Efficient Advisors Acquires CVS Health Shares Amid Market Changes

Efficient Advisors LLC has recently acquired a stake in CVS Health Corporation (NYSE: CVS), purchasing 5,999 shares valued at approximately $414,000. This acquisition is part of a broader trend among institutional investors adjusting their positions in the pharmacy operator during the second quarter of 2023.

Several other firms have also increased their holdings in CVS Health. Notably, Jennison Associates LLC boosted its stake by an impressive 503.8% during the first quarter, acquiring an additional 1,582,257 shares. Jennison now holds a total of 1,896,341 shares, valued at around $128.5 million. Similarly, Cantor Fitzgerald Investment Advisors L.P. raised its stake by 1.6%, now owning 409,735 shares worth approximately $28.3 million.

Cerity Partners LLC also increased its position by 25%, bringing its total to 648,266 shares valued at about $43.9 million. Additionally, Brandywine Global Investment Management LLC raised its holdings by 20.1%, now owning 3,421,519 shares worth $231.8 million. Lastly, Skandinaviska Enskilda Banken AB publ lifted its stake by a striking 122.5%, resulting in ownership of 565,152 shares valued at approximately $38.3 million. Overall, institutional investors now hold 80.66% of CVS Health’s stock.

Insider Trading and Stock Performance

In related developments, CVS Health Director Anne A. Finucane sold 7,500 shares on August 20, 2023, at an average price of $71.02, totaling $532,650. Following this transaction, she retains 22,156 shares, valued at about $1.57 million. This sale represents a decline of 25.29% in her ownership stake. Corporate insiders currently hold 1.22% of the company’s stock.

CVS Health’s financial performance remains robust. On October 29, 2023, the company reported earnings of $1.60 per share for the last quarter, surpassing analysts’ expectations of $1.36 by $0.24. The company achieved revenue of $102.87 billion, significantly exceeding the anticipated $98.85 billion. This marks a 7.8% increase in revenue compared to the same quarter last year. CVS Health has set its fiscal year 2025 guidance at earnings per share between $6.550 and $6.650. Analysts project an average earnings per share of $5.89 for the current year.

Dividend and Analyst Ratings

CVS Health also announced a quarterly dividend of $0.665 per share, which was paid on November 3, 2023. Shareholders who were on record as of October 23 received this dividend, translating to an annualized dividend of $2.66 and a yield of 3.4%. The company’s payout ratio currently stands at 700%.

Research firms have recently shared their perspectives on CVS Health. Leerink Partners raised its price target from $86.00 to $95.00 and assigned an “outperform” rating. Conversely, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating. Baird R W upgraded CVS Health from “hold” to “strong-buy,” while Evercore ISI also increased its price objective to $95.00 with an “outperform” rating. Jefferies Financial Group raised its target from $92.00 to $98.00.

Currently, two research analysts rate CVS Health as a Strong Buy, while twenty-one recommend a Buy, and four suggest a Hold. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $89.45.

CVS Health Corporation operates across the United States, providing a range of health solutions through its Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The company continues to adapt to market dynamics while maintaining a focus on growth and shareholder value.