Mizuho Forecasts Strong Price Appreciation for Cardinal Health (NYSE:CAH) Stock

Key Points

• Mizuho raised Cardinal Health’s price target from $250 to $280 and maintained an “outperform” rating, implying 10.6% potential upside. Other analysts also lifted targets, with the stock carrying a consensus “Moderate Buy” rating and average target of $269.38.
• Cardinal Health exceeded quarterly earnings expectations, reporting $2.91 EPS versus the $2.42 consensus, while revenue rose 5.8% year over year to $63.67 billion. Management set fiscal 2027 EPS guidance at $12.40–$12.60.
• Insiders sold approximately 210,271 shares worth $49.6 million over the past quarter, while institutional investors own 87.17% of the company’s stock.

Cardinal Health (NYSE:CAH - Get Free Report) had its price objective boosted by equities researchers at Mizuho from $250.00 to $280.00 in a report issued on Tuesday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Mizuho's target price suggests a potential upside of 10.60% from the company's previous close.

A number of other research analysts also recently commented on the company. TD Cowen increased their price objective on Cardinal Health from $275.00 to $280.00 and gave the company a "buy" rating in a report on Thursday, August 13th. Barclays boosted their target price on Cardinal Health from $258.00 to $275.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. UBS Group upped their price target on Cardinal Health from $280.00 to $295.00 and gave the company a "buy" rating in a report on Friday. Citigroup increased their price target on shares of Cardinal Health from $265.00 to $280.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th. Finally, Wells Fargo & Company raised their price objective on shares of Cardinal Health from $245.00 to $277.00 and gave the stock an "overweight" rating in a report on Wednesday, August 12th. Sixteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Cardinal Health currently has a consensus rating of "Moderate Buy" and an average target price of $269.38.

Cardinal Health Trading Down 0.4%

Shares of NYSE:CAH opened at $253.16 on Tuesday. Cardinal Health has a 52 week low of $155.84 and a 52 week high of $258.30. The company's 50 day moving average is $234.87 and its two-hundred day moving average is $222.63. The company has a market cap of $58.62 billion, a PE ratio of 35.02, a P/E/G ratio of 1.53 and a beta of 0.50.

Cardinal Health (NYSE:CAH - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $2.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.42 by $0.49. The business had revenue of $63.67 billion during the quarter, compared to analysts' expectations of $65.15 billion. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The company's revenue for the quarter was up 5.8% on a year-over-year basis. During the same period in the previous year, the company earned $2.08 EPS. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. As a group, equities research analysts expect that Cardinal Health will post 12.55 EPS for the current year.

Insider Transactions at Cardinal Health

In related news, CEO Jason Hollar sold 44,529 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $236.18, for a total transaction of $10,516,859.22. Following the transaction, the chief executive officer owned 190,603 shares in the company, valued at $45,016,616.54. This trade represents a 18.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Jessica Mayer sold 29,436 shares of Cardinal Health stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $236.19, for a total value of $6,952,488.84. Following the transaction, the insider directly owned 33,076 shares in the company, valued at approximately $7,812,220.44. This trade represents a 47.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 210,271 shares of company stock worth $49,626,657. Insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On Cardinal Health

A number of hedge funds have recently modified their holdings of CAH. Bank of New York Mellon Corp acquired a new stake in shares of Cardinal Health during the 2nd quarter worth approximately $308,640,000. First Nebraska Trust Co acquired a new position in Cardinal Health during the 2nd quarter valued at approximately $20,050,000. Castlekeep Investment Advisors LLC acquired a new position in Cardinal Health during the 2nd quarter valued at approximately $1,177,000. Stack Financial Management Inc acquired a new position in Cardinal Health during the 2nd quarter valued at approximately $24,681,000. Finally, NewEdge Advisors LLC grew its stake in Cardinal Health by 52.9% during the 1st quarter. NewEdge Advisors LLC now owns 33,939 shares of the company's stock worth $7,172,000 after buying an additional 11,740 shares during the last quarter. 87.17% of the stock is currently owned by hedge funds and other institutional investors.

About Cardinal Health

Cardinal Health, Inc is a healthcare services and products company that supports the distribution and delivery of pharmaceuticals, medical products and related services. The company serves hospitals, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and other healthcare providers.

Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, as well as consumer health products, to pharmacies and healthcare institutions.

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