CVS Health (NYSE:CVS) Share Price Breaks Above Two Hundred Day Moving Average - What's Next?

Key Points

• CVS shares rose 4.4% and moved above their 200-day moving average, trading around $89 versus the average of $88.94.
• Quarterly results beat expectations: CVS reported adjusted earnings of $2.09 per share versus $1.65 expected, while revenue increased 5.4% year over year to $108.4 billion.
• The planned separation into two companies by 2028 remains a key uncertainty, with execution and valuation concerns tempering some analyst estimates. The incoming Pharmacy CEO also bought about $2 million in shares, and analysts’ average rating is “Moderate Buy.”

CVS Health Corporation (NYSE:CVS - Get Free Report) crossed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $88.94 and traded as high as $89.08. CVS Health shares last traded at $89.0330, with a volume of 15,100,658 shares.

Trending Headlines about CVS Health

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

• Positive Sentiment: Zacks upgraded CVS to Rank #2 (Buy), citing improving optimism about the company’s earnings prospects. Article: All You Need to Know About CVS Health Rating Upgrade to Buy
• Positive Sentiment: Incoming CVS Pharmacy CEO Prem Shah reportedly purchased about $2 million of CVS shares, a notable show of confidence from an executive expected to lead one of the businesses after the separation. Article: CVS Health’s Future Pharmacy CEO Just Bought $2 Million of Stock
• Neutral Sentiment: CVS has announced plans to split into two companies by 2028. The restructuring could let each business focus more clearly on its operations, but the companies’ structure and the benefits to shareholders remain important unanswered questions. Article: CVS Health Announces Plan to Split Into Two Companies
• Negative Sentiment: Analyst estimates have become more cautious as the separation plan is factored in. One fair-value estimate was trimmed from $116.28 to $113.76, with execution risk and valuation concerns weighing on the outlook. Article: CVS Health Stock Fair Value Edges Lower on Separation Risk and Analyst Caution

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on CVS shares. Evercore reissued an "outperform" rating on shares of CVS Health in a report on Wednesday, November 4th. Sanford C. Bernstein restated an "outperform" rating and set a $112.00 price target on shares of CVS Health in a report on Wednesday, September 9th. Raymond James Financial set a $103.00 price objective on CVS Health in a report on Friday. Piper Sandler set a $112.00 price objective on CVS Health in a research report on Wednesday, September 9th. Finally, TD Cowen reissued a "buy" rating on shares of CVS Health in a research note on Wednesday, November 4th. Twenty-three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $108.25.

CVS Health Trading Up 4.4%

The firm has a market capitalization of $113.92 billion, a price-to-earnings ratio of 10.36, a PEG ratio of 0.74 and a beta of 0.58. The business's 50-day simple moving average is $90.12 and its two-hundred day simple moving average is $88.94. The company has a quick ratio of 0.66, a current ratio of 0.85 and a debt-to-equity ratio of 0.71.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The pharmacy operator reported $2.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.65 by $0.44. CVS Health had a net margin of 2.62% and a return on equity of 13.65%. The business had revenue of $108.40 billion for the quarter, compared to the consensus estimate of $104.72 billion. During the same period in the previous year, the firm earned $1.60 EPS. The business's revenue was up 5.4% on a year-over-year basis. Equities analysts forecast that CVS Health Corporation will post 8.25 earnings per share for the current year.

CVS Health Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, November 2nd. Shareholders of record on Thursday, October 22nd were paid a dividend of $0.6650 per share. This represents a $2.66 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date was Thursday, October 22nd. CVS Health's dividend payout ratio is 30.97%.

Insider Activity at CVS Health

In other news, EVP Prem Shah acquired 23,855 shares of the company's stock in a transaction dated Friday, November 6th. The stock was acquired at an average cost of $83.89 per share, with a total value of $2,001,195.95. Following the completion of the purchase, the executive vice president owned 88,516 shares of the company's stock, valued at $7,425,607.24. This represents a 36.89% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 0.85% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CVS Health

Several institutional investors have recently bought and sold shares of CVS. BlackRock Inc. purchased a new stake in CVS Health during the second quarter worth about $12,747,462,000. State Street Corp boosted its stake in shares of CVS Health by 26.3% in the second quarter. State Street Corp now owns 74,927,064 shares of the pharmacy operator's stock valued at $7,751,205,000 after purchasing an additional 15,604,883 shares during the period. Bank of America Corp DE boosted its stake in shares of CVS Health by 148.0% in the second quarter. Bank of America Corp DE now owns 23,188,670 shares of the pharmacy operator's stock valued at $2,398,868,000 after purchasing an additional 13,836,701 shares during the period. Pzena Investment Management LLC acquired a new position in shares of CVS Health in the second quarter valued at approximately $1,217,558,000. Finally, Wellington Management Group LLP grew its holdings in shares of CVS Health by 49.8% in the second quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator's stock valued at $3,496,725,000 after purchasing an additional 11,233,381 shares in the last quarter. 80.66% of the stock is owned by institutional investors and hedge funds.

About CVS Health

CVS Health is a U.S.-based health care company that operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance and other health services. Its businesses include CVS Pharmacy, pharmacy benefit manager CVS Caremark, and Aetna, its health benefits division. The company also provides care through MinuteClinic walk-in clinics and health care businesses including Oak Street Health and Signify Health. Its services span prescription fulfillment, pharmacy benefit management, health insurance, primary care, and in-home and community-based care.

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