On March 8, 2023 at 15:12:37 ET an unusually large $1,515.00K block of Put contracts in CVS Health (CVS) was sold, with a strike price of $110.00 / share, expiring in 100 days (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 4.16 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in CVS options.
This trade was first picked up on Fintel’s real time Options Flow tool, where all large block option trades are tracked.
Analyst Price Forecast Suggests 43.93% Upside
As of March 8, 2023, the average one-year price target for CVS Health is $115.79. The forecasts range from a low of $95.95 to a high of $150.15. The average price target represents an increase of 43.93% from its latest reported closing price of $80.45.
The projected annual non-GAAP EPS is $8.94.
What is the Fund Sentiment?
There are 3880 funds or institutions reporting positions in CVS Health. This is an increase of 93 owner(s) or 2.46% in the last quarter. Average portfolio weight of all funds dedicated to CVS is 0.58%, a decrease of 13.29%. Total shares owned by institutions decreased in the last three months by 0.16% to 1,263,501K shares. The put/call ratio of CVS is 0.59, indicating a bullish outlook.
What are large shareholders doing?
Capital World Investors holds 56,540K shares representing 4.40% ownership of the company. In it’s prior filing, the firm reported owning 60,897K shares, representing a decrease of 7.71%. The firm decreased its portfolio allocation in CVS by 13.86% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 39,942K shares representing 3.11% ownership of the company. In it’s prior filing, the firm reported owning 39,154K shares, representing an increase of 1.97%. The firm decreased its portfolio allocation in CVS by 7.94% over the last quarter.
AWSHX – WASHINGTON MUTUAL INVESTORS FUND holds 34,597K shares representing 2.69% ownership of the company. In it’s prior filing, the firm reported owning 32,147K shares, representing an increase of 7.08%. The firm increased its portfolio allocation in CVS by 9.57% over the last quarter.
BBCPX – Bridge Builder Core Plus Bond Fund holds 33,508K shares representing 2.61% ownership of the company. In it’s prior filing, the firm reported owning 35,903K shares, representing a decrease of 7.15%. The firm increased its portfolio allocation in CVS by 2.60% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 30,375K shares representing 2.37% ownership of the company. In it’s prior filing, the firm reported owning 29,760K shares, representing an increase of 2.02%. The firm decreased its portfolio allocation in CVS by 8.12% over the last quarter.
CVS Health Declares $0.60 Dividend
On December 15, 2022 the company declared a regular quarterly dividend of $0.60 per share ($2.42 annualized). Shareholders of record as of January 20, 2023 received the payment on February 1, 2023. Previously, the company paid $0.55 per share.
At the current share price of $80.45 / share, the stock’s dividend yield is 3.01%. Looking back five years and taking a sample every week, the average dividend yield has been 2.80%, the lowest has been 2.01%, and the highest has been 3.82%. The standard deviation of yields is 0.48 (n=236).
The current dividend yield is 0.43 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.75. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.21%, demonstrating that it has increased its dividend over time.
CVS Health Background Information
(This description is provided by the company.)
CVS Health is a different kind of health care company. It is a diversified health services company with nearly 300,000 employees united around a common purpose of helping people on their path to better health. In an increasingly connected and digital world, it is meeting people wherever they are and changing health care to meet their needs. Built on a foundation of unmatched community presence, its diversified model engages one in three Americans each year. From its innovative new services at HealthHUB locations, to transformative programs that help manage chronic conditions, it is making health care more accessible, more affordable and simply better.
This article originally appeared on Fintel
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