Swedbank AB Increases Stake in CVS Health Corporation $CVS

Key Points

• Swedbank AB increased its CVS Health stake by 1.1% in the fourth quarter, ending with 2.27 million shares valued at about $180.4 million. Institutional ownership remains high, with hedge funds and other investors holding more than 80% of the stock.
• Analysts remain broadly bullish on CVS, with firms like Bernstein, Mizuho, Barclays, and Argus raising price targets and several reiterating buy/outperform ratings. The consensus view is a Moderate Buy with an average price target of $98.68.
• CVS faces ongoing legal pressure over the 340B drug program, including a lawsuit from major hospital systems alleging it siphoned about $250 million in reimbursements. At the same time, insider selling—especially by Director Larry Robbins—has been notable and may weigh on sentiment.

Swedbank AB boosted its position in shares of CVS Health Corporation (NYSE:CVS - Free Report) by 1.1% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 2,272,773 shares of the pharmacy operator's stock after purchasing an additional 23,989 shares during the quarter. Swedbank AB owned about 0.18% of CVS Health worth $180,367,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of CVS. Sei Investments Co. grew its position in CVS Health by 17.4% during the 2nd quarter. Sei Investments Co. now owns 905,715 shares of the pharmacy operator's stock valued at $62,474,000 after purchasing an additional 134,535 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in CVS Health by 1.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,121,377 shares of the pharmacy operator's stock valued at $77,353,000 after acquiring an additional 13,329 shares during the period. Treasurer of the State of North Carolina lifted its stake in CVS Health by 1.3% during the 2nd quarter. Treasurer of the State of North Carolina now owns 585,073 shares of the pharmacy operator's stock valued at $40,358,000 after acquiring an additional 7,588 shares during the period. HUB Investment Partners LLC lifted its stake in CVS Health by 25.0% during the 2nd quarter. HUB Investment Partners LLC now owns 15,063 shares of the pharmacy operator's stock valued at $1,039,000 after acquiring an additional 3,011 shares during the period. Finally, Alliancebernstein L.P. lifted its stake in CVS Health by 8.0% during the 2nd quarter. Alliancebernstein L.P. now owns 1,609,404 shares of the pharmacy operator's stock valued at $111,017,000 after acquiring an additional 119,439 shares during the period. 80.66% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting CVS Health

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

Insider Buying and Selling

In related news, Director Larry Robbins sold 370,462 shares of the firm's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $93.45, for a total value of $34,619,673.90. Following the completion of the transaction, the director directly owned 4,824,799 shares of the company's stock, valued at approximately $450,877,466.55. This trade represents a 7.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Tilak Mandadi sold 69,551 shares of the firm's 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 transaction, the executive vice president directly owned 10,133 shares of the company's stock, valued at approximately $907,714.14. This trade represents a 87.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 3,441,551 shares of company stock valued at $323,703,977. Insiders own 0.85% of the company's stock.

CVS Health Trading Down 0.1%

Shares of CVS opened at $93.24 on Friday. The company has a debt-to-equity ratio of 0.78, a current ratio of 0.87 and a quick ratio of 0.66. CVS Health Corporation has a 1 year low of $58.50 and a 1 year high of $98.43. The company has a 50 day simple moving average of $80.38 and a two-hundred day simple moving average of $79.08. The firm has a market cap of $118.97 billion, a P/E 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 announced its quarterly earnings data on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.21 by $0.36. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The business had revenue of $100.43 billion during the quarter, compared to analyst estimates of $94.99 billion. During the same period last year, the firm posted $2.25 EPS. The company'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. On average, equities analysts expect that CVS Health Corporation will post 7.44 earnings per share for the current fiscal year.

CVS Health Announces Dividend

The business also recently disclosed 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 dividend payout ratio (DPR) is 117.18%.

Analysts Set New Price Targets

Several research firms have issued reports on CVS. Mizuho upped their target price on shares of CVS Health from $102.00 to $110.00 and gave the company an "outperform" rating in a research note on Wednesday. Robert W. Baird upped 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. Barclays increased their price objective on shares of CVS Health from $93.00 to $101.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Argus increased their price objective on shares of CVS Health from $90.00 to $104.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Finally, Sanford C. Bernstein increased their price objective on shares of CVS Health from $94.00 to $106.00 and gave the stock an "outperform" 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 assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $98.68.

About CVS Health

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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