Investors Buy Large Volume of CVS Health Call Options (NYSE:CVS)

CVS Health Co. (NYSE:CVS) was the recipient of unusually large options trading on Monday. Traders acquired 56,549 call options on the company. This represents an increase of approximately 28% compared to the average volume of 44,235 call options.

CVS Health Trading Up 5.7 %

Shares of CVS traded up $3.02 during midday trading on Monday, hitting $56.21. 9,528,335 shares of the stock were exchanged, compared to its average volume of 11,333,778. The firm has a market cap of $70.74 billion, a P/E ratio of 13.50, a P/E/G ratio of 0.92 and a beta of 0.55. CVS Health has a 52-week low of $52.71 and a 52-week high of $83.25. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.59 and a current ratio of 0.80. The stock has a fifty day simple moving average of $59.23 and a 200 day simple moving average of $58.60.

CVS Health (NYSE:CVS) last posted its earnings results on Wednesday, November 6th. The pharmacy operator reported $1.09 EPS for the quarter, beating the consensus estimate of $1.08 by $0.01. The firm had revenue of $95.43 billion for the quarter, compared to analyst estimates of $92.72 billion. CVS Health had a return on equity of 10.72% and a net margin of 1.36%. CVS Health’s revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.21 earnings per share. On average, research analysts anticipate that CVS Health will post 5.48 EPS for the current fiscal year.

CVS Health Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, November 1st. Stockholders of record on Monday, October 21st were issued a $0.665 dividend. The ex-dividend date of this dividend was Monday, October 21st. This represents a $2.66 dividend on an annualized basis and a dividend yield of 4.73%. CVS Health’s payout ratio is 67.51%.

Institutional Trading of CVS Health

A number of large investors have recently bought and sold shares of the business. MidAtlantic Capital Management Inc. purchased a new position in shares of CVS Health during the third quarter worth about $25,000. Livelsberger Financial Advisory purchased a new position in shares of CVS Health in the 3rd quarter valued at approximately $31,000. Legacy Investment Solutions LLC purchased a new stake in shares of CVS Health during the third quarter worth approximately $31,000. Reston Wealth Management LLC acquired a new stake in shares of CVS Health during the third quarter worth $32,000. Finally, First Community Trust NA grew its position in CVS Health by 116.2% in the 2nd quarter. First Community Trust NA now owns 562 shares of the pharmacy operator’s stock valued at $33,000 after buying an additional 302 shares during the last quarter. Institutional investors and hedge funds own 80.66% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Royal Bank of Canada decreased their target price on shares of CVS Health from $68.00 to $58.00 and set an “outperform” rating for the company in a research note on Friday. UBS Group lifted their price target on shares of CVS Health from $60.00 to $62.00 and gave the stock a “neutral” rating in a research note on Thursday, November 7th. Cantor Fitzgerald reiterated a “neutral” rating and set a $62.00 target price on shares of CVS Health in a research note on Tuesday, October 1st. Wells Fargo & Company raised shares of CVS Health from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $60.00 to $66.00 in a research report on Monday. Finally, Deutsche Bank Aktiengesellschaft lowered their price target on shares of CVS Health from $64.00 to $63.00 and set a “hold” rating on the stock in a report on Friday, August 9th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and thirteen have given a buy rating to the company’s stock. According to MarketBeat.com, CVS Health presently has a consensus rating of “Moderate Buy” and an average target price of $72.78.

About CVS Health

CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services.