Stock Traders Buy High Volume of Call Options on CVS Health (NYSE:CVS)

CVS Health Co. (NYSE:CVS) was the recipient of unusually large options trading activity on Monday. Investors bought 56,549 call options on the company. This represents an increase of approximately 28% compared to the typical volume of 44,235 call options.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. MidAtlantic Capital Management Inc. purchased a new stake in shares of CVS Health in the 3rd quarter valued at about $25,000. Livelsberger Financial Advisory bought a new stake in CVS Health during the third quarter valued at approximately $31,000. Legacy Investment Solutions LLC bought a new stake in CVS Health during the third quarter valued at approximately $31,000. Reston Wealth Management LLC bought a new stake in CVS Health during the third quarter valued at approximately $32,000. Finally, First Community Trust NA lifted its holdings in shares of CVS Health by 116.2% in the 2nd quarter. First Community Trust NA now owns 562 shares of the pharmacy operator’s stock worth $33,000 after acquiring an additional 302 shares during the last quarter. 80.66% of the stock is currently owned by hedge funds and other institutional investors.

CVS Health Stock Performance

Shares of CVS stock traded up $3.02 during trading on Monday, reaching $56.21. 9,528,335 shares of the company’s stock traded hands, compared to its average volume of 11,333,778. CVS Health has a 1 year low of $52.71 and a 1 year high of $83.25. The company has a market capitalization of $70.74 billion, a P/E ratio of 13.50, a PEG ratio of 0.92 and a beta of 0.55. The company has a current ratio of 0.80, a quick ratio of 0.59 and a debt-to-equity ratio of 0.80. The firm’s 50-day moving average is $59.23 and its 200 day moving average is $58.60.

CVS Health (NYSE:CVS) last released its quarterly earnings data on Wednesday, November 6th. The pharmacy operator reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.08 by $0.01. CVS Health had a return on equity of 10.72% and a net margin of 1.36%. The company had revenue of $95.43 billion for the quarter, compared to analyst estimates of $92.72 billion. During the same period in the previous year, the company posted $2.21 EPS. The firm’s revenue for the quarter was up 6.3% compared to the same quarter last year. Equities research analysts expect that CVS Health will post 5.48 EPS for the current year.

CVS Health Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, November 1st. Shareholders of record on Monday, October 21st were paid a $0.665 dividend. This represents a $2.66 annualized dividend and a yield of 4.73%. The ex-dividend date was Monday, October 21st. CVS Health’s dividend payout ratio is presently 67.51%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CVS. Truist Financial increased their target price on CVS Health from $66.00 to $76.00 and gave the stock a “buy” rating in a report on Friday, October 11th. StockNews.com downgraded shares of CVS Health from a “hold” rating to a “sell” rating in a research note on Thursday. Mizuho cut their price target on shares of CVS Health from $73.00 to $66.00 and set an “outperform” rating for the company in a report on Thursday, October 24th. Evercore ISI raised their price objective on shares of CVS Health from $62.00 to $75.00 and gave the stock an “outperform” rating in a report on Tuesday, October 8th. Finally, Cantor Fitzgerald restated a “neutral” rating and set a $62.00 price target on shares of CVS Health in a research report on Tuesday, October 1st. One analyst has rated the stock with a sell rating, seven have given a hold rating and thirteen have given a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $72.78.

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.