Cardinal Health (NYSE:CAH) Stock Price Expected to Rise, Argus Analyst Says

Key Points

• Argus raised its price target on Cardinal Health from $264 to $309 and maintained a Buy rating, implying 11.3% upside from the prior close.
• Analysts’ consensus is Moderate Buy, with an average price target of $279.44.
• Cardinal Health reported quarterly EPS of $3.26, above estimates of $2.94, while revenue of $67.51 billion topped forecasts and rose 5.5% year over year.

Cardinal Health (NYSE:CAH - Get Free Report) had its price objective lifted by equities research analysts at Argus from $264.00 to $309.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Argus's price objective points to a potential upside of 11.30% from the stock's previous close.

CAH has been the topic of several other research reports. Citigroup lifted their target price on shares of Cardinal Health from $265.00 to $280.00 and gave the company a "buy" rating in a report on Wednesday, August 12th. Mizuho set a $290.00 price target on shares of Cardinal Health in a research report on Thursday, November 5th. Weiss Ratings upgraded Cardinal Health from a "buy (b+)" rating to a "buy (a-)" rating in a report on Monday. Royal Bank Of Canada raised their price objective on Cardinal Health from $276.00 to $295.00 and gave the company an "outperform" rating in a research report on Friday, November 6th. Finally, Wall Street Zen upgraded Cardinal Health from a "buy" rating to a "strong-buy" rating in a research note on Sunday, October 25th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Cardinal Health currently has a consensus rating of "Moderate Buy" and an average target price of $279.44.

Cardinal Health Stock Performance

CAH opened at $277.63 on Thursday. Cardinal Health has a 1 year low of $180.45 and a 1 year high of $286.29. The firm has a 50 day moving average price of $242.85 and a 200 day moving average price of $224.57. The company has a market cap of $64.17 billion, a PE ratio of 35.92, a price-to-earnings-growth ratio of 2.12 and a beta of 0.53.

Cardinal Health (NYSE:CAH - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported $3.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.94 by $0.32. Cardinal Health had a net margin of 0.71% and a negative return on equity of 102.72%. The firm had revenue of $67.51 billion for the quarter, compared to analysts' expectations of $66.67 billion. During the same period in the previous year, the company posted $2.55 earnings per share. Cardinal Health's revenue was up 5.5% compared to the same quarter last year. On average, sell-side analysts predict that Cardinal Health will post 12.96 earnings per share for the current year.

Insider Buying and Selling

In other news, CAO Mary C. Scherer sold 2,302 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $237.39, for a total value of $546,471.78. Following the completion of the transaction, the chief accounting officer directly owned 2,811 shares in the company, valued at approximately $667,303.29. This represents a 45.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Jason M. Hollar sold 44,529 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $236.18, for a total transaction of $10,516,859.22. Following the completion of the transaction, the chief executive officer owned 190,603 shares of the company's stock, valued at $45,016,616.54. This trade represents a 18.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 210,271 shares of company stock valued at $49,626,657 over the last three months. Company insiders own 0.12% of the company's stock.

Institutional Investors Weigh In On Cardinal Health

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CAH. Downshift Financial LLC grew its stake in shares of Cardinal Health by 3,666.7% during the third quarter. Downshift Financial LLC now owns 113 shares of the company's stock valued at $25,000 after acquiring an additional 110 shares in the last quarter. Investors Research Corp acquired a new position in shares of Cardinal Health in the second quarter worth about $29,000. Maryland Capital Advisors Inc. lifted its stake in shares of Cardinal Health by 12,600.0% in the third quarter. Maryland Capital Advisors Inc. now owns 127 shares of the company's stock worth $28,000 after acquiring an additional 126 shares in the last quarter. Allied Private Wealth LLC acquired a new position in shares of Cardinal Health in the second quarter worth about $30,000. Finally, NBH Bank purchased a new position in Cardinal Health in the second quarter valued at about $31,000. Hedge funds and other institutional investors own 87.17% of the company's stock.

Cardinal Health Company Profile

Cardinal Health is a healthcare services and products company that distributes pharmaceuticals and medical supplies. Its customers include pharmacies, hospitals, surgery centers, physician offices and other healthcare providers. The company's businesses include pharmaceutical distribution and specialty services, as well as the sourcing and distribution of medical and surgical products. Its offerings support areas such as specialty medications, medication management and supply-chain operations. Cardinal Health traces its roots to a wholesale business founded in Ohio in 1971 and later expanded into pharmaceutical distribution.

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