Investors Purchase High Volume of Call Options on CVS Health (NYSE:CVS)

Key Points

• Investors showed unusual bullish options activity in CVS Health, buying 35,379 call options on Monday — about 79% above normal volume.
• CVS shares rose to $101.62, near their 52-week high of $103.12, after the company reported stronger-than-expected quarterly results with EPS of $2.57 and revenue of $100.43 billion.
• Sentiment has also been helped by positive business developments and analyst support, including CVS’s expanded GLP-1 support program and multiple analysts maintaining Buy/Overweight ratings.

CVS Health Corporation (NYSE:CVS - Get Free Report) saw some unusual options trading on Monday. Stock investors acquired 35,379 call options on the stock. This represents an increase of 79% compared to the typical volume of 19,814 call options.

Insider Activity at CVS Health

In related news, EVP Tilak Mandadi sold 69,551 shares of the business's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the transaction, the executive vice president owned 10,133 shares in the company, valued at $907,714.14. The trade was a 87.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Larry Robbins sold 1,983,538 shares of the company's stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $94.45, for a total transaction of $187,345,164.10. Following the completion of the transaction, the director owned 6,213,261 shares of the company's stock, valued at $586,842,501.45. This trade represents a 24.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 3,441,551 shares of company stock worth $323,703,977 in the last 90 days. Company insiders own 0.85% of the company's stock.

Hedge Funds Weigh In On CVS Health

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Swiss RE Ltd. purchased a new stake in shares of CVS Health in the fourth quarter valued at about $26,000. Sankala Group LLC acquired a new position in CVS Health in the 4th quarter valued at about $28,000. Caitong International Asset Management Co. Ltd raised its stake in CVS Health by 407.2% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator's stock valued at $26,000 after acquiring an additional 281 shares during the last quarter. Mcguire Capital Advisors Inc. purchased a new stake in CVS Health during the 4th quarter valued at approximately $28,000. Finally, Ares Financial Consulting LLC acquired a new stake in CVS Health during the 4th quarter worth approximately $29,000. Hedge funds and other institutional investors own 80.66% of the company's stock.

CVS Health Stock Performance

Shares of NYSE:CVS traded up $3.30 during midday trading on Monday, reaching $101.62. The company's stock had a trading volume of 9,442,452 shares, compared to its average volume of 8,650,731. The firm has a market capitalization of $129.66 billion, a PE ratio of 44.77, a P/E/G ratio of 0.96 and a beta of 0.62. CVS Health has a twelve month low of $58.50 and a twelve month high of $103.12. The stock has a fifty day moving average of $89.31 and a 200 day moving average of $81.50. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.78.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings results 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 the consensus estimate of $94.99 billion. During the same quarter in the prior year, the firm earned $2.25 EPS. The company's revenue for the quarter 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 will post 7.44 EPS for the current fiscal year.

Trending Headlines about CVS Health

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

• Positive Sentiment: CVS announced an expanded GLP-1 support program across its pharmacy and MinuteClinic network, including lower-cost access, pharmacist guidance, over-the-counter side-effect support, and virtual weight-management visits. The move could improve patient retention and drive more traffic through CVS’s retail and care channels. Article: CVS Pharmacy® expands GLP‑1 support to lower costs, improve access, and help patients stay on therapy
• Positive Sentiment: MarketWatch and Yahoo Finance highlighted the GLP-1 expansion as a notable business development, reinforcing the view that CVS is positioning itself to benefit from strong demand for weight-loss medications. Article: CVS Health Expands GLP-1 Support for Patients
• Positive Sentiment: Unusual options activity showed investors buying far more call options than usual, suggesting rising bullish speculation on CVS shares.
• Positive Sentiment: Recent coverage from Zacks and MSN describing CVS as a top momentum stock may be adding to the stock’s positive sentiment and attracting additional buyers. Article: Why CVS Health (CVS) is a Top Momentum Stock for the Long-Term
• Neutral Sentiment: CVS also promoted soccer-themed community events and in-store activations, which help brand visibility but are unlikely to be a major stock driver. Article: CVS Continues To Celebrate Soccer With Community Events
• Neutral Sentiment: Wall Street Zen’s upgrade to Buy is supportive, but it appears to be a smaller contributor compared with the GLP-1 announcement. Article: CVS Health NYSE: CVS Upgraded to Buy at Wall Street Zen

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company lifted their price objective on shares of CVS Health from $102.00 to $103.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Wolfe Research lowered their target price on CVS Health from $100.00 to $97.00 and set an "outperform" rating for the company in a research report on Monday, March 2nd. TD Cowen upped their price target on shares of CVS Health from $105.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, May 11th. Bank of America reiterated a "buy" rating on shares of CVS Health in a research report on Monday. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of CVS Health in a report on Thursday, June 11th. Twenty-two 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, CVS Health currently has a consensus rating of "Moderate Buy" and a consensus target price of $100.68.

CVS Health Company 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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