CVS Health (NYSE:CVS) Stock Breaks Below 200 Day Moving Average - What's Next?

Key Points

• CVS Health shares fell below their 200-day moving average of $88.80, trading as low as $87.88 before closing near $88.54.
• Analyst sentiment remains generally positive, with 19 Buy ratings and three Holds; the stock has a “Moderate Buy” consensus and an average price target of $109.64.
• CVS reported stronger-than-expected quarterly results, including $2.58 in EPS and $106.1 billion in revenue, while maintaining a quarterly dividend of $0.665 per share, representing a 3.0% yield.

CVS Health Corporation (NYSE:CVS - Get Free Report)'s share price passed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $88.80 and traded as low as $87.88. CVS Health shares last traded at $88.5390, with a volume of 9,547,546 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts have recently commented on CVS shares. Cantor Fitzgerald reissued a "neutral" rating on shares of CVS Health in a research report on Friday, October 9th. Wells Fargo & Company lifted their price target on CVS Health from $103.00 to $123.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. JPMorgan Chase & Co. boosted their price objective on CVS Health from $111.00 to $118.00 and gave the stock an "overweight" rating in a report on Wednesday, August 12th. HSBC reissued a "hold" rating and issued a $103.00 price objective on shares of CVS Health in a research note on Monday, July 6th. Finally, Weiss Ratings cut CVS Health from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 9th. Nineteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $109.64.

CVS Health Stock Performance

The company has a debt-to-equity ratio of 0.74, a current ratio of 0.87 and a quick ratio of 0.66. The company's fifty day moving average price is $91.13 and its 200 day moving average price is $88.80. The company has a market cap of $113.24 billion, a PE ratio of 23.42, a P/E/G ratio of 0.84 and a beta of 0.60.

CVS Health (NYSE:CVS - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, topping the consensus estimate of $1.87 by $0.71. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The business had revenue of $106.10 billion for the quarter, compared to analysts' expectations of $100.03 billion. During the same period in the previous year, the company earned $1.81 earnings per share. The firm's revenue for the quarter was up 7.3% compared to the same quarter last year. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. On average, equities research analysts predict that CVS Health Corporation will post 8.02 earnings per share for the current year.

CVS Health Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd were paid a $0.6650 dividend. This represents a $2.66 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date was Thursday, October 22nd. CVS Health's payout ratio is presently 70.37%.

Institutional Trading of CVS Health

A number of institutional investors and hedge funds have recently modified their holdings of CVS. BlackRock Inc. bought a new stake in shares of CVS Health during the 2nd quarter worth $12,747,462,000. State Street Corp grew its position in CVS Health by 26.3% during 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 buying an additional 15,604,883 shares during the period. Wellington Management Group LLP increased its holdings in CVS Health by 49.8% during the second quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator's stock worth $3,496,725,000 after buying an additional 11,233,381 shares during the last quarter. Bank of America Corp DE raised its position in 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 worth $2,398,868,000 after acquiring an additional 13,836,701 shares during the period. Finally, Pzena Investment Management LLC bought a new stake in CVS Health in the second quarter worth about $1,217,558,000. 80.66% of the stock is owned by hedge funds and other institutional investors.

About CVS Health

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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