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Michael F. Mahoney, a director at CVS Health Corp (NYSE:CVS), has acquired 30,000 shares of the company’s common stock, according to a recent SEC filing. The shares were purchased at a price of $66.70 each, totaling approximately $2,001,000. This insider purchase comes as InvestingPro analysis suggests the stock is trading below its Fair Value, with 12 analysts recently revising earnings estimates upward. Following this transaction, Mahoney holds a total of 39,356 shares directly. Additionally, he holds 210 shares indirectly through trusts for the benefit of his children, though he disclaims beneficial ownership of these shares. The company maintains a solid 4.06% dividend yield and has maintained dividend payments for 55 consecutive years. InvestingPro subscribers can access detailed insider trading patterns and 12 more exclusive ProTips for CVS Health.
In other recent news, CVS Health has reported notable developments across its financial and strategic outlook. CVS Health’s fourth-quarter results for 2024 exceeded expectations, with an adjusted EBIT of $2.73 billion, surpassing both the Street’s estimate of $2.30 billion and Raymond (NSE:RYMD) James’s forecast of $2.10 billion. Additionally, CVS Health’s adjusted earnings per share came in at $1.19, higher than the Street’s $0.91 and Raymond James’s $0.77 estimates. As a result, Raymond James raised its price target for CVS Health from $65 to $75, maintaining an Outperform rating.
Truist Securities also increased its price target for CVS Health to $76, citing the company’s impressive fourth-quarter performance and strategic measures aimed at enhancing Health Benefit margins. BofA Securities followed suit, raising the price target to $75 and highlighting the strong potential for earnings growth driven by CVS’s Aetna business unit. Meanwhile, Leerink Partners upgraded CVS Health’s stock rating from Market Perform to Outperform, raising the price target to $75, emphasizing the stabilization of CVS’s Aetna and Healthcare Benefits segments.
Cantor Fitzgerald maintained an Overweight rating on CVS Health, with a $71 price target, noting the company’s exposure to Medicaid-related revenues in states with expanded Medicaid programs. These recent developments reflect analysts’ confidence in CVS Health’s market position and strategic initiatives, with various firms adjusting their price targets and ratings based on the company’s financial performance and future prospects.
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