Cantor Fitzgerald Initiates Coverage of CVS Health (CVS) with Overweight Recommendation

Fintel reports that on April 21, 2023, Cantor Fitzgerald initiated coverage of CVS Health (NYSE:CVS) with a Overweight recommendation.

Analyst Price Forecast Suggests 56.10% Upside

As of April 6, 2023, the average one-year price target for CVS Health is $114.34. The forecasts range from a low of $95.95 to a high of $150.15. The average price target represents an increase of 56.10% from its latest reported closing price of $73.25.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for CVS Health is $328,800MM, an increase of 2.23%. The projected annual non-GAAP EPS is $8.94.

CVS Health Declares $0.60 Dividend

On March 16, 2023 the company declared a regular quarterly dividend of $0.60 per share ($2.42 annualized). Shareholders of record as of April 21, 2023 will receive the payment on May 1, 2023. Previously, the company paid $0.60 per share.

At the current share price of $73.25 / share, the stock’s dividend yield is 3.30%. 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 1.04 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.

What are Other Shareholders Doing?

Accurate Wealth Management holds 6K shares representing 0.00% ownership of the company. In it’s prior filing, the firm reported owning 5K shares, representing an increase of 19.53%. The firm decreased its portfolio allocation in CVS by 2.34% over the last quarter.

Allspring Global Investments Holdings holds 1,201K shares representing 0.09% ownership of the company. In it’s prior filing, the firm reported owning 1,050K shares, representing an increase of 12.59%. The firm decreased its portfolio allocation in CVS by 14.73% over the last quarter.

Robeco Institutional Asset Management B.V. holds 1,705K shares representing 0.13% ownership of the company. In it’s prior filing, the firm reported owning 1,798K shares, representing a decrease of 5.45%. The firm decreased its portfolio allocation in CVS by 17.37% over the last quarter.

WCG Wealth Advisors holds 18K shares representing 0.00% ownership of the company. In it’s prior filing, the firm reported owning 22K shares, representing a decrease of 19.61%. The firm increased its portfolio allocation in CVS by 4.24% over the last quarter.

Financial Partners Group holds 50K shares representing 0.00% ownership of the company.

What is the Fund Sentiment?

There are 3855 funds or institutions reporting positions in CVS Health. This is an increase of 64 owner(s) or 1.69% in the last quarter. Average portfolio weight of all funds dedicated to CVS is 0.47%, a decrease of 29.95%. Total shares owned by institutions decreased in the last three months by 1.91% to 1,243,109K shares. The put/call ratio of CVS is 0.59, indicating a bullish outlook.

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.

See all CVS Health regulatory filings.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.