Cardinal Health, Inc. (NYSE:CAH) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Cardinal Health, Inc. has received an average recommendation of "Moderate Buy" from 14 research firms, with 11 analysts issuing a buy rating and an average 1-year price target of approximately $165.93.
• The recent earnings report indicated a quarterly earnings per share (EPS) of $2.08, surpassing consensus estimates, while revenue saw a slight increase of 0.5% year-over-year.
• Insider trading activity has increased, with CEO Stephen M. Mason selling over 41,000 shares, reflecting a significant reduction in ownership, alongside other insiders selling various amounts of shares.

Shares of Cardinal Health, Inc. (NYSE:CAH - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the fourteen research firms that are covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $165.9333.

Several analysts recently issued reports on CAH shares. Argus set a $189.00 price target on Cardinal Health in a research note on Friday, August 22nd. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $185.00 price objective (up from $183.00) on shares of Cardinal Health in a report on Wednesday, August 13th. Bank of America lifted their price objective on Cardinal Health from $165.00 to $170.00 and gave the company a "buy" rating in a report on Tuesday, June 10th. UBS Group reaffirmed a "buy" rating on shares of Cardinal Health in a report on Tuesday, August 12th. Finally, Morgan Stanley reaffirmed an "overweight" rating on shares of Cardinal Health in a report on Tuesday, August 12th.

Insider Transactions at Cardinal Health

In other news, CEO Stephen M. Mason sold 41,575 shares of the business's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $148.82, for a total transaction of $6,187,191.50. Following the completion of the transaction, the chief executive officer owned 26,085 shares of the company's stock, valued at approximately $3,881,969.70. The trade was a 61.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jessica L. Mayer sold 38,078 shares of the business's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $148.82, for a total value of $5,666,767.96. Following the transaction, the insider directly owned 48,457 shares of the company's stock, valued at $7,211,370.74. This trade represents a 44.00% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 271,676 shares of company stock worth $40,489,525. Corporate insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On Cardinal Health

A number of institutional investors have recently modified their holdings of the business. Texas Permanent School Fund Corp raised its holdings in shares of Cardinal Health by 16.8% during the 2nd quarter. Texas Permanent School Fund Corp now owns 30,508 shares of the company's stock worth $5,125,000 after buying an additional 4,384 shares in the last quarter. Valeo Financial Advisors LLC acquired a new position in shares of Cardinal Health during the 2nd quarter worth $425,000. Osaic Holdings Inc. raised its holdings in shares of Cardinal Health by 25.6% during the 2nd quarter. Osaic Holdings Inc. now owns 86,010 shares of the company's stock worth $14,330,000 after buying an additional 17,556 shares in the last quarter. American Trust acquired a new position in Cardinal Health in the 2nd quarter worth about $256,000. Finally, Total Investment Management Inc. acquired a new position in Cardinal Health in the 2nd quarter worth about $176,000. Institutional investors and hedge funds own 87.17% of the company's stock.

Cardinal Health Price Performance

CAH opened at $153.84 on Monday. The business has a fifty day simple moving average of $152.20 and a 200 day simple moving average of $149.61. The company has a market capitalization of $36.55 billion, a PE ratio of 23.85, a price-to-earnings-growth ratio of 1.30 and a beta of 0.73. Cardinal Health has a 1 year low of $106.98 and a 1 year high of $168.44.

Cardinal Health (NYSE:CAH - Get Free Report) last released its quarterly earnings results on Tuesday, August 12th. The company reported $2.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.05. The business had revenue of $60.16 billion during the quarter, compared to the consensus estimate of $60.91 billion. Cardinal Health had a negative return on equity of 74.45% and a net margin of 0.70%.The firm's quarterly revenue was up .5% on a year-over-year basis. During the same period in the previous year, the company posted $1.84 EPS. Cardinal Health has set its FY 2026 guidance at 9.300-9.500 EPS. Equities analysts anticipate that Cardinal Health will post 7.95 earnings per share for the current fiscal year.

Cardinal Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be issued a $0.5107 dividend. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $2.04 annualized dividend and a yield of 1.3%. Cardinal Health's payout ratio is currently 31.63%.

About Cardinal Health

Cardinal Health, Inc operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home.

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