Traders Buy CVS Health (CVS) on Weakness

Investors purchased shares of CVS Health Corp (NYSE:CVS) on weakness during trading on Friday. $645.74 million flowed into the stock on the tick-up and $206.74 million flowed out of the stock on the tick-down, for a money net flow of $439.00 million into the stock. Of all stocks tracked, CVS Health had the 4th highest net in-flow for the day. CVS Health traded down ($0.28) for the day and closed at $55.60

CVS has been the subject of several analyst reports. UBS Group initiated coverage on shares of CVS Health in a report on Thursday, January 17th. They set a “buy” rating and a $75.00 price target for the company. Cantor Fitzgerald restated a “buy” rating and issued a $96.00 price objective on shares of CVS Health in a research report on Thursday, January 3rd. Bank of America restated a “buy” rating and issued a $92.00 price objective on shares of CVS Health in a research report on Thursday, January 3rd. SunTrust Banks lowered their price objective on shares of CVS Health to $85.00 and set a “buy” rating for the company in a research report on Thursday, February 21st. Finally, Morgan Stanley set a $92.00 price objective on shares of CVS Health and gave the company a “buy” rating in a research report on Friday, February 22nd. One analyst has rated the stock with a sell rating, three have assigned a hold rating and fifteen have assigned a buy rating to the stock. CVS Health presently has an average rating of “Buy” and an average price target of $84.18.

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.65 and a current ratio of 1.03. The stock has a market cap of $70.89 billion, a price-to-earnings ratio of 7.85, a PEG ratio of 1.06 and a beta of 0.95.

CVS Health (NYSE:CVS) last issued its quarterly earnings results on Wednesday, February 20th. The pharmacy operator reported $2.14 EPS for the quarter, topping the consensus estimate of $2.07 by $0.07. CVS Health had a negative net margin of 0.31% and a positive return on equity of 17.49%. The company had revenue of $54.42 billion during the quarter, compared to analysts’ expectations of $53.78 billion. During the same quarter in the previous year, the company earned $1.92 EPS. CVS Health’s revenue was up 12.5% on a year-over-year basis. As a group, equities research analysts forecast that CVS Health Corp will post 6.8 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 3rd. Stockholders of record on Tuesday, April 23rd will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 3.60%. The ex-dividend date is Monday, April 22nd. CVS Health’s dividend payout ratio is 28.25%.

In other CVS Health news, Director C David Brown II purchased 10,000 shares of the stock in a transaction dated Monday, March 11th. The stock was bought at an average price of $53.18 per share, for a total transaction of $531,800.00. Following the transaction, the director now directly owns 16,222 shares in the company, valued at $862,685.96. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Larry J. Merlo sold 166,368 shares of CVS Health stock in a transaction that occurred on Tuesday, January 8th. The stock was sold at an average price of $69.04, for a total transaction of $11,486,046.72. Following the sale, the insider now owns 496,577 shares of the company’s stock, valued at approximately $34,283,676.08. The disclosure for this sale can be found here. In the last quarter, insiders have bought 23,600 shares of company stock valued at $1,270,896 and have sold 412,039 shares valued at $27,326,012. 0.53% of the stock is owned by insiders.

Several large investors have recently modified their holdings of the company. Levin Capital Strategies L.P. grew its holdings in CVS Health by 12,771.1% during the fourth quarter. Levin Capital Strategies L.P. now owns 972,409 shares of the pharmacy operator’s stock valued at $63,712,000 after purchasing an additional 964,854 shares during the period. Jackson Wealth Management LLC acquired a new position in CVS Health during the fourth quarter valued at approximately $1,535,000. Morgan Stanley grew its holdings in CVS Health by 7.9% during the third quarter. Morgan Stanley now owns 9,018,238 shares of the pharmacy operator’s stock valued at $709,914,000 after purchasing an additional 659,975 shares during the period. Capital International Investors grew its holdings in CVS Health by 5,579.8% during the third quarter. Capital International Investors now owns 9,161,488 shares of the pharmacy operator’s stock valued at $721,192,000 after purchasing an additional 9,000,188 shares during the period. Finally, Butensky & Cohen Financial Security Inc. grew its holdings in CVS Health by 1.5% during the fourth quarter. Butensky & Cohen Financial Security Inc. now owns 27,715 shares of the pharmacy operator’s stock valued at $1,816,000 after purchasing an additional 409 shares during the period. Institutional investors own 84.55% of the company’s stock.

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About CVS Health (NYSE:CVS)

CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order, specialty pharmacy and infusion services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services.

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