In the second quarter of 2023, Avantax Planning Partners Inc. increased its holdings in CVS Health Co. (NYSE:CVS) by 15.8%, as stated in their recent filing with the Securities and Exchange Commission (SEC). The institutional investor now owns 14,676 shares of the pharmacy operator’s stock, having acquired an additional 2,002 shares during the quarter. The total value of Avantax Planning Partners Inc.’s holdings in CVS Health is estimated to be $1,015,000 based on their most recent filing with the SEC.
CVS Health recently reported its quarterly earnings results for the period ending August 2nd, 2023. The pharmacy operator exceeded analysts’ expectations by reporting earnings per share (EPS) of $2.21 for the quarter, surpassing the consensus estimate of $2.12 by $0.09. The company’s revenue for the quarter was $88.92 billion, higher than analysts’ projected revenue of $86.41 billion. Comparing it to the same quarter in the previous year, CVS Health’s revenue increased by 10.3%. Despite this growth, its net margin remained at a modest 0.86%, while its return on equity stood at 15.43%.
Several research reports have been published about CVS Health recently. Barclays reduced their price target from $89.00 to $86.00 but maintained an “overweight” rating for the company in their research report released on August 3rd, 2023. Moreover, Royal Bank of Canada reaffirmed an “outperform” rating and set a price objective of $91.00 for shares of CVS Health on August 18th, 2023.
Truist Financial also lowered its target price from $103.00 to $98.00 but maintained a “buy” rating on CVS Health stock within their research report on August 3rd, 2023. However, Edward Jones downgraded CVS Health from a “buy” rating to a “hold” rating in their report published on August 17th, 2023. Additionally, JPMorgan Chase & Co. decreased their price target on CVS Health from $114.00 to $106.00 in a research report issued on July 7th, 2023.
In total, three equities research analysts have assigned a hold rating to CVS Health stock, while fifteen have given it a buy rating. According to data from Bloomberg, the stock currently has an average rating of “Moderate Buy” and an average target price of $95.28.
Based on the performance and market response reflected in these recent developments, CVS Health continues to be an attractive investment option for many institutional investors like Avantax Planning Partners Inc. With its positive quarterly earnings results and optimistic analyst ratings, the company is expected to post strong earnings per share for the current year.
Updated on: 04/12/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Neutral
DCF: Strong Buy
11:00 PM (UTC)
Date:03 December, 2023
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Investor Confidence and Insider Transactions Surrounding CVS Health
On September 26, 2023, it was reported that several hedge funds had made changes to their positions in the renowned pharmacy operator, CVS Health. Cantor Fitzgerald Investment Advisor L.P increased its ownership of CVS Health shares by a staggering 92.9% during the first quarter of the year. With this significant increase, they now hold a total of 377,875 shares valued at $38,245,000. Such a substantial investment demonstrates the confidence and belief that Cantor Fitzgerald has in the future success of the pharmacy operator.
Not only did Cantor Fitzgerald Investment Advisor L.P show faith in CVS Health’s potential, but other entities such as United Bank and Loomis Sayles & Co. LP also decided to increase their stake in the company during this time period. United Bank boosted its position by 7.2%, accumulating 18,658 shares with a value of $1,888,000. Similarly, Loomis Sayles & Co. LP saw fit to raise their holdings by an astonishing 4,063.8%, resulting in them now owning 12,075 shares worth $1,222,000.
Furthermore,Zions Bancorporation N.A., another institutional investor who recognized CVS Health’s potential for growth and profitability raised its holdings by an impressive 116.9%. The position now comprises 2,572 shares with an estimated worth of $260,000.
In contrast to these increased investments from various hedge funds and institutional investors was Ergoteles LLC’s new position in CVS Health’s stock during the first quarter of this year. Ergoteles LLC acquired a significant holding with an approximate value amounting to $1,551，000.
Overall,Hedge funds and other institutional investors combined own approximately 75.99% of CVS Health’s stock，demonstrating strong confidence placed in the company.
Amidst this plethora of investment activity surrounding CVS Health lies an interesting development involving the Senior Vice President, James David Clark. On August 3rd of this year, Clark sold a substantial amount of CVS Health’s stock, specifically 25,759 shares. The sale took place at an average price of $74.92 per share, resulting in a total transaction value of $1,929,864.28. Following the completion of this sale，Clark now owns 4,698 shares in the company with an estimated value of $351，974.16.
The aforementioned transaction was disclosed in a document filed with the Securities and Exchange Commission (SEC). Interested parties can access further details through the SEC website. It is important to note that insiders currently own 0.25% of CVS Health’s stock.
As investors closely monitor CVS Health’s developments and activities within the financial markets, it is worth noting that on Tuesday, September 26th, shares of CVS opened at $72.57 on the New York Stock Exchange (NYSE). With a market capitalization standing at $93.21 billion and a price-to-earnings ratio of 31.83, CVS Health has garnered significant attention from market participants due to its impressive performance. Additionally, its beta coefficient stands at 0.63, indicating relatively lower volatility compared to the broader market.
Examining key financial ratios associated with CVS Health reveals interesting insights into its operational and financial health. With a debt-to-equity ratio of 0.84,furthermore,a quick ratio of 0.64 indicates moderately healthy liquidity for short-term obligations while maintaining a current ratio of 0。86 suggests overall stability in meeting immediate financial requirements.
Notably,the company has experienced fluctuations between its yearly low and high prices over the past year.With figures ranging from $64。62 being the lowest point to $104。83 representing its peak.However,the firm’s50-day moving average price rests at $70。92,and its 200-day moving average price sits at $71。40.
As CVS Health continues its operations within the highly competitive healthcare industry, investors and stakeholders alike are keeping a close watch on the company’s strategic moves and performance. The mix of hedge fund activity, insider transactions, and key financial metrics paints a complex picture that further fuels discussions regarding CVS Health’s potential trajectory in the market.