CVS Health (NYSE:CVS) Shares Gap Up After Earnings Beat

CVS Health Co. (NYSE:CVS) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $66.71, but opened at $72.50. CVS Health shares last traded at $71.56, with a volume of 3,571,146 shares traded.

The pharmacy operator reported $2.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.63. CVS Health had a return on equity of 9.11% and a net margin of 1.24%. The company had revenue of $94.59 billion for the quarter, compared to analyst estimates of $93.07 billion. During the same period in the prior year, the company posted $1.31 EPS. The firm’s quarterly revenue was up 7.0% compared to the same quarter last year.

CVS Health Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 1st. Shareholders of record on Tuesday, April 22nd were paid a dividend of $0.665 per share. The ex-dividend date of this dividend was Tuesday, April 22nd. This represents a $2.66 dividend on an annualized basis and a yield of 3.94%. CVS Health’s payout ratio is 72.68%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on CVS shares. Robert W. Baird boosted their price objective on shares of CVS Health from $51.00 to $71.00 and gave the company a “neutral” rating in a report on Tuesday, April 15th. JPMorgan Chase & Co. increased their price objective on CVS Health from $80.00 to $81.00 and gave the company an “overweight” rating in a report on Tuesday, February 18th. UBS Group lifted their target price on CVS Health from $67.00 to $71.00 and gave the stock a “neutral” rating in a report on Friday. Cantor Fitzgerald upgraded shares of CVS Health from a “neutral” rating to an “overweight” rating in a report on Wednesday, February 12th. Finally, StockNews.com upgraded shares of CVS Health from a “sell” rating to a “hold” rating in a research note on Thursday, February 13th. Four investment analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $72.69.

Insider Activity

In other CVS Health news, SVP James David Clark sold 7,513 shares of the firm’s stock in a transaction that occurred on Wednesday, March 5th. The stock was sold at an average price of $66.35, for a total value of $498,487.55. Following the sale, the senior vice president now directly owns 8,394 shares of the company’s stock, valued at approximately $556,941.90. This trade represents a 47.23 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael F. Mahoney bought 30,000 shares of CVS Health stock in a transaction dated Tuesday, February 18th. The shares were acquired at an average cost of $66.70 per share, with a total value of $2,001,000.00. Following the completion of the purchase, the director now owns 39,356 shares in the company, valued at approximately $2,625,045.20. This trade represents a 320.65 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 1.22% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Ridgewood Investments LLC raised its holdings in shares of CVS Health by 255.7% during the fourth quarter. Ridgewood Investments LLC now owns 626 shares of the pharmacy operator’s stock valued at $28,000 after acquiring an additional 450 shares during the last quarter. Stonebridge Financial Group LLC acquired a new position in CVS Health in the 4th quarter valued at $28,000. Hopwood Financial Services Inc. purchased a new position in CVS Health in the 4th quarter valued at $29,000. McIlrath & Eck LLC boosted its stake in CVS Health by 32.6% during the 4th quarter. McIlrath & Eck LLC now owns 707 shares of the pharmacy operator’s stock worth $32,000 after purchasing an additional 174 shares during the last quarter. Finally, Sierra Ocean LLC grew its holdings in shares of CVS Health by 584.8% during the first quarter. Sierra Ocean LLC now owns 719 shares of the pharmacy operator’s stock worth $49,000 after buying an additional 614 shares in the last quarter. Institutional investors and hedge funds own 80.66% of the company’s stock.

CVS Health Trading Down 2.8 %

The stock has a market capitalization of $85.09 billion, a PE ratio of 18.44, a P/E/G ratio of 0.98 and a beta of 0.57. The company’s 50 day moving average price is $66.72 and its two-hundred day moving average price is $58.87. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.81 and a quick ratio of 0.60.

About CVS Health

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.