Investors Buy Large Volume of CVS Health Call Options (NYSE:CVS)

Key Points

• CVS Health experienced a significant increase in options trading activity, with investors purchasing 54,642 call options, marking a 64% rise compared to typical volumes.
• The company reported earnings per share of $1.81 for the last quarter, exceeding analyst expectations and showing an 8.4% year-over-year revenue growth.
• CVS Health declared a quarterly dividend of $0.665 per share, representing an annualized yield of 4.23%, with the ex-dividend date set for July 22nd.

CVS Health Corporation (NYSE:CVS - Get Free Report) saw unusually large options trading activity on Thursday. Investors bought 54,642 call options on the stock. This is an increase of approximately 64% compared to the typical volume of 33,374 call options.

CVS Health Trading Up 0.8%

CVS traded up $0.53 during trading hours on Thursday, reaching $62.83. 19,692,281 shares of the company's stock traded hands, compared to its average volume of 10,112,302. The firm has a 50-day moving average price of $64.48 and a 200 day moving average price of $63.70. CVS Health has a 52-week low of $43.56 and a 52-week high of $72.51. The company has a quick ratio of 0.63, a current ratio of 0.82 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $79.48 billion, a PE ratio of 14.99, a PEG ratio of 0.86 and a beta of 0.57.

CVS Health (NYSE:CVS - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The pharmacy operator reported $1.81 earnings per share for the quarter, topping analysts' consensus estimates of $1.46 by $0.35. The firm had revenue of $98.92 billion during the quarter, compared to analysts' expectations of $94.87 billion. CVS Health had a return on equity of 10.59% and a net margin of 1.39%. The firm's quarterly revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.83 EPS. As a group, sell-side analysts predict that CVS Health will post 5.89 EPS for the current fiscal year.

CVS Health Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 1st. Investors of record on Tuesday, July 22nd will be issued a dividend of $0.665 per share. This represents a $2.66 annualized dividend and a yield of 4.23%. The ex-dividend date is Tuesday, July 22nd. CVS Health's dividend payout ratio (DPR) is 63.48%.

Insider Activity at CVS Health

In other news, Director Guy P. Sansone bought 1,570 shares of the business's stock in a transaction that occurred on Thursday, June 5th. The shares were bought at an average cost of $63.70 per share, for a total transaction of $100,009.00. Following the acquisition, the director directly owned 12,007 shares in the company, valued at approximately $764,845.90. This trade represents a 15.04% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.22% of the stock is currently owned by company insiders.

Institutional Trading of CVS Health

Several hedge funds and other institutional investors have recently bought and sold shares of CVS. Whitebox Advisors LLC purchased a new position in shares of CVS Health in the fourth quarter valued at approximately $249,000. Jennison Associates LLC lifted its position in CVS Health by 503.8% during the first quarter. Jennison Associates LLC now owns 1,896,341 shares of the pharmacy operator's stock worth $128,477,000 after buying an additional 1,582,257 shares in the last quarter. Cerity Partners LLC lifted its position in CVS Health by 25.0% during the first quarter. Cerity Partners LLC now owns 648,266 shares of the pharmacy operator's stock worth $43,920,000 after buying an additional 129,535 shares in the last quarter. Bank of New York Mellon Corp lifted its position in CVS Health by 2.1% during the first quarter. Bank of New York Mellon Corp now owns 8,981,262 shares of the pharmacy operator's stock worth $608,481,000 after buying an additional 183,813 shares in the last quarter. Finally, Fairfax Financial Holdings Ltd. Can purchased a new position in CVS Health during the fourth quarter worth approximately $121,742,000. 80.66% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have recently commented on CVS shares. UBS Group lowered their target price on CVS Health from $71.00 to $67.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 22nd. Wall Street Zen upgraded CVS Health from a "hold" rating to a "buy" rating in a research note on Friday, May 9th. Morgan Stanley reiterated an "overweight" rating on shares of CVS Health in a research note on Tuesday, April 15th. Barclays set a $79.00 price objective on CVS Health and gave the company an "overweight" rating in a research note on Monday, June 2nd. Finally, Cowen restated a "buy" rating on shares of CVS Health in a research note on Monday, May 5th. Three research analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $74.67.

CVS Health Company Profile

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.

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