Cardinal Health (NYSE:CAH) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Cardinal Health from “strong-buy” to “buy,” although broader analyst sentiment remains positive with a “Moderate Buy” consensus and an average price target of $267.50.
• Cardinal Health reported quarterly EPS of $2.91, beating estimates of $2.42, while revenue rose 5.8% year over year to $63.67 billion but came in below expectations.
• Insiders sold 210,271 shares worth approximately $49.6 million during the last quarter, including significant share sales by CEOs Jason M. Hollar and Stephen M. Mason.

Cardinal Health (NYSE:CAH - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Saturday, Wall Street Zen reports.

CAH has been the topic of several other reports. Morgan Stanley boosted their target price on Cardinal Health from $255.00 to $265.00 and gave the stock an "overweight" rating in a report on Wednesday, August 12th. Bank of America raised their price target on Cardinal Health from $240.00 to $260.00 and gave the company a "buy" rating in a report on Thursday, July 2nd. Leerink Partners set a $292.00 price objective on Cardinal Health in a research report on Tuesday, August 11th. JPMorgan Chase & Co. boosted their price objective on Cardinal Health from $215.00 to $260.00 and gave the stock a "neutral" rating in a research note on Thursday, August 13th. Finally, Weiss Ratings upgraded Cardinal Health from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. Sixteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Cardinal Health has an average rating of "Moderate Buy" and an average target price of $267.50.

Cardinal Health Trading Up 0.1%

Shares of CAH opened at $253.86 on Friday. The stock has a market cap of $58.78 billion, a PE ratio of 35.11, a PEG ratio of 1.53 and a beta of 0.50. Cardinal Health has a 1 year low of $152.46 and a 1 year high of $258.30. The stock has a 50 day simple moving average of $234.54 and a 200-day simple moving average of $222.22.

Cardinal Health (NYSE:CAH - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $2.91 EPS for the quarter, beating the consensus estimate of $2.42 by $0.49. Cardinal Health had a negative return on equity of 98.53% and a net margin of 0.67%. The business had revenue of $63.67 billion for the quarter, compared to analyst estimates of $65.15 billion. During the same quarter in the previous year, the firm earned $2.08 EPS. Cardinal Health's quarterly revenue was up 5.8% on a year-over-year basis. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. On average, sell-side analysts forecast that Cardinal Health will post 12.55 EPS for the current fiscal year.

Insider Activity at Cardinal Health

In related news, CEO Jason M. Hollar sold 80,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $235.74, for a total value of $18,859,200.00. Following the transaction, the chief executive officer directly owned 235,132 shares in the company, valued at $55,430,017.68. This represents a 25.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Stephen M. Mason sold 35,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $236.40, for a total transaction of $8,274,000.00. Following the completion of the transaction, the chief executive officer directly owned 18,061 shares in the company, valued at approximately $4,269,620.40. The trade was a 65.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 210,271 shares of company stock worth $49,626,657. Insiders own 0.12% of the company's stock.

Institutional Trading of Cardinal Health

Institutional investors and hedge funds have recently made changes to their positions in the business. LWM Advisors Inc. boosted its stake in shares of Cardinal Health by 4.4% during the second quarter. LWM Advisors Inc. now owns 1,028 shares of the company's stock valued at $244,000 after purchasing an additional 43 shares in the last quarter. Parkside Financial Bank & Trust raised its stake in Cardinal Health by 2.5% in the second quarter. Parkside Financial Bank & Trust now owns 1,793 shares of the company's stock valued at $426,000 after buying an additional 43 shares during the last quarter. Annex Advisory Services LLC boosted its stake in Cardinal Health by 1.5% in the 3rd quarter. Annex Advisory Services LLC now owns 2,914 shares of the company's stock worth $648,000 after purchasing an additional 44 shares in the last quarter. Kathmere Capital Management LLC grew its holdings in shares of Cardinal Health by 1.2% during the first quarter. Kathmere Capital Management LLC now owns 4,242 shares of the company's stock valued at $896,000 after buying an additional 49 shares during the last quarter. Finally, V Square Quantitative Management LLC grew its holdings in shares of Cardinal Health by 2.6% during the first quarter. V Square Quantitative Management LLC now owns 2,002 shares of the company's stock valued at $423,000 after buying an additional 50 shares during the last quarter. Institutional investors own 87.17% of the company's stock.

Cardinal Health Company Profile

Cardinal Health, Inc is a healthcare services and products company that supports pharmacies, hospitals, ambulatory surgery centers, physician offices and other healthcare providers. Its operations are primarily organized into Pharmaceutical and Medical segments.

The Pharmaceutical segment distributes branded, generic, specialty and over-the-counter medicines, as well as consumer health products. It also provides services related to specialty pharmaceuticals, pharmaceutical sourcing, nuclear and precision health products, and data and analytics for pharmaceutical manufacturers and healthcare organizations.

The Medical segment distributes medical and surgical products, including gloves, apparel, incontinence supplies, laboratory products and other essential items.

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