CVS Health (NYSE:CVS) Stock Moved Up to Strong-Buy by Wall Street Zen

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

A number of other equities analysts also recently commented on the stock. Cantor Fitzgerald reaffirmed a “neutral” rating on shares of CVS Health in a report on Friday. JPMorgan Chase & Co. lifted their target price on shares of 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 shares of CVS Health in a research note on Thursday, August 6th. Argus increased their price target on shares of CVS Health from $104.00 to $114.00 and gave the stock a “buy” rating in a research report on Wednesday, August 19th. Finally, Bank of America raised their price target on shares of CVS Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Monday, June 22nd. Twenty equities 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 company has an average rating of “Moderate Buy” and an average target price of $107.24.

CVS Health Price Performance

Shares of NYSE:CVS opened at $86.15 on Friday. CVS Health has a 1-year low of $69.51 and a 1-year high of $110.68. The firm has a market capitalization of $110.18 billion, a PE ratio of 22.79, a PEG ratio of 0.80 and a beta of 0.60. The business’s 50 day moving average is $92.73 and its 200-day moving average is $92.52. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.74.

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

CVS Health Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 22nd will be issued a dividend of $0.6650 per share. This represents a $2.66 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Thursday, October 22nd. CVS Health’s dividend payout ratio (DPR) is currently 70.37%.

Institutional Trading of CVS Health

Large investors have recently added to or reduced their stakes in the company. Sound Income Strategies LLC lifted its position in shares of CVS Health by 62.1% in the 3rd quarter. Sound Income Strategies LLC now owns 5,036 shares of the pharmacy operator’s stock worth $432,000 after purchasing an additional 1,930 shares during the period. Wedmont Private Capital boosted its stake in shares of CVS Health by 47.0% in the 3rd quarter. Wedmont Private Capital now owns 30,342 shares of the pharmacy operator’s stock valued at $2,600,000 after purchasing an additional 9,707 shares during the last quarter. Stableford Capital II LLC acquired a new stake in shares of CVS Health during the third quarter worth $687,000. Mn Services Vermogensbeheer B.V. increased its position in shares of CVS Health by 1.3% during the third quarter. Mn Services Vermogensbeheer B.V. now owns 375,568 shares of the pharmacy operator’s stock worth $32,182,000 after buying an additional 4,900 shares during the period. Finally, Farther Finance Advisors LLC raised its stake in CVS Health by 30.6% during the third quarter. Farther Finance Advisors LLC now owns 54,244 shares of the pharmacy operator’s stock worth $4,648,000 after buying an additional 12,718 shares during the last quarter. 80.66% of the stock is owned by institutional investors.

More CVS Health News

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

• Positive Sentiment: CVS said more than 69% of Aetna’s Medicare Advantage members are enrolled in plans rated four stars or higher for 2027. The company highlighted solid clinical quality, preventive care and member-experience performance. Aetna 2027 Star Ratings Reflect Strong Clinical Quality and Member Experience
• Positive Sentiment: CVS extended pharmaceutical distribution agreements with Cardinal Health and McKesson through 2032, supporting supply continuity for its retail pharmacies and other dispensing operations. CVS Health Extends Drug Distribution Deals
• Positive Sentiment: Analysts continue to point to potential upside from recovering Aetna margins, improving pharmacy trends, growth in Health Services and CVS’s valuation discount versus peers. The company also opened a compact, pharmacy-focused location in the Boston area, supporting its retail strategy. CVS Trades at a Discount to Industry
• Neutral Sentiment: Options traders reportedly purchased a large volume of CVS call options, signaling speculative bullish interest but not guaranteeing sustained buying in the shares. Traders Buy CVS Call Options
• Negative Sentiment: TD Cowen said Aetna’s 2027 results were weaker than expected, with the portion of Medicare Advantage members in plans rated at least 4.5 stars projected to fall to about 35% from 63%. The decline could reduce quality-related bonus payments and put pressure on Aetna’s earnings and margins. CVS Star Ratings Weaker Than Expected
• Negative Sentiment: The ratings setback has made CVS an underperformer among managed-care stocks, while competitors with stronger Medicare Advantage scores received more favorable investor reactions. Persistent 340B pricing pressure remains an additional risk to the recovery story.

About CVS Health

CVS Health Corp. is an integrated health care company that provides pharmacy, insurance and health services primarily in the United States. Its operations are designed to connect consumers, health plans, health care providers and pharmacy services across multiple points of care.

The company’s major businesses include CVS Pharmacy retail locations, prescription fulfillment and consumer health products; CVS Caremark, a pharmacy benefit management business; and Aetna, which offers health insurance products and related services for employers, individuals, government programs and other organizations.