CVS Health (NYSE:CVS) Shares Gap Down After Analyst Downgrade

CVS Health Corporation (NYSE:CVS) shares gapped down prior to trading on Tuesday after Bank of America lowered their price target on the stock from $100.00 to $95.00. The stock had previously closed at $83.87, but opened at $75.39. Bank of America currently has a buy rating on the stock. CVS Health shares last traded at $74.7420, with a volume of 11,895,453 shares changing hands.

CVS has been the subject of a number of other reports. The Goldman Sachs Group upped their target price on CVS Health from $93.00 to $95.00 and gave the company a “buy” rating in a research report on Wednesday, December 10th. Wall Street Zen downgraded CVS Health from a “buy” rating to a “hold” rating in a research report on Saturday, November 1st. Wells Fargo & Company lowered their target price on CVS Health from $103.00 to $102.00 and set an “overweight” rating for the company in a report on Thursday, November 13th. Evercore ISI increased their price target on CVS Health from $85.00 to $95.00 and gave the stock an “outperform” rating in a report on Thursday, October 30th. Finally, UBS Group reiterated an “outperform” rating on shares of CVS Health in a research note on Wednesday, December 10th. Twenty investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $94.86.

More CVS Health News

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

• Neutral Sentiment: Analyst forecasts page shows updated price-targets and consensus projections that investors will watch for guidance changes after recent headlines. CVS Health Corporation (CVS) Stock Forecasts
• Neutral Sentiment: Zacks notes CVS is a trending ticker and flags fundamentals and recent attention — useful background but not new catalysts. CVS Health Corporation (CVS) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Zacks Analyst Blog mention (broader market context); not a direct CVS catalyst but part of investor chatter. The Zacks Analyst Blog Microsoft, Anheuser-Busch CVS, and Stran & Co
• Negative Sentiment: Barron’s reports Humana, UnitedHealth and CVS shares plunged after the administration proposed keeping Medicare Advantage rates roughly flat, which trims revenue expectations for insurers and PBMs. Humana, UnitedHealth, and CVS Stocks Plunge After Medicare Rates Blow
• Negative Sentiment: CNBC: investors sold health insurers and related stocks in extended trading after the Trump administration proposed nearly flat Medicare Advantage rates, hitting CVS shares hard. Health insurers tumble after Trump administration proposes keeping Medicare Advantage rates flat next year
• Negative Sentiment: Reuters reports the administration’s draft would raise payments to insurers by roughly 0.09% on average — a near-flat change that lowers the revenue outlook for MA players and PBMs like CVS Caremark. Trump Administration proposes keeping steady Medicare rates paid to insurers, WSJ reports
• Negative Sentiment: Investing.com coverage highlights the market reaction: CVS and other health names tumbled on the lower Medicare rate proposal, signaling investor worry about near-term top-line pressure. CVS Health, UnitedHealth Group stocks tumble on lower Medicare rate proposal
• Negative Sentiment: HealthCareDive reports a House Judiciary investigation alleges CVS shut out rival pharmacy hubs — increasing regulatory and legal risk that could pressure margins and contracts. CVS accused of shutting out rival pharmacy hubs in House Judiciary investigation
• Negative Sentiment: FierceHealthcare summarizes a House report alleging CVS sought to stifle pharmacy-hub competition — a potential source of fines, contract limits, or remediation that investors will watch. House report alleges CVS aimed to stifle pharmacy hub competition
• Negative Sentiment: BizJournal profile notes CVS is simultaneously positioning as a healthcare partner while fighting Congress, the FTC and courts — reinforcing regulatory uncertainty for investors. Woonsocket-based CVS battles Congress, FTC and courts while positioning itself as healthcare reform partner

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. SOA Wealth Advisors LLC. lifted its holdings in shares of CVS Health by 36.9% in the third quarter. SOA Wealth Advisors LLC. now owns 486 shares of the pharmacy operator’s stock valued at $37,000 after purchasing an additional 131 shares in the last quarter. Alteri Wealth LLC raised its position in shares of CVS Health by 3.2% in the third quarter. Alteri Wealth LLC now owns 4,195 shares of the pharmacy operator’s stock valued at $316,000 after purchasing an additional 131 shares during the period. TOWER TRUST & INVESTMENT Co raised its stake in shares of CVS Health by 0.8% during the 4th quarter. TOWER TRUST & INVESTMENT Co now owns 15,708 shares of the pharmacy operator’s stock valued at $1,247,000 after purchasing an additional 132 shares during the period. Holistic Financial Partners lifted its stake in CVS Health by 4.1% in the 3rd quarter. Holistic Financial Partners now owns 3,397 shares of the pharmacy operator’s stock worth $256,000 after purchasing an additional 133 shares in the last quarter. Finally, CYBER HORNET ETFs LLC increased its position in shares of CVS Health by 4.1% in the third quarter. CYBER HORNET ETFs LLC now owns 3,442 shares of the pharmacy operator’s stock worth $259,000 after purchasing an additional 134 shares during the last quarter. 80.66% of the stock is currently owned by institutional investors and hedge funds.

CVS Health Stock Down 11.5%

The firm has a market cap of $94.21 billion, a PE ratio of 195.50, a P/E/G ratio of 0.76 and a beta of 0.48. The stock has a 50-day simple moving average of $79.17 and a two-hundred day simple moving average of $74.97. The company has a quick ratio of 0.63, a current ratio of 0.83 and a debt-to-equity ratio of 0.83.

CVS Health (NYSE:CVS) last issued its earnings results on Wednesday, October 29th. The pharmacy operator reported $1.60 EPS for the quarter, topping analysts’ consensus estimates of $1.36 by $0.24. The company had revenue of $102.87 billion for the quarter, compared to analysts’ expectations of $98.85 billion. CVS Health had a net margin of 0.12% and a return on equity of 11.45%. The firm’s revenue was up 7.8% compared to the same quarter last year. During the same quarter last year, the company earned $1.09 EPS. CVS Health has set its FY 2025 guidance at 6.550-6.650 EPS. Analysts expect that CVS Health Corporation will post 5.89 earnings per share for the current year.

CVS Health Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Thursday, January 22nd will be given a dividend of $0.665 per share. The ex-dividend date of this dividend is Thursday, January 22nd. This represents a $2.66 annualized dividend and a yield of 3.6%. CVS Health’s dividend payout ratio is presently 700.00%.

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.