Traders Purchase Large Volume of CVS Health Call Options (NYSE:CVS)

CVS Health Corporation (NYSE:CVS) was the target of unusually large options trading on Monday. Stock investors purchased 35,379 call options on the company. This is an increase of 79% compared to the average daily volume of 19,814 call options.

CVS Health Stock Up 3.4%

NYSE:CVS traded up $3.30 during mid-day trading on Monday, hitting $101.62. The company had a trading volume of 9,442,452 shares, compared to its average volume of 8,650,731. The business has a fifty day simple moving average of $89.31 and a 200-day simple moving average of $81.50. The firm has a market capitalization of $129.66 billion, a price-to-earnings ratio of 44.77, a PEG ratio of 0.96 and a beta of 0.62. CVS Health has a 1 year low of $58.50 and a 1 year high of $103.12. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.78.

CVS Health (NYSE:CVS) last issued its earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share for the quarter, topping the consensus estimate of $2.21 by $0.36. The company had revenue of $100.43 billion during the quarter, compared to the consensus estimate of $94.99 billion. CVS Health had a return on equity of 11.88% and a net margin of 0.72%.The company’s revenue was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.25 earnings per share. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. Equities analysts forecast that CVS Health will post 7.44 earnings per share for the current fiscal year.

More CVS Health News

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: CVS announced an expanded GLP-1 support program across its pharmacy and MinuteClinic network, including lower-cost access, pharmacist guidance, over-the-counter side-effect support, and virtual weight-management visits. The move could improve patient retention and drive more traffic through CVS’s retail and care channels. Article: CVS Pharmacy® expands GLP?1 support to lower costs, improve access, and help patients stay on therapy
• Positive Sentiment: MarketWatch and Yahoo Finance highlighted the GLP-1 expansion as a notable business development, reinforcing the view that CVS is positioning itself to benefit from strong demand for weight-loss medications. Article: CVS Health Expands GLP-1 Support for Patients
• Positive Sentiment: Unusual options activity showed investors buying far more call options than usual, suggesting rising bullish speculation on CVS shares.
• Positive Sentiment: Recent coverage from Zacks and MSN describing CVS as a top momentum stock may be adding to the stock’s positive sentiment and attracting additional buyers. Article: Why CVS Health (CVS) is a Top Momentum Stock for the Long-Term
• Neutral Sentiment: CVS also promoted soccer-themed community events and in-store activations, which help brand visibility but are unlikely to be a major stock driver. Article: CVS Continues To Celebrate Soccer With Community Events
• Neutral Sentiment: Wall Street Zen’s upgrade to Buy is supportive, but it appears to be a smaller contributor compared with the GLP-1 announcement. Article: CVS Health (NYSE:CVS) Upgraded to Buy at Wall Street Zen

Wall Street Analysts Forecast Growth

Several research firms recently commented on CVS. Barclays upped their target price on CVS Health from $101.00 to $106.00 and gave the company an “overweight” rating in a research note on Tuesday, May 26th. TD Cowen lifted their price target on CVS Health from $105.00 to $110.00 and gave the company a “buy” rating in a report on Monday, May 11th. UBS Group increased their price objective on shares of CVS Health from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Monday, June 8th. JPMorgan Chase & Co. boosted their target price on shares of CVS Health from $101.00 to $111.00 and gave the company an “overweight” rating in a report on Tuesday, May 12th. Finally, Argus increased their price target on shares of CVS Health from $90.00 to $104.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $100.68.

Insider Buying and Selling

In other CVS Health news, Director Larry Robbins sold 1,983,538 shares of the stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $94.45, for a total value of $187,345,164.10. Following the completion of the transaction, the director owned 6,213,261 shares in the company, valued at approximately $586,842,501.45. This represents a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Tilak Mandadi sold 69,551 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the completion of the sale, the executive vice president owned 10,133 shares of the company’s stock, valued at $907,714.14. This trade represents a 87.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 3,441,551 shares of company stock valued at $323,703,977. Company insiders own 0.85% of the company’s stock.

Institutional Trading of CVS Health

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in CVS Health by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 120,709,530 shares of the pharmacy operator’s stock worth $9,579,508,000 after purchasing an additional 1,824,424 shares during the last quarter. Capital World Investors lifted its position in shares of CVS Health by 2.1% in the 3rd quarter. Capital World Investors now owns 68,382,158 shares of the pharmacy operator’s stock worth $5,155,380,000 after buying an additional 1,419,575 shares during the last quarter. State Street Corp grew its position in shares of CVS Health by 2.1% during the 4th quarter. State Street Corp now owns 60,183,743 shares of the pharmacy operator’s stock valued at $4,776,182,000 after buying an additional 1,245,457 shares during the last quarter. Capital International Investors grew its position in shares of CVS Health by 3.4% during the 4th quarter. Capital International Investors now owns 27,592,356 shares of the pharmacy operator’s stock valued at $2,189,793,000 after buying an additional 900,153 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in CVS Health by 3.2% in the third quarter. Invesco Ltd. now owns 24,293,058 shares of the pharmacy operator’s stock worth $1,831,454,000 after acquiring an additional 760,579 shares during the last quarter. 80.66% of the stock is owned by hedge funds and other institutional investors.

CVS Health Company Profile

CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over?the?counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in?store clinics with broader pharmacy and health plan capabilities.

Key business activities include CVS Pharmacy retail operations, MinuteClinic walk?in medical clinics and HealthHUB locations that offer expanded clinical services.