CVS Health (NYSE:CVS) Rating Increased to Strong-Buy at Wall Street Zen

Wall Street Zen upgraded shares of CVS Health (NYSE:CVS) from a buy rating to a strong-buy rating in a research note issued to investors on Sunday morning,Wall Street Zen reports.

A number of other equities analysts also recently commented on the stock. UBS Group decreased their price objective on shares of CVS Health from $126.00 to $118.00 and set a “buy” rating for the company in a report on Thursday, September 3rd. Wells Fargo & Company increased their target price on shares of CVS Health from $103.00 to $123.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Truist Financial raised their price target on shares of CVS Health from $108.00 to $118.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Weiss Ratings raised shares of CVS Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 5th. Finally, Mizuho increased their price objective on shares of CVS Health from $110.00 to $115.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Twenty-two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $107.24.

CVS Health Stock Up 0.2%

NYSE:CVS opened at $89.02 on Friday. The company has a market capitalization of $113.86 billion, a price-to-earnings ratio of 23.55, a price-to-earnings-growth ratio of 0.87 and a beta of 0.59. CVS Health has a one year low of $69.51 and a one year high of $110.68. The stock has a 50-day simple moving average of $98.79 and a 200 day simple moving average of $91.37. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87.

CVS Health (NYSE:CVS) last announced its quarterly earnings data on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.71. CVS Health had a return on equity of 13.12% and a net margin of 1.18%.The firm had revenue of $106.10 billion for the quarter, compared to analysts’ expectations of $100.03 billion. During the same quarter in the prior year, the firm posted $1.81 earnings per share. CVS Health’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. Sell-side analysts predict that CVS Health will post 8.02 EPS for the current fiscal year.

CVS Health Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd were paid a $0.665 dividend. This represents a $2.66 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date was Thursday, July 23rd. CVS Health’s dividend payout ratio (DPR) is presently 70.37%.

Hedge Funds Weigh In On CVS Health

Several institutional investors have recently modified their holdings of the company. Handelsbanken Fonder AB grew its stake in shares of CVS Health by 83.6% in the 2nd quarter. Handelsbanken Fonder AB now owns 1,089,694 shares of the pharmacy operator’s stock worth $112,729,000 after purchasing an additional 496,124 shares during the last quarter. BNP Paribas lifted its stake in CVS Health by 105.2% during the second quarter. BNP Paribas now owns 49,971 shares of the pharmacy operator’s stock valued at $5,154,000 after purchasing an additional 25,617 shares during the last quarter. Legal & General Group Plc boosted its holdings in CVS Health by 0.3% during the fourth quarter. Legal & General Group Plc now owns 9,309,182 shares of the pharmacy operator’s stock worth $738,777,000 after buying an additional 31,249 shares in the last quarter. State Street Corp grew its position in CVS Health by 2.1% in the fourth quarter. State Street Corp now owns 60,183,743 shares of the pharmacy operator’s stock worth $4,776,182,000 after buying an additional 1,245,457 shares during the last quarter. Finally, Deutsche Bank AG grew its position in CVS Health by 28.4% in the fourth quarter. Deutsche Bank AG now owns 4,666,495 shares of the pharmacy operator’s stock worth $370,333,000 after buying an additional 1,031,998 shares during the last quarter. Institutional investors own 80.66% of the company’s stock.

CVS Health News Roundup

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

• Positive Sentiment: Aetna is streamlining oncology prior authorizations. CVS’s insurance unit plans to reduce cancer-treatment approvals to one initial medical prior authorization, with bundled approvals expanding across eligible Medicaid members and all Aetna business lines in 2027. The move could lower administrative costs, reduce provider friction and accelerate member access to care. Reuters article
• Positive Sentiment: Margin improvement remains a potential catalyst. A Trefis analysis highlighted management’s efforts to rebuild Aetna’s profitability. With CVS generating only about a 1.2% net margin on $415.1 billion of revenue, even modest margin expansion could materially increase earnings and support the investment case. Trefis article
• Neutral Sentiment: Operational and community initiatives offer limited immediate financial impact. CVS discussed using digital-twin technology to improve decision-making and speed, while also redeveloping a youth soccer pitch with Seattle Reign FC and the RAVE Foundation. These initiatives may support efficiency and brand reputation but are unlikely to materially affect near-term earnings. Digital twins article Soccer pitch article
• Negative Sentiment: Omnicare has completed its Chapter 11 liquidation. The closure removes an underperforming operation, but the bankruptcy highlights restructuring and execution challenges within CVS’s broader business. TheStreet article

About CVS Health

CVS Health Corporation is an American health care company headquartered in Woonsocket, Rhode Island. Founded in 1963 as Consumer Value Stores, the company has expanded from a chain of retail pharmacies into an integrated health care organization serving consumers, employers, health plans, government programs and health care providers.

CVS Health operates through several major businesses. Its Health Care Benefits segment, anchored by Aetna, provides health insurance products and related services for employers, individuals, Medicare and Medicaid members.