CVS Health (NYSE:CVS) Sets New 52-Week High – Should You Buy?

CVS Health Corporation (NYSE:CVS)’s share price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $98.61 and last traded at $98.1440, with a volume of 4587487 shares traded. The stock had previously closed at $97.06.

Key Stories Impacting CVS Health

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: CVS Caremark expanded coverage options for GLP-1 weight-loss medications, which should improve affordability and access for members while supporting retention and utilization in a key growth category. CVS Caremark Delivers Affordability and Access to GLP-1 Weight Management Medications With Expanded Coverage Options
• Positive Sentiment: CVS is being viewed as a turnaround story after stronger recent results, with commentary highlighting improving insurance performance and better retail pharmacy share, which may be reinforcing bullish sentiment. CVS Offers A Compelling Turnaround Opportunity Not Seen In Years
• Positive Sentiment: CVS received outside validation from analysts and research coverage, including a higher price target from Truist and “Buy” support, suggesting Wall Street sees more upside from current levels. CVS Health (CVS): One of the Best Blue Chip Stocks Under $100 to Buy Now
• Neutral Sentiment: CVS announced recognition for technology that improves medication safety and patient care, which supports its brand but is unlikely to drive near-term earnings by itself. CVS Health Recognized for Technology That Improves Medication Safety and Patient Care
• Neutral Sentiment: CVS also tapped a new CFO for health care delivery and launched an AI learning initiative, both of which point to ongoing operational changes but do not yet materially change the financial outlook. CVS Health taps new CFO of health care delivery
• Negative Sentiment: Headline risk remains from a lawsuit by major hospitals over an alleged drug-discount scheme, adding another layer of legal and PBM scrutiny that could pressure sentiment. Major hospitals sue CVS over alleged drug discount scheme
• Negative Sentiment: Broader scrutiny of CVS’s pharmacy benefit manager practices continues, which could weigh on valuation even as the company expands GLP-1 access. CVS Health (CVS) Valuation Check As GLP 1 Access Expands And PBM Scrutiny Intensifies

Analysts Set New Price Targets

Several research firms recently weighed in on CVS. Weiss Ratings reissued a “hold (c)” rating on shares of CVS Health in a research note on Friday, May 8th. Mizuho lifted their price target on shares of CVS Health from $110.00 to $115.00 and gave the stock an “outperform” rating in a research report on Monday. JPMorgan Chase & Co. upped their price objective on shares of CVS Health from $101.00 to $111.00 and gave the company an “overweight” rating in a research report on Tuesday, May 12th. Leerink Partners reissued an “outperform” rating and issued a $98.00 target price on shares of CVS Health in a research note on Thursday, March 5th. Finally, HSBC increased their price target on CVS Health from $83.00 to $85.00 and gave the stock a “hold” rating in a report on Tuesday, May 5th. Twenty-two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $100.68.

CVS Health Trading Up 1.1%

The firm has a market capitalization of $125.16 billion, a price-to-earnings ratio of 43.21, a price-to-earnings-growth ratio of 0.95 and a beta of 0.62. The business’s fifty day moving average is $85.19 and its 200 day moving average is $80.32. The company has a quick ratio of 0.66, a current ratio of 0.87 and a debt-to-equity ratio of 0.78.

CVS Health (NYSE:CVS) last released its earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.21 by $0.36. CVS Health had a return on equity of 11.88% and a net margin of 0.72%.The firm had revenue of $100.43 billion during the quarter, compared to analysts’ expectations of $94.99 billion. During the same quarter in the prior year, the company earned $2.25 EPS. The company’s revenue was up 6.2% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. Equities analysts predict that CVS Health Corporation will post 7.44 earnings per share for the current year.

CVS Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, May 4th. Stockholders of record on Thursday, April 23rd were issued a $0.665 dividend. The ex-dividend date was Thursday, April 23rd. This represents a $2.66 annualized dividend and a dividend yield of 2.7%. CVS Health’s dividend payout ratio (DPR) is presently 117.18%.

Insider Transactions at CVS Health

In related news, EVP Tilak Mandadi sold 69,551 shares of the company’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the sale, the executive vice president owned 10,133 shares in the company, valued at approximately $907,714.14. This represents a 87.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Larry Robbins sold 370,462 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $93.45, for a total value of $34,619,673.90. Following the transaction, the director directly owned 4,824,799 shares of the company’s stock, valued at $450,877,466.55. This trade represents a 7.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 3,441,551 shares of company stock worth $323,703,977. 0.85% of the stock is owned by company insiders.

Institutional Trading of CVS Health

A number of hedge funds have recently made changes to their positions in CVS. Norges Bank bought a new stake in shares of CVS Health during the 4th quarter worth about $1,666,265,000. Wellington Management Group LLP grew its position in CVS Health by 193.2% during the fourth quarter. Wellington Management Group LLP now owns 18,564,392 shares of the pharmacy operator’s stock worth $1,473,270,000 after buying an additional 12,233,675 shares in the last quarter. Amundi increased its position in shares of CVS Health by 95.3% in the third quarter. Amundi now owns 7,453,980 shares of the pharmacy operator’s stock worth $572,665,000 after purchasing an additional 3,637,943 shares during the period. Capital Research Global Investors raised its stake in CVS Health by 24.5% in the third quarter. Capital Research Global Investors now owns 11,469,250 shares of the pharmacy operator’s stock valued at $864,667,000 after purchasing an additional 2,253,531 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in CVS Health by 70.5% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,294,134 shares of the pharmacy operator’s stock worth $399,125,000 after purchasing an additional 2,188,307 shares during the period. 80.66% of the stock is owned by institutional investors and hedge funds.

About CVS Health

CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.

Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.