CVS Health (NYSE:CVS) Stock Sees Heavy Call Option Buying

CVS Health Corporation (NYSE:CVS) was the recipient of unusually large options trading activity on Thursday. Stock investors acquired 51,620 call options on the company. This represents an increase of 203% compared to the average daily volume of 17,056 call options.

Analyst Upgrades and Downgrades

CVS has been the topic of several recent research reports. Robert W. Baird set a $107.00 price target on shares of CVS Health in a research report on Thursday, August 6th. UBS Group reiterated a “buy” rating on shares of CVS Health in a research report on Tuesday, September 22nd. Piper Sandler set a $112.00 price objective on CVS Health in a research note on Wednesday, September 9th. Argus lifted their target price on CVS Health from $104.00 to $114.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $112.00 target price on shares of CVS Health in a report on Wednesday, September 9th. Twenty research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, CVS Health has an average rating of “Moderate Buy” and an average price target of $107.80.

CVS Health Stock Up 1.2%

CVS stock opened at $94.54 on Friday. CVS Health has a 52-week low of $69.51 and a 52-week high of $110.68. The company’s 50 day simple moving average is $91.67 and its 200-day simple moving average is $93.78. 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 firm has a market capitalization of $120.92 billion, a P/E ratio of 11.92, a P/E/G ratio of 0.87 and a beta of 0.60.

CVS Health (NYSE:CVS) last issued its quarterly earnings results on Wednesday, August 5th. The pharmacy operator reported $2.58 EPS for the quarter, beating 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 during the quarter, compared to the consensus estimate of $100.03 billion. During the same quarter in the prior year, the firm earned $1.81 EPS. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. As a group, equities research analysts anticipate that CVS Health will post 8.02 EPS for the current year.

CVS Health Dividend Announcement

The firm 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 currently 70.37%.

Institutional Investors Weigh In On CVS Health

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in shares of CVS Health during the second quarter worth approximately $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 purchasing an additional 15,604,883 shares in the last quarter. Bank of America Corp DE increased its stake in CVS Health by 148.0% in the 2nd 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 buying an additional 13,836,701 shares during the period. Pzena Investment Management LLC acquired a new position in CVS Health in the 2nd quarter valued at approximately $1,217,558,000. Finally, Wellington Management Group LLP increased its stake in CVS Health by 49.8% in the 2nd quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator’s stock valued at $3,496,725,000 after buying an additional 11,233,381 shares during the period. 80.66% of the stock is owned by hedge funds and other institutional investors.

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.