 billion of Medicare ratings-related risk. Any reduction in Medicare Advantage star ratings could hurt bonus payments, membership economics, and expectations for future earnings. CVS Health Medicare Ratings Risk

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Wells Fargo & Company increased their target price on shares of CVS Health from $103.00 to $123.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. Truist Financial upped 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. Wall Street Zen lowered CVS Health from a "strong-buy" rating to a "buy" rating in a report on Monday, October 19th. Leerink Partners dropped their price objective on CVS Health from $119.00 to $112.00 and set an "outperform" rating on the stock in a report on Monday, October 12th. Finally, UBS Group reiterated a "buy" rating on shares of CVS Health in a research report on Tuesday, September 22nd. Nineteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, CVS Health presently has a consensus rating of "Moderate Buy" and an average price target of $109.64.

CVS Health Stock Performance

Shares of CVS stock opened at $90.20 on Monday. The stock has a fifty day moving average price of $91.22 and a 200 day moving average price of $88.76. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87. The stock has a market cap of $115.36 billion, a PE ratio of 23.86, a P/E/G ratio of 0.84 and a beta of 0.58. CVS Health Corporation has a 1 year low of $69.51 and a 1 year high of $110.68.

CVS Health (NYSE:CVS - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $0.71. The firm had revenue of $106.10 billion during the quarter, compared to the consensus estimate of $100.03 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%. The company's quarterly revenue was up 7.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.81 EPS. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Sell-side analysts forecast that CVS Health Corporation will post 8.02 earnings per share for the current fiscal year.

CVS Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd will be paid a dividend of $0.6650 per share. This represents a $2.66 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Thursday, October 22nd. CVS Health's dividend payout ratio is 70.37%.

CVS Health Company Profile

CVS Health Corporation NYSE: CVS is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company's Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.

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