CVS Health (NYSE:CVS) Shares Gap Down After Analyst Downgrade

Shares of CVS Health Corporation (NYSE:CVS) gapped down before the market opened on Tuesday after Argus lowered their price target on the stock from $91.00 to $90.00. The stock had previously closed at $83.87, but opened at $75.39. Argus currently has a buy rating on the stock. CVS Health shares last traded at $74.7420, with a volume of 11,895,453 shares.

Several other equities research analysts have also issued reports on the company. Piper Sandler reissued an “overweight” rating and set a $101.00 price target (up from $99.00) on shares of CVS Health in a research report on Wednesday, December 10th. UBS Group reissued an “outperform” rating on shares of CVS Health in a report on Wednesday, December 10th. Raymond James Financial upped their price objective on CVS Health from $75.00 to $90.00 in a research note on Friday, October 31st. Robert W. Baird boosted their price target on shares of CVS Health from $82.00 to $92.00 and gave the company an “outperform” rating in a report on Wednesday, December 10th. Finally, Bank of America lowered their price target on shares of CVS Health from $100.00 to $95.00 and set a “buy” rating for the company in a research report on Tuesday. Twenty equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, CVS Health has a consensus rating of “Moderate Buy” and an average target price of $94.82.

Key CVS Health News

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

• Positive Sentiment: CVS shares rose while the broader market fell, reflecting short-term buying interest and risk-on flows. Zacks Article
• Positive Sentiment: Short interest fell ~13.4% in January to ~18.76M shares (1.5% of float), lowering potential downward pressure from short sellers and reducing squeeze risk (days-to-cover ~2.5). Short Interest Data
• Positive Sentiment: An executive vice president disclosed a small open-market buy (24 shares at ~$53.70 on Jan. 23), a modest insider signal of confidence. SEC Form 4
• Neutral Sentiment: Analysts at Argus cut their price target slightly from $91 to $90 but kept a “buy” rating (still showing material upside), signaling continued analyst support despite the trim. The Fly
• Neutral Sentiment: Bank of America lowered its target from $100 to $95 but maintained a “buy” stance, also implying continued conviction in longer-term upside despite near-term adjustments. Benzinga
• Negative Sentiment: The administration’s proposal to keep Medicare rates roughly flat has pressured Medicare-related revenue expectations for payers and pharmacy benefit managers, contributing to earlier selloffs and ongoing margin concerns for CVS. Barron’s
• Negative Sentiment: A House Judiciary report and related coverage allege CVS used tactics to limit competition from rival pharmacy hubs, introducing regulatory and legal risk that could increase compliance costs or fines. HealthcareDive

Institutional Investors Weigh In On CVS Health

Institutional investors and hedge funds have recently modified their holdings of the stock. Avion Wealth boosted its stake in CVS Health by 99.0% in the 2nd quarter. Avion Wealth now owns 380 shares of the pharmacy operator’s stock worth $26,000 after purchasing an additional 189 shares during the period. Harbor Capital Advisors Inc. increased its holdings in CVS Health by 72.1% in the third quarter. Harbor Capital Advisors Inc. now owns 339 shares of the pharmacy operator’s stock worth $26,000 after buying an additional 142 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its stake in shares of CVS Health by 407.2% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator’s stock worth $26,000 after purchasing an additional 281 shares during the last quarter. Corundum Trust Company INC bought a new position in CVS Health during the third quarter valued at about $29,000. Finally, Harbor Asset Planning Inc. bought a new position in shares of CVS Health in the 2nd quarter valued at approximately $30,000. 80.66% of the stock is owned by institutional investors and hedge funds.

CVS Health Stock Performance

The company has a quick ratio of 0.63, a current ratio of 0.83 and a debt-to-equity ratio of 0.83. The stock’s 50-day moving average price is $79.01 and its 200 day moving average price is $75.02. The company has a market cap of $94.12 billion, a P/E ratio of 195.11, a price-to-earnings-growth ratio of 0.66 and a beta of 0.48.

CVS Health (NYSE:CVS) last posted its quarterly earnings data on Wednesday, October 29th. The pharmacy operator reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.24. The business had revenue of $102.87 billion during the quarter, compared to analysts’ expectations of $98.85 billion. CVS Health had a return on equity of 11.45% and a net margin of 0.12%.The firm’s revenue was up 7.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.09 EPS. As a group, research analysts expect that CVS Health Corporation will post 5.89 EPS for the current fiscal year.

CVS Health Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Investors of record on Thursday, January 22nd will be paid a dividend of $0.665 per share. This represents a $2.66 annualized dividend and a yield of 3.6%. The ex-dividend date is Thursday, January 22nd. CVS Health’s payout ratio is currently 700.00%.

About CVS Health

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.