CVS Health (NYSE:CVS) Stock Rating Cut to “Buy” at Wall Street Zen

Wall Street Zen downgraded shares of CVS Health (NYSE:CVS) from a strong-buy rating to a buy rating in a report issued on Monday,Wall Street Zen reports.

Other research analysts have also recently issued reports about the stock. Truist Financial lifted their price target on shares of CVS Health from $108.00 to $118.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. UBS Group reiterated a “buy” rating on shares of CVS Health in a research note on Tuesday, September 22nd. Piper Sandler set a $112.00 price objective on shares of CVS Health in a research report on Wednesday, September 9th. Argus raised their target price on shares of CVS Health from $104.00 to $114.00 and gave the company a “buy” rating in a research note on Wednesday, August 19th. Finally, Cantor Fitzgerald reissued a “neutral” rating on shares of CVS Health in a research note on Friday, October 9th. Twenty research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $107.80.

CVS Health Stock Performance

CVS Health stock opened at $92.68 on Monday. The company has a market cap of $118.53 billion, a price-to-earnings ratio of 11.78, a price-to-earnings-growth ratio of 0.86 and a beta of 0.60. CVS Health has a 12 month low of $69.51 and a 12 month high of $110.68. 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 stock’s 50-day moving average is $91.68 and its 200-day moving average is $93.33.

CVS Health (NYSE:CVS) last issued its earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.87 by $0.71. The business had revenue of $106.10 billion during the quarter, compared to analysts’ expectations of $100.03 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%. The company’s revenue for the quarter was up 7.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.81 EPS. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Equities analysts anticipate that CVS Health will post 8.02 earnings per share for the current year.

CVS Health Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd will be paid a $0.6650 dividend. The ex-dividend date is Thursday, October 22nd. This represents a $2.66 dividend on an annualized basis and a dividend yield of 2.9%. CVS Health’s dividend payout ratio (DPR) is 70.37%.

Hedge Funds Weigh In On CVS Health

Several hedge funds and other institutional investors have recently bought and sold shares of CVS. BlackRock Inc. acquired a new stake in CVS Health during the 2nd quarter valued at $12,747,462,000. State Street Corp lifted its holdings 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 in the last quarter. Wellington Management Group LLP boosted its position 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 worth $3,496,725,000 after buying an additional 11,233,381 shares during the period. Bank of America Corp DE boosted its position 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 worth $2,398,868,000 after buying an additional 13,836,701 shares during the period. Finally, Pzena Investment Management LLC acquired a new stake in shares of CVS Health in the second quarter worth $1,217,558,000. 80.66% of the stock is owned by institutional investors and hedge funds.

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.