CVS Health (NYSE:CVS) Shares Gap Down - Here's Why

Shares of CVS Health Co. (NYSE:CVS - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $65.09, but opened at $62.88. CVS Health shares last traded at $63.96, with a volume of 2,799,405 shares changing hands.

Wall Street Analysts Forecast Growth

CVS has been the subject of several research reports. StockNews.com upgraded shares of CVS Health from a "sell" rating to a "hold" rating in a research report on Thursday, February 13th. Leerink Partnrs raised shares of CVS Health from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, February 12th. Royal Bank of Canada dropped their price objective on shares of CVS Health from $68.00 to $58.00 and set an "outperform" rating on the stock in a research note on Friday, November 15th. Wolfe Research boosted their price objective on shares of CVS Health from 67.00 to 70.00 and gave the company an "overweight" rating in a research note on Tuesday, February 11th. Finally, Barclays boosted their price objective on shares of CVS Health from $71.00 to $73.00 and gave the company an "overweight" rating in a research note on Thursday, February 13th. Four investment analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $70.00.

CVS Health Stock Performance

The company has a market capitalization of $79.95 billion, a PE ratio of 17.33, a price-to-earnings-growth ratio of 0.98 and a beta of 0.61. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.60 and a current ratio of 0.81. The stock's fifty day simple moving average is $52.39 and its 200-day simple moving average is $56.23.

CVS Health (NYSE:CVS - Get Free Report) last announced its quarterly earnings data on Wednesday, February 12th. The pharmacy operator reported $1.19 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.30. CVS Health had a net margin of 1.24% and a return on equity of 9.11%. As a group, equities analysts predict that CVS Health Co. will post 5.89 earnings per share for the current year.

CVS Health Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, February 3rd. Investors of record on Thursday, January 23rd were given a dividend of $0.665 per share. This represents a $2.66 dividend on an annualized basis and a yield of 4.19%. The ex-dividend date of this dividend was Thursday, January 23rd. CVS Health's dividend payout ratio (DPR) is presently 72.68%.

Insider Buying and Selling

In other news, Director Michael F. Mahoney acquired 30,000 shares of the stock in a transaction on Tuesday, February 18th. The stock was bought at an average price of $66.70 per share, with a total value of $2,001,000.00. Following the completion of the transaction, the director now directly owns 39,356 shares of the company's stock, valued at $2,625,045.20. The trade was a 320.65 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.24% of the company's stock.

Institutional Trading of CVS Health

Several large investors have recently bought and sold shares of the company. Dodge & Cox grew its position in CVS Health by 11.2% in the fourth quarter. Dodge & Cox now owns 70,105,899 shares of the pharmacy operator's stock valued at $3,147,054,000 after acquiring an additional 7,075,209 shares in the last quarter. Capital World Investors boosted its stake in shares of CVS Health by 26.6% during the 4th quarter. Capital World Investors now owns 61,039,777 shares of the pharmacy operator's stock valued at $2,739,927,000 after buying an additional 12,819,148 shares during the last quarter. State Street Corp boosted its stake in shares of CVS Health by 3.6% during the 3rd quarter. State Street Corp now owns 56,527,909 shares of the pharmacy operator's stock valued at $3,554,475,000 after buying an additional 1,989,066 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of CVS Health by 2.6% during the 4th quarter. Geode Capital Management LLC now owns 27,051,540 shares of the pharmacy operator's stock valued at $1,211,582,000 after buying an additional 689,867 shares during the last quarter. Finally, Capital International Investors boosted its stake in shares of CVS Health by 4.8% during the 4th quarter. Capital International Investors now owns 26,666,401 shares of the pharmacy operator's stock valued at $1,196,989,000 after buying an additional 1,212,126 shares during the last quarter. Institutional investors and hedge funds own 80.66% of the company's stock.

CVS Health Company Profile

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.