CVS Health (NYSE:CVS) Stock Price Up 3.1% – Still a Buy?

CVS Health Corporation (NYSE:CVS)’s share price traded up 3.1% during trading on Wednesday. The stock traded as high as $88.82 and last traded at $89.1440. 919,503 shares were traded during mid-day trading, a decline of 89% from the average session volume of 8,265,509 shares. The stock had previously closed at $86.43.

More CVS Health News

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

• Positive Sentiment: Aetna’s Medicare Advantage quality ratings are a key positive. More than 69% of Aetna’s Medicare Advantage members are enrolled in plans rated four stars or higher for 2027. Strong CMS Star Ratings could support member retention, enrollment and Medicare Advantage economics, making this the most significant near-term catalyst. Aetna 2027 Star Ratings Reflect Strong Clinical Quality and Member Experience
• Positive Sentiment: Investors are positioning for further gains. Traders purchased about 23,271 CVS call options, roughly 33% above typical call volume. This signals increased bullish speculation, although options activity is not a guarantee of sustained share-price appreciation. Traders Buy Large Volume of Call Options on CVS Health
• Positive Sentiment: Long-term pharmacy operations gained greater supply-chain visibility. CVS extended pharmaceutical distribution agreements with Cardinal Health and McKesson through 2032, supporting continuity for its nationwide retail pharmacy network. The company is also expanding access through a pharmacy-focused Boston location.
• Neutral Sentiment: Analysts see potential recovery, but the valuation case remains execution-dependent. Commentary points to recovering Aetna margins, improving pharmacy trends and momentum in CVS Health Services. CVS trades at a discount to industry peers, but investors are watching whether its integrated-care strategy can translate into durable earnings growth.
• Negative Sentiment: 340B pricing pressure remains a headwind. Persistent challenges from the federal 340B drug-pricing program could weigh on pharmacy profitability and offset some of the gains from improved insurance and health-services performance.

Wall Street Analyst Weigh In

CVS has been the topic of several research reports. Weiss Ratings upgraded shares of CVS Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 5th. HSBC reissued a “hold” rating and issued a $103.00 price objective on shares of CVS Health in a report on Monday, July 6th. BMO Capital Markets set a $112.00 target price on shares of CVS Health in a report on Wednesday, September 9th. Barclays upped their target price on CVS Health from $106.00 to $108.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Finally, Royal Bank Of Canada upped their price target on shares of CVS Health from $107.00 to $113.00 and gave the stock an “outperform” rating in a report on Thursday, July 9th. Twenty-two analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $107.24.

CVS Health Stock Down 0.0%

The company has a market capitalization of $112.43 billion, a price-to-earnings ratio of 23.26, a P/E/G ratio of 0.82 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.87 and a quick ratio of 0.66. The firm’s fifty day moving average price is $93.10 and its 200-day moving average price is $92.41.

CVS Health (NYSE:CVS) last issued its quarterly earnings data on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, topping analysts’ consensus estimates of $1.87 by $0.71. The business had revenue of $106.10 billion for the quarter, compared to analyst estimates of $100.03 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%.CVS Health’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.81 EPS. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. Sell-side analysts expect that CVS Health Corporation will post 8.02 earnings per share for the current fiscal year.

CVS Health Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Thursday, October 22nd will be given a $0.6650 dividend. This represents a $2.66 annualized dividend and a yield of 3.0%. The ex-dividend date is Thursday, October 22nd. CVS Health’s dividend payout ratio is 70.37%.

Institutional Trading of CVS Health

Several institutional investors have recently modified their holdings of CVS. BlackRock Inc. bought a new position in CVS Health during the 2nd quarter worth $12,747,462,000. State Street Corp increased its stake in shares of CVS Health by 26.3% in the second quarter. State Street Corp now owns 74,927,064 shares of the pharmacy operator’s stock valued at $7,751,205,000 after buying an additional 15,604,883 shares during the period. Bank of America Corp DE increased its stake in shares of CVS Health by 148.0% in the second quarter. Bank of America Corp DE now owns 23,188,670 shares of the pharmacy operator’s stock valued at $2,398,868,000 after buying an additional 13,836,701 shares during the period. Pzena Investment Management LLC bought a new position in shares of CVS Health during the second quarter worth about $1,217,558,000. Finally, Wellington Management Group LLP lifted its stake in shares of CVS Health by 49.8% in the second quarter. Wellington Management Group LLP now owns 33,801,113 shares of the pharmacy operator’s stock worth $3,496,725,000 after acquiring an additional 11,233,381 shares during the period. Institutional investors own 80.66% of the company’s stock.

CVS Health Company Profile

CVS Health Corp. is an integrated health care company that provides pharmacy, insurance and health services primarily in the United States. Its operations are designed to connect consumers, health plans, health care providers and pharmacy services across multiple points of care.

The company’s major businesses include CVS Pharmacy retail locations, prescription fulfillment and consumer health products; CVS Caremark, a pharmacy benefit management business; and Aetna, which offers health insurance products and related services for employers, individuals, government programs and other organizations.