CVS Health (CVS) Shares Up 5.7% on Earnings Beat

CVS Health Corp (NYSE:CVS) shares shot up 5.7% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $78.09 and last traded at $77.90. 12,827,852 shares changed hands during mid-day trading, an increase of 57% from the average session volume of 8,176,589 shares. The stock had previously closed at $73.69.

The pharmacy operator reported $1.73 earnings per share for the quarter, topping analysts’ consensus estimates of $1.71 by $0.02. CVS Health had a return on equity of 18.25% and a net margin of 1.61%. The firm had revenue of $47.27 billion during the quarter, compared to the consensus estimate of $47.22 billion. During the same quarter in the prior year, the firm posted $1.50 EPS. The business’s revenue was up 2.4% on a year-over-year basis.

The company also recently declared a quarterly dividend, which was paid on Thursday, November 1st. Shareholders of record on Wednesday, October 24th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 2.57%. The ex-dividend date of this dividend was Tuesday, October 23rd. CVS Health’s dividend payout ratio (DPR) is currently 33.90%.

A number of research firms have weighed in on CVS. ValuEngine raised CVS Health from a “sell” rating to a “hold” rating in a research report on Thursday, October 11th. Royal Bank of Canada upped their price target on CVS Health to $101.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 18th. Bank of America upped their price target on CVS Health from $86.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, September 17th. Wolfe Research assumed coverage on CVS Health in a research report on Thursday, October 25th. They set a “peer perform” rating for the company. Finally, Tigress Financial reiterated a “buy” rating on shares of CVS Health in a research note on Friday, October 26th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, ten have issued a buy rating and two have issued a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average price target of $86.18.

In other news, EVP Lisa Bisaccia sold 21,534 shares of the company’s stock in a transaction that occurred on Monday, October 1st. The stock was sold at an average price of $80.00, for a total transaction of $1,722,720.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Kevin Hourican sold 8,564 shares of the company’s stock in a transaction that occurred on Monday, August 27th. The stock was sold at an average price of $75.00, for a total value of $642,300.00. Following the sale, the executive vice president now owns 12,135 shares in the company, valued at approximately $910,125. The disclosure for this sale can be found here. In the last quarter, insiders have sold 43,409 shares of company stock worth $3,392,097. Company insiders own 0.53% of the company’s stock.

Institutional investors have recently made changes to their positions in the company. BlackRock Inc. raised its stake in CVS Health by 5.9% in the 2nd quarter. BlackRock Inc. now owns 74,135,102 shares of the pharmacy operator’s stock valued at $4,770,597,000 after acquiring an additional 4,121,620 shares during the period. Charles Schwab Investment Advisory Inc. bought a new stake in CVS Health in the 2nd quarter valued at $190,701,000. Boston Partners raised its stake in CVS Health by 41.9% in the 2nd quarter. Boston Partners now owns 9,908,888 shares of the pharmacy operator’s stock valued at $637,637,000 after acquiring an additional 2,924,875 shares during the period. Morgan Stanley raised its stake in CVS Health by 28.4% in the 2nd quarter. Morgan Stanley now owns 8,358,263 shares of the pharmacy operator’s stock valued at $537,854,000 after acquiring an additional 1,848,678 shares during the period. Finally, Caisse DE Depot ET Placement DU Quebec raised its stake in CVS Health by 52.1% in the 2nd quarter. Caisse DE Depot ET Placement DU Quebec now owns 5,171,271 shares of the pharmacy operator’s stock valued at $332,771,000 after acquiring an additional 1,771,170 shares during the period. Institutional investors own 82.42% of the company’s stock.

The company has a quick ratio of 1.87, a current ratio of 2.34 and a debt-to-equity ratio of 1.73. The company has a market cap of $74.41 billion, a price-to-earnings ratio of 13.20, a price-to-earnings-growth ratio of 0.97 and a beta of 0.98.

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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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