Wall Street Zen Downgrades Cardinal Health (NYSE:CAH) to Buy

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 a $266.56 average price target.
• 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 fell short of expectations.
• The stock opened at $224.95, down 0.6%, while insiders sold approximately $49.6 million worth of shares over the past 90 days.

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

CAH has been the topic of a number of other reports. Citigroup increased their price objective on Cardinal Health from $265.00 to $280.00 and gave the company a "buy" rating in a report on Wednesday, August 12th. Leerink Partners set a $292.00 target price on Cardinal Health in a research report on Tuesday, August 11th. UBS Group increased their price target on shares of Cardinal Health from $274.00 to $280.00 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Wells Fargo & Company raised their price target on shares of Cardinal Health from $245.00 to $277.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Cardinal Health from $215.00 to $260.00 and gave the company a "neutral" rating in a research note on Thursday, August 13th. Sixteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $266.56.

Cardinal Health Trading Down 0.6%

NYSE CAH opened at $224.95 on Friday. The company has a fifty day simple moving average of $233.74 and a two-hundred day simple moving average of $219.86. The stock has a market cap of $52.32 billion, a P/E ratio of 31.11, a P/E/G ratio of 1.36 and a beta of 0.51. Cardinal Health has a 12-month low of $145.87 and a 12-month high of $258.30.

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

Insider Activity

In related news, 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 transaction of $6,952,488.84. Following the completion of 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Deborah Weitzman sold 7,354 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $235.45, for a total value of $1,731,499.30. Following the completion of the transaction, the chief executive officer directly owned 77,901 shares of the company's stock, valued at $18,341,790.45. The trade was a 8.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 210,271 shares of company stock valued at $49,626,657 over the last 90 days. Company insiders own 0.12% of the company's stock.

Institutional Trading of Cardinal Health

A number of hedge funds have recently added to or reduced their stakes in the company. LWM Advisors Inc. grew its position in shares of Cardinal Health by 4.4% during the 2nd quarter. LWM Advisors Inc. now owns 1,028 shares of the company's stock valued at $244,000 after acquiring an additional 43 shares during the period. Parkside Financial Bank & Trust raised its holdings in Cardinal Health by 2.5% in the 2nd quarter. Parkside Financial Bank & Trust now owns 1,793 shares of the company's stock worth $426,000 after purchasing an additional 43 shares during the period. Kathmere Capital Management LLC boosted its position in Cardinal Health by 1.2% during the first quarter. Kathmere Capital Management LLC now owns 4,242 shares of the company's stock worth $896,000 after purchasing an additional 49 shares in the last quarter. Hillsdale Investment Management Inc. grew its holdings in Cardinal Health by 0.9% in the fourth quarter. Hillsdale Investment Management Inc. now owns 5,760 shares of the company's stock valued at $1,184,000 after purchasing an additional 50 shares during the period. Finally, V Square Quantitative Management LLC grew its holdings in Cardinal Health by 2.6% in the first quarter. V Square Quantitative Management LLC now owns 2,002 shares of the company's stock valued at $423,000 after purchasing an additional 50 shares during the period. 87.17% of the stock is owned by hedge funds and other institutional investors.

Cardinal Health Company Profile

Cardinal Health, Inc is a healthcare services and products company that supports the pharmaceutical and medical industries. Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, over-the-counter products and consumer health items to pharmacies, hospitals, health systems and other healthcare providers. The segment also provides specialty pharmaceutical services, nuclear and radiopharmaceutical products, and related support for manufacturers and providers.

Through its Global Medical Products and Distribution segment, Cardinal Health manufactures, sources and distributes medical and surgical products, including gloves, gowns, syringes, exam-room supplies and other essential equipment.

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