CVS Health (NYSE:CVS) Shares Gap Up After Earnings Beat

CVS Health Co. (NYSE:CVS) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $66.71, but opened at $72.50. CVS Health shares last traded at $71.56, with a volume of 3,571,146 shares changing hands.

The pharmacy operator reported $2.25 earnings per share for the quarter, beating analysts’ consensus estimates of $1.62 by $0.63. CVS Health had a net margin of 1.24% and a return on equity of 9.11%. The company had revenue of $94.59 billion for the quarter, compared to analysts’ expectations of $93.07 billion. During the same quarter in the previous year, the company earned $1.31 EPS. CVS Health’s revenue for the quarter was up 7.0% on a year-over-year basis.

CVS Health Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 1st. Shareholders of record on Tuesday, April 22nd were issued a dividend of $0.665 per share. This represents a $2.66 dividend on an annualized basis and a yield of 3.94%. The ex-dividend date of this dividend was Tuesday, April 22nd. CVS Health’s dividend payout ratio (DPR) is currently 72.68%.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Robert W. Baird raised their target price on shares of CVS Health from $51.00 to $71.00 and gave the company a “neutral” rating in a research note on Tuesday, April 15th. JPMorgan Chase & Co. increased their price objective on shares of CVS Health from $80.00 to $81.00 and gave the company an “overweight” rating in a report on Tuesday, February 18th. Edward Jones upgraded CVS Health from a “hold” rating to a “buy” rating in a research report on Thursday, January 30th. Wells Fargo & Company raised their price target on CVS Health from $68.00 to $73.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Finally, UBS Group increased their target price on CVS Health from $67.00 to $71.00 and gave the company a “neutral” rating in a research report on Friday. Four research analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $72.69.

Insider Buying and Selling at CVS Health

In related news, Director Michael F. Mahoney bought 30,000 shares of CVS Health stock in a transaction dated Tuesday, February 18th. The shares were acquired at an average cost of $66.70 per share, with a total value of $2,001,000.00. Following the completion of the transaction, the director now owns 39,356 shares in the company, valued at $2,625,045.20. The trade was a 320.65 % increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP James David Clark sold 7,513 shares of the business’s stock in a transaction that occurred on Wednesday, March 5th. The shares were sold at an average price of $66.35, for a total value of $498,487.55. Following the completion of the sale, the senior vice president now owns 8,394 shares of the company’s stock, valued at $556,941.90. The trade was a 47.23 % decrease in their position. The disclosure for this sale can be found here. 1.22% of the stock is currently owned by corporate insiders.

Institutional Trading of CVS Health

Several institutional investors and hedge funds have recently made changes to their positions in CVS. Norges Bank purchased a new position in CVS Health during the fourth quarter valued at approximately $839,574,000. Capital World Investors increased its holdings in shares of CVS Health by 26.6% in the 4th quarter. Capital World Investors now owns 61,039,777 shares of the pharmacy operator’s stock valued at $2,739,927,000 after acquiring an additional 12,819,148 shares during the period. Davis Selected Advisers raised its position in shares of CVS Health by 2,998.1% in the 4th quarter. Davis Selected Advisers now owns 11,385,950 shares of the pharmacy operator’s stock worth $511,115,000 after acquiring an additional 11,018,438 shares in the last quarter. Dodge & Cox boosted its position in CVS Health by 11.2% during the fourth quarter. Dodge & Cox now owns 70,105,899 shares of the pharmacy operator’s stock valued at $3,147,054,000 after purchasing an additional 7,075,209 shares in the last quarter. Finally, Pzena Investment Management LLC grew its stake in CVS Health by 49.3% in the fourth quarter. Pzena Investment Management LLC now owns 19,610,579 shares of the pharmacy operator’s stock valued at $880,319,000 after purchasing an additional 6,475,271 shares during the last quarter. 80.66% of the stock is currently owned by institutional investors.

CVS Health Price Performance

The firm has a market capitalization of $85.09 billion, a P/E ratio of 18.44, a P/E/G ratio of 0.98 and a beta of 0.57. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.81 and a quick ratio of 0.60. The stock’s fifty day simple moving average is $66.72 and its 200 day simple moving average is $58.87.

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.