Swedbank AB Increases Holdings in CVS Health Corporation $CVS

Key Points

• Swedbank AB raised its CVS stake 1.1% to 2,272,773 shares (~$180.4M), and several large institutions (Wellington, Amundi, Capital Research, Arrowstreet) also boosted positions, leaving about 80.66% of the stock held by institutional investors.
• CVS beat estimates for the quarter (EPS $2.57 vs $2.21 est; revenue $100.43B vs $94.97B) and pays a quarterly dividend of $0.665 (3.3% yield), although its payout ratio is elevated at roughly 193%.
• Analyst sentiment is cautiously positive with a consensus "Moderate Buy" and $94.61 price target, while CVS's move to favor interchangeable biosimilars (dropping J&J’s Stelara on main formularies July 1) should lower drug spend and help PBM margins but may pressure branded drug revenue.

Swedbank AB increased its position in CVS Health Corporation (NYSE:CVS - Free Report) by 1.1% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,272,773 shares of the pharmacy operator's stock after buying an additional 23,989 shares during the quarter. Swedbank AB owned 0.18% of CVS Health worth $180,367,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also bought and sold shares of CVS. Wellington Management Group LLP lifted its holdings in shares of CVS Health by 391.6% in the 3rd quarter. Wellington Management Group LLP now owns 6,330,717 shares of the pharmacy operator's stock worth $477,273,000 after acquiring an additional 5,042,816 shares during the last quarter. Amundi raised its position in CVS Health by 95.3% in the 3rd quarter. Amundi now owns 7,453,980 shares of the pharmacy operator's stock worth $572,665,000 after purchasing an additional 3,637,943 shares during the period. Capital Research Global Investors raised its position in CVS Health by 24.5% in the 3rd quarter. Capital Research Global Investors now owns 11,469,250 shares of the pharmacy operator's stock worth $864,667,000 after purchasing an additional 2,253,531 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in CVS Health by 70.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,294,134 shares of the pharmacy operator's stock worth $399,125,000 after purchasing an additional 2,188,307 shares during the last quarter. Finally, Hamlin Capital Management LLC purchased a new stake in CVS Health during the fourth quarter valued at about $160,844,000. 80.66% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on CVS shares. Sanford C. Bernstein upgraded CVS Health from a "market perform" rating to an "outperform" rating and lifted their price objective for the stock from $91.00 to $94.00 in a report on Thursday, March 12th. Bank of America reduced their price target on CVS Health from $100.00 to $95.00 and set a "buy" rating on the stock in a research report on Tuesday, January 27th. Robert W. Baird boosted their price objective on CVS Health from $92.00 to $94.00 and gave the company an "outperform" rating in a research report on Wednesday, April 15th. The Goldman Sachs Group increased their price objective on CVS Health from $95.00 to $97.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. Finally, Argus decreased their target price on shares of CVS Health from $91.00 to $90.00 and set a "buy" rating on the stock in a research note on Wednesday, January 28th. 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, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $94.61.

Key Headlines Impacting CVS Health

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

• Positive Sentiment: CVS Caremark will expand adoption of lower‑cost biosimilars across its commercial formularies effective July 1, preferring interchangeable biosimilars over certain reference brands — a move that should lower drug spend for clients and improve PBM margins. PR Newswire: CVS Caremark Expands Biosimilar Adoption
• Positive Sentiment: CVS said it will prefer lower‑cost interchangeable biosimilars over J&J’s Stelara on its main formularies starting July 1 — a direct cost‑management step that can improve margins but may pressure revenues for affected brand drugs. Reuters: CVS to drop J&J's Stelara
• Positive Sentiment: HSBC raised its price target on CVS to $85 (hold), signaling modest analyst confidence in upside tied to the company’s earnings and cost actions. That provides some near‑term support for the stock. MarketScreener: HSBC adjusts price target on CVS
• Positive Sentiment: Media and commentators (including Jim Cramer) are expressing optimism that CVS will report a strong quarter, which can buoy sentiment into earnings. InsiderMonkey: Jim Cramer on CVS quarter
• Neutral Sentiment: Investor previews and analysts flag Q1 results and cost trends/margins as the main near‑term focus; outcomes on utilization and PBM pricing will determine stock direction after the print. MSN: CVS Q1 earnings preview
• Neutral Sentiment: Coverage notes investors are watching cost trends and margins closely in the upcoming earnings release; PBM results and medical cost trajectories will be key. Seeking Alpha: CVS earnings in focus
• Neutral Sentiment: Analysts/press point to two hurdles in the quarter (operational/cost execution and broader healthcare demand); Aetna’s strength in Medicare Advantage is a stabilizer but may not fully offset other pressures. Yahoo Finance: Two hurdles to clear
• Neutral Sentiment: CVS Health Ventures made a strategic investment in Fathom to accelerate autonomous coding — a longer‑term efficiency play that could reduce administrative costs across the enterprise. Yahoo Finance: Fathom secures investment
• Negative Sentiment: An opinion piece questions the CVS affiliation with Mass General Brigham — while the partnership could expand primary‑care access, it raises concerns about costs, care continuity and potential regulatory/competitive scrutiny that could complicate execution and investor sentiment. Boston Globe: CVS affiliation with Mass General Brigham
• Neutral Sentiment: Industry retail shakeups (reports of rivals closing stores) highlight tough store economics in some markets — an indirect signal that pharmacy/retail footprint optimization remains relevant for CVS strategy. TheStreet: Competitor store closures

CVS Health Stock Performance

NYSE:CVS opened at $80.67 on Wednesday. The company has a quick ratio of 0.63, a current ratio of 0.84 and a debt-to-equity ratio of 0.80. The firm's fifty day simple moving average is $76.40 and its 200 day simple moving average is $77.96. The stock has a market cap of $103.39 billion, a P/E ratio of 58.46, a price-to-earnings-growth ratio of 0.86 and a beta of 0.60. CVS Health Corporation has a twelve month low of $58.35 and a twelve month high of $85.15.

CVS Health (NYSE:CVS - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The pharmacy operator reported $2.57 EPS for the quarter, topping the consensus estimate of $2.21 by $0.36. The business had revenue of $100.43 billion during the quarter, compared to analyst estimates of $94.97 billion. CVS Health had a net margin of 0.44% and a return on equity of 11.31%. As a group, research analysts predict that CVS Health Corporation will post 7.14 EPS for the current year.

CVS Health Announces Dividend

The company 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 3.3%. The ex-dividend date of this dividend was Thursday, April 23rd. CVS Health's payout ratio is presently 192.75%.

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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