Traders Buy Large Volume of Put Options on CVS Health (NYSE:CVS)

CVS Health Co. (NYSE:CVS) saw some unusual options trading on Wednesday. Stock traders purchased 92,977 put options on the company. This is an increase of 121% compared to the average daily volume of 42,006 put options.

CVS Health Trading Down 1.5 %

CVS opened at $54.93 on Thursday. The company has a market cap of $68.96 billion, a P/E ratio of 9.65, a price-to-earnings-growth ratio of 0.88 and a beta of 0.56. The company has a fifty day moving average price of $71.95 and a two-hundred day moving average price of $73.09. The company has a current ratio of 0.81, a quick ratio of 0.61 and a debt-to-equity ratio of 0.78. CVS Health has a 1-year low of $53.70 and a 1-year high of $83.25.

CVS Health (NYSE:CVS) last posted its quarterly earnings results on Wednesday, May 1st. The pharmacy operator reported $1.31 earnings per share for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.38). CVS Health had a return on equity of 13.53% and a net margin of 2.03%. The firm had revenue of $88.44 billion for the quarter, compared to analyst estimates of $89.33 billion. During the same period last year, the company posted $2.20 earnings per share. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. Analysts predict that CVS Health will post 7.03 EPS for the current fiscal year.

CVS Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 1st. Shareholders of record on Monday, April 22nd were issued a dividend of $0.665 per share. The ex-dividend date of this dividend was Friday, April 19th. This represents a $2.66 annualized dividend and a yield of 4.84%. CVS Health’s payout ratio is 46.75%.

Analyst Upgrades and Downgrades

CVS has been the subject of a number of research analyst reports. Cantor Fitzgerald cut CVS Health from an “overweight” rating to a “neutral” rating and lowered their price target for the stock from $87.00 to $58.00 in a report on Wednesday, May 1st. TD Cowen downgraded CVS Health from a “buy” rating to a “hold” rating and lowered their target price for the stock from $99.00 to $59.00 in a research note on Tuesday. Barclays reduced their price target on shares of CVS Health from $78.00 to $63.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 2nd. Argus dropped their price objective on shares of CVS Health from $100.00 to $80.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, SVB Leerink reiterated a “market perform” rating and issued a $60.00 price target (down from $87.00) on shares of CVS Health in a research note on Wednesday, May 1st. Nine equities research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $76.75.

Insider Activity

In other news, EVP Prem S. Shah sold 29,473 shares of the business’s stock in a transaction that occurred on Friday, February 16th. The stock was sold at an average price of $76.95, for a total transaction of $2,267,947.35. Following the completion of the sale, the executive vice president now owns 39,765 shares in the company, valued at $3,059,916.75. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, EVP Prem S. Shah sold 29,473 shares of CVS Health stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $76.95, for a total value of $2,267,947.35. Following the completion of the sale, the executive vice president now directly owns 39,765 shares in the company, valued at $3,059,916.75. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Edward J. Ludwig bought 1,000 shares of CVS Health stock in a transaction dated Thursday, May 2nd. The shares were bought at an average cost of $53.88 per share, for a total transaction of $53,880.00. Following the completion of the acquisition, the director now owns 21,630 shares in the company, valued at approximately $1,165,424.40. The disclosure for this purchase can be found here. Insiders own 0.24% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Atticus Wealth Management LLC increased its holdings in CVS Health by 149.0% during the 4th quarter. Atticus Wealth Management LLC now owns 366 shares of the pharmacy operator’s stock worth $29,000 after purchasing an additional 219 shares in the last quarter. USA Financial Formulas grew its holdings in CVS Health by 573.2% during the fourth quarter. USA Financial Formulas now owns 377 shares of the pharmacy operator’s stock worth $30,000 after buying an additional 321 shares in the last quarter. Cornerstone Planning Group LLC lifted its stake in CVS Health by 111.5% during the 3rd quarter. Cornerstone Planning Group LLC now owns 461 shares of the pharmacy operator’s stock valued at $32,000 after acquiring an additional 243 shares in the last quarter. Ables Iannone Moore & Associates Inc. purchased a new position in CVS Health during the 4th quarter worth $32,000. Finally, Creekmur Asset Management LLC bought a new stake in shares of CVS Health in the 4th quarter worth $34,000. 80.66% of the stock is currently owned by institutional investors and hedge funds.

CVS Health Company Profile

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.