CVS Health (NYSE:CVS) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of CVS Health (NYSE:CVS) from a buy rating to a hold rating in a research note issued to investors on Wednesday.

CVS has been the subject of several other research reports. Bank of America raised their price target on shares of CVS Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Monday, June 22nd. Wells Fargo & Company upped their price objective on CVS Health from $103.00 to $123.00 and gave the stock an “overweight” rating in a research report on Monday. Argus lifted their target price on CVS Health from $90.00 to $104.00 and gave the company a “buy” rating in a report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft boosted their target price on CVS Health from $88.00 to $92.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Finally, TD Cowen upped their price target on CVS Health from $105.00 to $110.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Twenty-one investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $105.38.

CVS Health Stock Up 0.8%

Shares of NYSE:CVS opened at $107.36 on Wednesday. The company has a debt-to-equity ratio of 0.78, a current ratio of 0.87 and a quick ratio of 0.66. The firm has a market capitalization of $136.99 billion, a PE ratio of 47.30, a price-to-earnings-growth ratio of 1.04 and a beta of 0.61. The firm’s 50-day moving average is $98.97 and its two-hundred day moving average is $85.13. CVS Health has a 1 year low of $58.50 and a 1 year high of $108.97.

CVS Health (NYSE:CVS) last posted its quarterly earnings data on Wednesday, May 6th. The pharmacy operator reported $2.57 EPS for the quarter, beating the consensus estimate of $2.21 by $0.36. The business had revenue of $100.43 billion during the quarter, compared to analyst estimates of $94.99 billion. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.25 earnings per share. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. Analysts predict that CVS Health will post 7.46 EPS for the current year.

CVS Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Thursday, July 23rd will be paid a dividend of $0.665 per share. The ex-dividend date is Thursday, July 23rd. This represents a $2.66 dividend on an annualized basis and a dividend yield of 2.5%. CVS Health’s payout ratio is presently 117.18%.

Insider Transactions at CVS Health

In other news, Director Larry Robbins sold 1,983,538 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $94.45, for a total transaction of $187,345,164.10. Following the sale, the director owned 6,213,261 shares of the company’s stock, valued at approximately $586,842,501.45. This trade represents a 24.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Tilak Mandadi sold 69,551 shares of CVS Health stock in a transaction on Friday, May 8th. The shares were sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the completion of the transaction, the executive vice president directly owned 10,133 shares in the company, valued at $907,714.14. The trade was a 87.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 3,441,551 shares of company stock worth $323,703,977. Company insiders own 0.85% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Norges Bank acquired a new stake in CVS Health in the 4th quarter valued at about $1,666,265,000. Wellington Management Group LLP lifted its holdings in shares of CVS Health by 193.2% in the fourth quarter. Wellington Management Group LLP now owns 18,564,392 shares of the pharmacy operator’s stock valued at $1,473,270,000 after purchasing an additional 12,233,675 shares in the last quarter. Pacer Advisors Inc. grew its position in shares of CVS Health by 1,020.7% in the first quarter. Pacer Advisors Inc. now owns 4,845,221 shares of the pharmacy operator’s stock valued at $347,984,000 after purchasing an additional 4,412,882 shares during the last quarter. Amundi increased its stake in shares of CVS Health by 95.3% during the 3rd quarter. Amundi now owns 7,453,980 shares of the pharmacy operator’s stock worth $572,665,000 after purchasing an additional 3,637,943 shares in the last quarter. Finally, Hamlin Capital Management LLC acquired a new position in shares of CVS Health during the 4th quarter worth approximately $160,844,000. Institutional investors and hedge funds own 80.66% of the company’s stock.

Key CVS Health News

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

• Positive Sentiment: CVS opened its first pharmacy-focused location in Houston and plans to roll out nearly 20 similar sites, signaling an effort to expand access to in-person pharmacy care and strengthen its retail footprint. CVS Pharmacy® celebrates opening of first pharmacy-focused location in Houston
• Positive Sentiment: Management reiterated a constructive stance on GLP-1 drugs and pharmacy economics, with CEO comments highlighting that insurers may eventually cover weight-loss drugs more broadly once prices fall, reinforcing CVS’s role in cost management and pharmacy benefit services. CVS Health CEO David Joyner warns private insurers won’t cover GLP-1s for weight loss until drug prices drop
• Positive Sentiment: CVS also floated cost-saving solutions and a settlement in Georgia that could reduce prescription costs for some patients, which may improve public perception and support demand for its pharmacy services. New CVS settlement could lower prescription costs for some Georgians
• Neutral Sentiment: Coverage around CVS education benefits and talent development highlights workforce stability, but it is unlikely to have an immediate impact on the stock. At CVS, education benefits strengthen talent pipelines
• Neutral Sentiment: Broader analyst and media discussion of CVS’s dividend and GLP-1 strategy has helped reinforce the investment case, but this appears more supportive than a near-term catalyst. How Investors May Respond To CVS (CVS) Dividend Move And GLP‑1 Strategy Across Its Health Platform

CVS Health Company Profile

CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.

Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.