CVS Health (NYSE:CVS) Trading 6.3% Higher – What’s Next?

CVS Health Co. (NYSE:CVS)’s stock price shot up 6.3% during mid-day trading on Monday . The stock traded as high as $51.05 and last traded at $51.03. 8,925,225 shares traded hands during trading, a decline of 29% from the average session volume of 12,486,032 shares. The stock had previously closed at $48.01.

Analysts Set New Price Targets

A number of research firms have recently weighed in on CVS. Wells Fargo & Company raised CVS Health from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $60.00 to $66.00 in a research note on Monday, November 18th. Piper Sandler reduced their target price on shares of CVS Health from $72.00 to $64.00 and set an “overweight” rating for the company in a research note on Monday, November 25th. Deutsche Bank Aktiengesellschaft upgraded shares of CVS Health from a “hold” rating to a “buy” rating and set a $66.00 price target on the stock in a report on Tuesday, December 3rd. Evercore ISI upped 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 reaffirmed a “neutral” rating and issued a $62.00 price target on shares of CVS Health in a research report on Tuesday, October 1st. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and thirteen have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $68.71.

CVS Health Price Performance

The company has a quick ratio of 0.59, a current ratio of 0.80 and a debt-to-equity ratio of 0.80. The stock’s 50-day moving average price is $51.68 and its 200 day moving average price is $56.44. The firm has a market cap of $65.63 billion, a price-to-earnings ratio of 13.24, a price-to-earnings-growth ratio of 0.85 and a beta of 0.59.

CVS Health (NYSE:CVS) last posted its quarterly earnings results on Wednesday, November 6th. The pharmacy operator reported $1.09 EPS for the quarter, beating the consensus estimate of $1.08 by $0.01. CVS Health had a return on equity of 10.72% and a net margin of 1.36%. The firm had revenue of $95.43 billion during the quarter, compared to analysts’ expectations of $92.72 billion. During the same quarter in the prior year, the firm posted $2.21 EPS. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. Equities research analysts predict that CVS Health Co. will post 5.32 earnings per share for the current year.

CVS Health Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, February 3rd. Shareholders of record on Thursday, January 23rd will be paid a dividend of $0.665 per share. The ex-dividend date is Thursday, January 23rd. This represents a $2.66 dividend on an annualized basis and a yield of 5.10%. CVS Health’s dividend payout ratio is currently 67.51%.

Hedge Funds Weigh In On CVS Health

Hedge funds and other institutional investors have recently made changes to their positions in the business. HB Wealth Management LLC raised its position in CVS Health by 12.7% in the fourth quarter. HB Wealth Management LLC now owns 20,029 shares of the pharmacy operator’s stock worth $899,000 after purchasing an additional 2,262 shares in the last quarter. Avanza Fonder AB acquired a new position in shares of CVS Health in the 4th quarter worth approximately $4,745,000. Sterling Financial Group Inc. lifted its position in shares of CVS Health by 16.4% during the 4th quarter. Sterling Financial Group Inc. now owns 15,363 shares of the pharmacy operator’s stock worth $690,000 after buying an additional 2,169 shares during the period. Empirical Asset Management LLC boosted its stake in CVS Health by 816.4% in the 4th quarter. Empirical Asset Management LLC now owns 36,885 shares of the pharmacy operator’s stock valued at $1,656,000 after buying an additional 32,860 shares in the last quarter. Finally, Dixon Mitchell Investment Counsel Inc. grew its position in CVS Health by 38.7% in the fourth quarter. Dixon Mitchell Investment Counsel Inc. now owns 1,168 shares of the pharmacy operator’s stock valued at $52,000 after acquiring an additional 326 shares during the period. 80.66% of the stock is owned by institutional investors.

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.