CVS Health (NYSE:CVS) Trading Down 1.5% After Analyst Downgrade

CVS Health Co. (NYSE:CVS) fell 1.5% on Wednesday after Wells Fargo & Company lowered their price target on the stock from $76.00 to $60.00. Wells Fargo & Company currently has an equal weight rating on the stock. CVS Health traded as low as $54.69 and last traded at $54.93. 3,955,369 shares changed hands during trading, a decline of 66% from the average session volume of 11,776,579 shares. The stock had previously closed at $55.74.

A number of other equities analysts have also commented on CVS. Mizuho cut their price target on shares of CVS Health from $86.00 to $72.00 and set a “buy” rating on the stock in a report on Thursday, May 2nd. Bank of America decreased their price target on CVS Health from $95.00 to $77.00 and set a “buy” rating for the company in a research note on Thursday, May 2nd. Barclays reduced their target price on CVS Health from $78.00 to $63.00 and set an “equal weight” rating on the stock in a report on Thursday, May 2nd. SVB Leerink restated a “market perform” rating and set a $60.00 price target (down previously from $87.00) on shares of CVS Health in a report on Wednesday, May 1st. Finally, Piper Sandler upped their price objective on shares of CVS Health from $93.00 to $94.00 and gave the company an “overweight” rating in a research note on Friday, March 15th. Nine equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $77.55.

Insiders Place Their Bets

In other news, Director Edward J. Ludwig acquired 1,000 shares of the firm’s stock in a transaction on Thursday, May 2nd. The stock was purchased at an average price of $53.88 per share, for a total transaction of $53,880.00. Following the purchase, the director now owns 21,630 shares in the company, valued at approximately $1,165,424.40. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. In other news, EVP Prem S. Shah sold 29,473 shares of the stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $76.95, for a total transaction of $2,267,947.35. Following the completion of the transaction, the executive vice president now directly owns 39,765 shares of the company’s stock, valued at approximately $3,059,916.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Edward J. Ludwig acquired 1,000 shares of the company’s stock in a transaction that occurred on Thursday, May 2nd. The stock was purchased at an average price of $53.88 per share, for a total transaction of $53,880.00. Following the purchase, the director now owns 21,630 shares of the company’s stock, valued at approximately $1,165,424.40. The disclosure for this purchase can be found here. Corporate insiders own 0.24% of the company’s stock.

Institutional Trading of CVS Health

Several hedge funds have recently made changes to their positions in the company. Chicago Partners Investment Group LLC grew its stake in CVS Health by 1.5% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 13,455 shares of the pharmacy operator’s stock valued at $928,000 after buying an additional 201 shares in the last quarter. Park Avenue Securities LLC grew its position in shares of CVS Health by 6.9% in the third quarter. Park Avenue Securities LLC now owns 27,311 shares of the pharmacy operator’s stock valued at $1,907,000 after purchasing an additional 1,753 shares in the last quarter. Catalyst Financial Partners LLC raised its stake in shares of CVS Health by 19.8% during the 3rd quarter. Catalyst Financial Partners LLC now owns 5,829 shares of the pharmacy operator’s stock valued at $407,000 after purchasing an additional 962 shares during the period. Punch & Associates Investment Management Inc. boosted its stake in CVS Health by 0.6% in the 3rd quarter. Punch & Associates Investment Management Inc. now owns 84,877 shares of the pharmacy operator’s stock worth $5,926,000 after purchasing an additional 547 shares during the period. Finally, Gratus Capital LLC bought a new stake in shares of CVS Health during the third quarter valued at about $305,000. 80.66% of the stock is currently owned by institutional investors.

CVS Health Price Performance

The business’s 50-day moving average price is $71.95 and its 200 day moving average price is $73.09. The company has a quick ratio of 0.61, a current ratio of 0.81 and a debt-to-equity ratio of 0.78. The company has a market capitalization of $69.33 billion, a P/E ratio of 9.65, a price-to-earnings-growth ratio of 0.88 and a beta of 0.56.

CVS Health (NYSE:CVS) last issued its quarterly earnings data on Wednesday, May 1st. The pharmacy operator reported $1.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.38). CVS Health had a return on equity of 13.53% and a net margin of 2.03%. The business had revenue of $88.44 billion during the quarter, compared to analysts’ expectations of $89.33 billion. During the same quarter last year, the business posted $2.20 EPS. The company’s quarterly revenue was up 3.7% on a year-over-year basis. Analysts anticipate that CVS Health Co. will post 7.03 EPS for the current fiscal year.

CVS Health Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 1st. Investors of record on Monday, April 22nd were given a $0.665 dividend. The ex-dividend date of this dividend was Friday, April 19th. This represents a $2.66 annualized dividend and a yield of 4.82%. CVS Health’s dividend payout ratio (DPR) is presently 46.75%.

About CVS Health

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.