Leerink Partnrs Raises Earnings Estimates for CVS Health

Key Points

• Leerink Partners has raised its FY2025 earnings per share estimate for CVS Health to $6.39, up from a prior estimate of $6.18.
• CVS Health recently reported quarterly earnings of $1.81 per share, exceeding consensus estimates by $0.35, with revenue also surpassing expectations at $98.92 billion.
• The company declared a quarterly dividend of $0.665, representing an annualized dividend of $2.66 and a yield of 4.3%.

CVS Health Corporation (NYSE:CVS - Free Report) - Equities research analysts at Leerink Partnrs increased their FY2025 earnings per share estimates for shares of CVS Health in a report released on Thursday, July 31st. Leerink Partnrs analyst M. Cherny now anticipates that the pharmacy operator will earn $6.39 per share for the year, up from their prior estimate of $6.18. The consensus estimate for CVS Health's current full-year earnings is $5.89 per share. Leerink Partnrs also issued estimates for CVS Health's FY2026 earnings at $7.24 EPS, FY2027 earnings at $8.35 EPS and FY2028 earnings at $9.48 EPS.

CVS Health (NYSE:CVS - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The pharmacy operator reported $1.81 EPS for the quarter, topping the consensus estimate of $1.46 by $0.35. The firm had revenue of $98.92 billion during the quarter, compared to the consensus estimate of $94.87 billion. CVS Health had a return on equity of 10.51% and a net margin of 1.17%. The company's quarterly revenue was up 8.4% compared to the same quarter last year. During the same period in the prior year, the business posted $1.83 earnings per share.

A number of other analysts have also commented on the company. Cowen reiterated a "buy" rating on shares of CVS Health in a report on Monday, May 5th. Royal Bank Of Canada lifted their price target on CVS Health from $74.00 to $81.00 and gave the stock an "outperform" rating in a report on Monday, May 5th. Mizuho lifted their price target on CVS Health from $70.00 to $76.00 and gave the stock an "outperform" rating in a report on Wednesday, April 9th. Bernstein Bank decreased their target price on CVS Health from $78.00 to $72.00 and set a "market perform" rating for the company in a research report on Wednesday, July 16th. Finally, Jefferies Financial Group raised their target price on CVS Health from $74.00 to $80.00 and gave the stock a "buy" rating in a research report on Monday, June 30th. Three equities research analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $75.11.

CVS Health Stock Performance

Shares of CVS Health stock opened at $62.52 on Monday. The business's fifty day simple moving average is $64.56 and its 200 day simple moving average is $64.01. The firm has a market capitalization of $79.30 billion, a P/E ratio of 17.46, a price-to-earnings-growth ratio of 0.86 and a beta of 0.58. CVS Health has a 12 month low of $43.56 and a 12 month high of $72.51. The company has a current ratio of 0.80, a quick ratio of 0.62 and a debt-to-equity ratio of 0.74.

Institutional Investors Weigh In On CVS Health

Several large investors have recently added to or reduced their stakes in CVS. Avion Wealth boosted its stake in CVS Health by 99.0% during the second quarter. Avion Wealth now owns 380 shares of the pharmacy operator's stock valued at $26,000 after buying an additional 189 shares during the period. Harbor Asset Planning Inc. bought a new stake in CVS Health during the second quarter valued at $30,000. Bell Investment Advisors Inc boosted its stake in CVS Health by 119.8% during the first quarter. Bell Investment Advisors Inc now owns 455 shares of the pharmacy operator's stock valued at $31,000 after buying an additional 248 shares during the period. McIlrath & Eck LLC boosted its stake in CVS Health by 32.6% during the fourth quarter. McIlrath & Eck LLC now owns 707 shares of the pharmacy operator's stock valued at $32,000 after buying an additional 174 shares during the period. Finally, Roxbury Financial LLC boosted its stake in CVS Health by 78.3% during the second quarter. Roxbury Financial LLC now owns 460 shares of the pharmacy operator's stock valued at $32,000 after buying an additional 202 shares during the period. Institutional investors own 80.66% of the company's stock.

Insider Activity at CVS Health

In related news, Director Guy P. Sansone purchased 1,570 shares of the business's stock in a transaction dated Thursday, June 5th. The stock was purchased at an average cost of $63.70 per share, with a total value of $100,009.00. Following the completion of the acquisition, the director directly owned 12,007 shares of the company's stock, valued at approximately $764,845.90. The trade was a 15.04% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. 1.22% of the stock is owned by insiders.

CVS Health Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Tuesday, July 22nd were issued a $0.665 dividend. This represents a $2.66 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend was Tuesday, July 22nd. CVS Health's dividend payout ratio (DPR) is presently 74.30%.

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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