CVS Health Sees Adjustments in Ownership as 2nd Quarter Unfolds

CVS Pharmacy
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In the second quarter of this year, Louisiana State Employees Retirement System made some strategic adjustments to its holdings, particularly regarding CVS Health Co. (NYSE:CVS). According to their 13F filing with the Securities and Exchange Commission (SEC), they reduced their position in CVS Health by 5.0%. This move involved selling 4,200 shares, leaving them with 79,300 shares in the pharmacy operator’s stock. As of their most recent filing with the SEC, the total worth of these holdings amounted to approximately $5,482,000.

It’s worth noting that this wasn’t the only change in ownership among institutional investors and hedge funds. Morgan Stanley, for example, increased its stake in CVS Health by 10.9% during the 4th quarter, now holding a substantial 33,576,388 shares valued at $3,128,984,000. Moneta Group Investment Advisors LLC also made a significant move, growing their position by a staggering 103,371.0% during the 4th quarter. They now own 15,547,559 shares valued at $1,448,877,000.

Norges Bank took an entirely different approach by purchasing a new stake in CVS Health during the 4th quarter, an investment worth $1,425,416,000. FMR LLC also increased its position in CVS Health by 31.0% during the first quarter, owning 13,666,949 shares valued at $1,015,591,000. Charles Schwab Investment Management Inc. joined the ranks of those making adjustments, boosting their holdings in CVS Health by 1.3% during the fourth quarter. They currently possess 12,055,009 shares valued at $1,103,488,000. It’s important to highlight that approximately 75.99% of the stock is currently held by hedge funds and other institutional investors.

CVS Health Sees Adjustments in Ownership as 2nd Quarter Unfolds
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Despite these changes, CVS Health experienced a 1.7% decrease in trading, with shares on the NYSE opening at $71.34 on Wednesday. The company has a market capitalization of $91.63 billion and boasts a P/E ratio of 31.29, a PEG ratio of 1.38, and a beta of 0.63. Over the past year, CVS Health’s stock has ranged from a low of $64.62 to a high of $104.83. The company’s 50-day moving average currently stands at $70.90, while its 200-day moving average is $71.36. In terms of financial stability, CVS Health maintains a debt-to-equity ratio of 0.84, a current ratio of 0.86, and a quick ratio of 0.64.

CVS Health reported its quarterly earnings data on Wednesday, August 2nd. During the quarter, the pharmacy operator posted earnings per share (EPS) of $2.21, surpassing the consensus estimate of $2.12 by $0.09. Furthermore, CVS Health recorded revenue of $88.92 billion, surpassing the consensus estimate of $86.41 billion. The company achieved a net margin of 0.86% and a return on equity of 15.43%. Compared to the same quarter in the previous year, CVS Health’s quarterly revenue saw a 10.3% increase. During the same period last year, the company reported earnings per share of $2.40. Market analysts anticipate that CVS Health Co. will post 8.61 EPS for the current year.

CVS Health also announced a quarterly dividend, scheduled to be paid on Wednesday, November 1st. Shareholders of record on Friday, October 20th will receive a dividend of $0.605. The ex-dividend date for this dividend is Thursday, October 19th. This translates to an annualized dividend of $2.42 and a yield of 3.39%. Presently, CVS Health boasts a dividend payout ratio of 106.14%.

Numerous research analysts have shared their insights into CVS shares. Edward Jones, for instance, downgraded CVS Health from a “buy” rating to a “hold” rating in a research report on Thursday, August 17th. Raymond James reduced their price target on CVS Health from $90.00 to $85.00 while maintaining an “outperform” rating for the company in a research note on Friday, August 4th. Royal Bank of Canada reaffirmed an “outperform” rating and established a $91.00 price target on CVS Health’s stock in a research note issued on Friday, August 18th. Truist Financial also lowered their price target on CVS Health from $103.00 to $98.00 and assigned a “buy” rating to the stock in a research note on Thursday, August 3rd. Piper Sandler decreased their price objective on CVS Health from $85.00 to $82.00, maintaining an “overweight” rating for the company in a research note released on Friday, September

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