CVS Health (NYSE:CVS) Shares Gap Up on Strong Earnings


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CVS Health Co. (NYSE:CVS) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $77.69, but opened at $79.87. CVS Health shares last traded at $79.56, with a volume of 330,109 shares.

The pharmacy operator reported $2.04 earnings per share for the quarter, topping analysts’ consensus estimates of $1.69 by $0.35. CVS Health had a return on equity of 15.60% and a net margin of 2.99%. The firm had revenue of $69.10 billion for the quarter, compared to the consensus estimate of $68.33 billion. During the same quarter in the prior year, the business earned $1.91 EPS. The business’s revenue for the quarter was up 3.5% on a year-over-year basis.

The business also recently disclosed a quarterly dividend, which was paid on Monday, May 3rd. Investors of record on Friday, April 23rd were paid a dividend of $0.50 per share. The ex-dividend date was Thursday, April 22nd. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.51%. CVS Health’s dividend payout ratio (DPR) is presently 28.25%.

A number of research analysts have recently commented on the company. Guggenheim reiterated a “neutral” rating on shares of CVS Health in a research report on Tuesday, March 23rd. Truist raised their price target on CVS Health from $80.00 to $88.00 in a research note on Wednesday, April 14th. Morgan Stanley lifted their target price on CVS Health from $86.00 to $92.00 and gave the stock an “overweight” rating in a report on Tuesday, April 20th. Jefferies Financial Group upgraded CVS Health from a “hold” rating to a “buy” rating and set a $90.00 price target for the company in a research report on Friday, January 8th. Finally, Truist Securities lifted their price target on CVS Health from $80.00 to $88.00 and gave the company a “buy” rating in a research report on Tuesday, April 20th. Four analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $84.31.

In other news, Director Larry J. Merlo sold 270,650 shares of CVS Health stock in a transaction dated Friday, March 26th. The stock was sold at an average price of $74.73, for a total transaction of $20,225,674.50. Following the sale, the director now directly owns 794,676 shares of the company’s stock, valued at $59,386,137.48. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Edward J. Ludwig bought 3,000 shares of the company’s stock in a transaction dated Wednesday, February 17th. The shares were acquired at an average cost of $72.00 per share, for a total transaction of $216,000.00. Insiders have sold 583,892 shares of company stock worth $43,918,083 in the last 90 days. Insiders own 0.46% of the company’s stock.

Institutional investors have recently made changes to their positions in the stock. ShoreHaven Wealth Partners LLC bought a new stake in CVS Health in the fourth quarter valued at about $25,000. Jackson Grant Investment Advisers Inc. boosted its position in shares of CVS Health by 127.8% during the fourth quarter. Jackson Grant Investment Advisers Inc. now owns 360 shares of the pharmacy operator’s stock worth $25,000 after buying an additional 202 shares during the period. Greenhouse Wealth Management LLC acquired a new position in shares of CVS Health during the fourth quarter worth approximately $26,000. Lederer & Associates Investment Counsel CA acquired a new position in shares of CVS Health during the first quarter worth approximately $30,000. Finally, Reby Advisors LLC acquired a new position in shares of CVS Health during the fourth quarter worth approximately $34,000. 74.21% of the stock is owned by hedge funds and other institutional investors.

The stock has a market capitalization of $104.55 billion, a price-to-earnings ratio of 12.84, a P/E/G ratio of 1.72 and a beta of 0.82. The company has a quick ratio of 0.67, a current ratio of 0.95 and a debt-to-equity ratio of 0.89. The business has a 50-day simple moving average of $74.98 and a two-hundred day simple moving average of $70.72.

About CVS Health (NYSE:CVS)

CVS Health Corporation provides health services in the United States. The company's Pharmacy Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, clinical, and disease and medical spend management services.

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