Two large managers open fresh CVS stakes
BlackRock Inc. acquired a new position in CVS Health Corporation in the second quarter, buying 123,223,409 shares valued at approximately $12,747,462,000, according to a Holdings Channel report. The stake represented about 0.10% of the pharmacy operator as of BlackRock's most recent SEC filing. Separately, Pzena Investment Management LLC disclosed a new 11,769,536-share position worth about $1,217,558,000 in its 13F filing for the same quarter. Pzena's holding made CVS Health 3.6% of its portfolio and its fourth-largest position, equivalent to roughly 0.92% of the company.
Other institutional managers adjust holdings
Several other funds reshaped their CVS positions in recent quarters. Vanguard Group lifted its stake by 1.5% in the fourth quarter, accumulating 120,709,530 shares worth about $9,579,508,000, while State Street Corp grew its position by 2.1% to 60,183,743 shares valued at $4,776,182,000. Capital International Investors raised its holding by 3.4% to 27,592,356 shares ($2,189,793,000), and Norges Bank opened a new fourth-quarter stake worth approximately $1,666,265,000. Morgan Stanley lifted its position by 6.3% during the same period, ending with 20,373,774 shares valued at $1,616,863,000. In the second quarter, Handelsbanken Fonder AB increased its stake by 83.6% to 1,089,694 shares ($112,729,000). Hedge funds and other institutional investors collectively own 80.66% of CVS Health's stock.
Insiders trim exposure
Director Larry Robbins sold 1,018,000 shares on May 20th at an average price of $93.82, a transaction valued at $95,508,760.00. The sale reduced his direct holding by 16.38%, leaving him with 5,195,261 shares valued at $487,419,387.02. Company insiders own 0.85% of CVS Health stock.
Analysts lift price targets amid second-quarter results
Several Wall Street analysts raised their CVS price targets in recent months. Sanford C. Bernstein increased its objective from $94.00 to $106.00 with an outperform rating on May 12th, while Argus raised its target from $90.00 to $104.00 with a buy rating on May 14th. TD Cowen lifted its target from $105.00 to $110.00 on May 11th, and Bank of America boosted its objective from $100.00 to $110.00 with a buy rating on June 22nd. Wall Street Zen upgraded the stock from buy to strong-buy on August 8th. Across 24 covering analysts, 22 rate CVS a Buy and two rate it Hold, producing a consensus "Moderate Buy" with an average price target of $106.75.
Quarterly earnings and trading snapshot
CVS Health most recently reported quarterly earnings on August 5th, posting $2.58 per share against a $1.87 consensus estimate and revenue of $106.10 billion versus expectations of $100.03 billion. Quarterly revenue rose 7.3% year over year. Shares opened at $93.99 on Tuesday, with a 52-week range of $69.40 to $110.68, a market capitalization of $120.21 billion, a P/E ratio of 24.87, and a beta of 0.61. The stock traded down 3.3% in one recent session and carried a 50-day moving average of $102.46 and a 200-day moving average of $88.41.
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