CVS Health Corporation (NYSE:CVS) Given Average Recommendation of “Moderate Buy” by Brokerages

Shares of CVS Health Corporation (NYSE:CVS) have earned an average rating of “Moderate Buy” from the twenty-three research firms that are covering the company, Marketbeat reports. One investment analyst has rated the stock with a hold recommendation and twenty-two have given a buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $107.24.

A number of analysts recently commented on CVS shares. Morgan Stanley increased their price target on CVS Health from $106.00 to $111.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. Weiss Ratings upgraded CVS Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 5th. JPMorgan Chase & Co. raised their target price on CVS Health from $111.00 to $118.00 and gave the company an “overweight” rating in a research report on Wednesday, August 12th. Robert W. Baird set a $107.00 target price on CVS Health in a research note on Thursday, August 6th. Finally, Bank of America boosted their price target on shares of CVS Health from $100.00 to $110.00 and gave the stock a “buy” rating in a report on Monday, June 22nd.

Key Stories Impacting CVS Health

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

• Positive Sentiment: Aetna is streamlining oncology prior authorizations. CVS Health’s insurance unit plans to reduce cancer-treatment approvals to one early medical prior authorization, with bundled processes expanding to eligible Medicaid members and across all Aetna businesses in 2027. The move could reduce administrative costs, ease provider friction and accelerate patient access to treatment. Reuters article Aetna press release
• Positive Sentiment: Digital-twin technology may improve execution. CVS is using digital simulations to test changes and make operational decisions more quickly and confidently. Although the financial benefit is not quantified, the technology could support efficiency and better implementation across the company. Digital twins article
• Neutral Sentiment: Valuation appears attractive but carries execution risk. An investment commentary says CVS trades below Wall Street price targets and at an inexpensive forward valuation, while cautioning that the bullish consensus could prove vulnerable if business conditions deteriorate. Valuation analysis
• Neutral Sentiment: CVS also published women’s-health information about polyendocrine metabolic ovarian syndrome and highlighted an affordable-housing project. These initiatives may strengthen its social and healthcare profile but are unlikely to materially affect near-term earnings. Women’s health article Affordable housing article

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Elevation Wealth Partners LLC lifted its stake in shares of CVS Health by 41.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 356 shares of the pharmacy operator’s stock valued at $37,000 after purchasing an additional 105 shares during the last quarter. Apella Capital LLC increased its position in shares of CVS Health by 1.7% during the 2nd quarter. Apella Capital LLC now owns 6,940 shares of the pharmacy operator’s stock valued at $724,000 after purchasing an additional 117 shares during the last quarter. Wellington Altus USA Inc. raised its holdings in CVS Health by 13.3% during the 2nd quarter. Wellington Altus USA Inc. now owns 1,025 shares of the pharmacy operator’s stock valued at $106,000 after buying an additional 120 shares during the period. Northwestern Mutual Investment Management Company LLC lifted its position in CVS Health by 0.3% in the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 40,560 shares of the pharmacy operator’s stock worth $3,219,000 after buying an additional 136 shares during the last quarter. Finally, CoreCap Advisors LLC lifted its position in CVS Health by 4.2% in the second quarter. CoreCap Advisors LLC now owns 3,481 shares of the pharmacy operator’s stock worth $360,000 after buying an additional 139 shares during the last quarter. 80.66% of the stock is owned by institutional investors.

CVS Health Stock Down 1.6%

CVS opened at $90.25 on Friday. CVS Health has a fifty-two week low of $69.51 and a fifty-two week 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 company’s 50-day moving average is $99.09 and its 200 day moving average is $91.31. The firm has a market capitalization of $115.43 billion, a P/E ratio of 23.88, a PEG ratio of 0.89 and a beta of 0.59.

CVS Health (NYSE:CVS) last posted its quarterly earnings data 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 firm had revenue of $106.10 billion during the quarter, compared to analyst estimates of $100.03 billion. During the same quarter last year, the business posted $1.81 EPS. The company’s revenue for the quarter was up 7.3% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Research analysts expect that CVS Health will post 8.02 earnings per share for the current fiscal year.

CVS Health Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd were given a $0.665 dividend. The ex-dividend date of this dividend was Thursday, July 23rd. This represents a $2.66 annualized dividend and a yield of 2.9%. CVS Health’s payout ratio is currently 70.37%.

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.