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

Key Points

• CVS Health saw unusually heavy bullish options activity: Traders purchased 51,620 call options, about 203% above the typical volume.
• Analysts remain broadly positive, with 20 Buy ratings and three Holds producing a consensus “Moderate Buy” rating and a $107.80 price target.
• CVS reported quarterly results above expectations, including $2.58 in adjusted EPS and $106.1 billion in revenue, while maintaining a $2.66 annual dividend yielding approximately 2.8%.

CVS Health Corporation (NYSE:CVS - Get Free Report) saw some unusual options trading on Thursday. Stock traders bought 51,620 call options on the company. This is an increase of approximately 203% compared to the typical volume of 17,056 call options.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on CVS shares. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $112.00 price target on shares of CVS Health in a research note on Wednesday, September 9th. Wells Fargo & Company raised their price objective on shares of CVS Health from $103.00 to $123.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. Piper Sandler set a $112.00 price objective on shares of CVS Health in a research note on Wednesday, September 9th. Robert W. Baird set a $107.00 price target on shares of CVS Health in a research report on Thursday, August 6th. Finally, Cantor Fitzgerald reissued a "neutral" rating on shares of CVS Health in a research note on Friday, October 9th. Twenty equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $107.80.

More CVS Health News

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

• Positive Sentiment: CVS is expanding access through smaller, pharmacy-focused store formats in underserved communities. The strategy is intended to align locations with prescription demand, improve operating efficiency and support pharmacy growth. How Small Pharmacy Expansion Will Impact CVS Health Investors
• Positive Sentiment: MinuteClinic opened three new Massachusetts locations, including the first in Boston, broadening CVS’s retail healthcare footprint and potentially increasing patient traffic and service revenue. MinuteClinic Opens Three New Retail Medical Clinics
• Positive Sentiment: CVS is seeking to capture customers from Walgreens and Rite Aid as competitors close stores. The opportunity could support prescription volumes and strengthen CVS’s local market share. CVS Targets Former Walgreens and Rite Aid Customers
• Positive Sentiment: Aetna is streamlining prior authorizations, reporting that more than 95% of eligible requests are approved within 24 hours. Faster approvals may improve member experience and reduce administrative friction, although the direct financial effect is not yet quantified. How CVS Aetna Is Reducing Administrative Burden

CVS Health Stock Down 1.2%

Shares of NYSE:CVS opened at $93.62 on Thursday. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.74. CVS Health has a 52-week low of $69.51 and a 52-week high of $110.68. The stock's fifty day simple moving average is $91.68 and its 200-day simple moving average is $93.63. The company has a market capitalization of $119.74 billion, a P/E ratio of 24.77, a P/E/G ratio of 0.88 and a beta of 0.60.

CVS Health (NYSE:CVS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The pharmacy operator reported $2.58 EPS for the quarter, beating analysts' consensus estimates of $1.87 by $0.71. The business had revenue of $106.10 billion for the quarter, compared to analyst estimates of $100.03 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%. The business's revenue for the quarter was up 7.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.81 earnings per share. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. As a group, equities research analysts forecast that CVS Health will post 8.02 earnings per share for the current fiscal year.

CVS Health Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd will be issued a dividend of $0.6650 per share. The ex-dividend date is Thursday, October 22nd. This represents a $2.66 dividend on an annualized basis and a dividend yield of 2.8%. CVS Health's payout ratio is 70.37%.

Hedge Funds Weigh In On CVS Health

Several institutional investors and hedge funds have recently modified their holdings of the company. Kachkovsky & Fisher Inc. purchased a new stake in CVS Health in the 3rd quarter worth approximately $201,000. Cantor Fitzgerald Investment Advisors L.P. raised its holdings in CVS Health by 2.5% in the 3rd quarter. Cantor Fitzgerald Investment Advisors L.P. now owns 260,592 shares of the pharmacy operator's stock valued at $22,330,000 after acquiring an additional 6,402 shares during the last quarter. Seamount Financial Group Inc. purchased a new position in shares of CVS Health during the 3rd quarter worth $368,000. Axxcess Wealth Management LLC lifted its stake in shares of CVS Health by 2.2% during the 3rd quarter. Axxcess Wealth Management LLC now owns 12,258 shares of the pharmacy operator's stock worth $1,050,000 after purchasing an additional 261 shares during the period. Finally, Crossmark Global Holdings Inc. boosted its holdings in shares of CVS Health by 11.3% during the third quarter. Crossmark Global Holdings Inc. now owns 440,645 shares of the pharmacy operator's stock worth $37,759,000 after purchasing an additional 44,828 shares during the last quarter. Hedge funds and other institutional investors own 80.66% of the company's stock.

CVS Health Company Profile

CVS Health Corporation NYSE: CVS is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company's Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.

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