Wolfe Research Upgrades CVS Health

Fintel reports that on September 12, 2023, Wolfe Research upgraded their outlook for CVS Health (NYSE:CVS) from Peer Perform to Outperform.

Analyst Price Forecast Suggests 35.84% Upside

As of August 31, 2023, the average one-year price target for CVS Health is 93.39. The forecasts range from a low of 76.76 to a high of $115.50. The average price target represents an increase of 35.84% from its latest reported closing price of 68.75.

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The projected annual revenue for CVS Health is 328,800MM, a decrease of 2.74%. The projected annual non-GAAP EPS is 8.94.

CVS Health Declares $0.60 Dividend

On July 7, 2023 the company declared a regular quarterly dividend of $0.60 per share ($2.42 annualized). Shareholders of record as of July 21, 2023 received the payment on August 1, 2023. Previously, the company paid $0.60 per share.

At the current share price of $68.75 / share, the stock’s dividend yield is 3.52%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.84%, the lowest has been 2.01%, and the highest has been 3.82%. The standard deviation of yields is 0.51 (n=235).

The current dividend yield is 1.34 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 1.11. 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.

What is the Fund Sentiment?

There are 3486 funds or institutions reporting positions in CVS Health. This is a decrease of 214 owner(s) or 5.78% in the last quarter. Average portfolio weight of all funds dedicated to CVS is 0.45%, a decrease of 7.55%. Total shares owned by institutions decreased in the last three months by 2.50% to 1,150,368K shares. The put/call ratio of CVS is 0.68, indicating a bullish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 39,965K shares representing 3.11% ownership of the company. In it’s prior filing, the firm reported owning 39,679K shares, representing an increase of 0.72%. The firm decreased its portfolio allocation in CVS by 13.55% over the last quarter.

BBCPX – Bridge Builder Core Plus Bond Fund holds 30,725K shares representing 2.39% ownership of the company. No change in the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 30,524K shares representing 2.38% ownership of the company. In it’s prior filing, the firm reported owning 29,964K shares, representing an increase of 1.83%. The firm decreased its portfolio allocation in CVS by 14.17% over the last quarter.

Capital World Investors holds 30,491K shares representing 2.37% ownership of the company. In it’s prior filing, the firm reported owning 32,634K shares, representing a decrease of 7.03%. The firm decreased its portfolio allocation in CVS by 19.12% over the last quarter.

Geode Capital Management holds 23,325K shares representing 1.82% ownership of the company. In it’s prior filing, the firm reported owning 22,962K shares, representing an increase of 1.56%. The firm decreased its portfolio allocation in CVS by 14.52% over the last quarter.

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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