Cardinal Health (NYSE:CAH) CEO Sells 44,529 Shares

Key Points

• Cardinal Health CEO Jason Hollar sold 44,529 shares at an average price of $236.18, generating approximately $10.52 million. His remaining stake fell 18.94% to 190,603 shares.
• Cardinal Health reported quarterly EPS of $2.91, surpassing the $2.42 consensus estimate, while revenue rose 5.8% year over year to $63.67 billion but came in below expectations.
• The company declared a quarterly dividend of $0.5158 per share, equivalent to a $2.06 annualized payout and a 0.9% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $266.56.

Cardinal Health, Inc. (NYSE:CAH - Get Free Report) CEO Jason Hollar sold 44,529 shares of the stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $236.18, for a total value of $10,516,859.22. Following the transaction, the chief executive officer owned 190,603 shares of the company's stock, valued at approximately $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 at this hyperlink.

Cardinal Health Stock Performance

NYSE:CAH opened at $234.73 on Thursday. The company has a market cap of $54.59 billion, a PE ratio of 32.47, a PEG ratio of 1.26 and a beta of 0.49. The stock has a 50-day simple moving average of $231.76 and a 200 day simple moving average of $217.68. Cardinal Health, Inc. has a 52-week low of $145.87 and a 52-week 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $63.67 billion for the quarter, compared to the consensus estimate of $65.15 billion. During the same period last year, the company earned $2.08 earnings per share. The firm's revenue 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. On average, research analysts predict that Cardinal Health, Inc. will post 12.54 earnings per share for the current fiscal year.

Cardinal Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid a $0.5158 dividend. This represents a $2.06 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, October 1st. Cardinal Health's dividend payout ratio (DPR) is 28.49%.

Institutional Investors Weigh In On Cardinal Health

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sigma Planning Corp boosted its holdings in shares of Cardinal Health by 31.4% in the 2nd quarter. Sigma Planning Corp now owns 14,126 shares of the company's stock valued at $3,356,000 after purchasing an additional 3,379 shares in the last quarter. Two Sigma Securities LLC bought a new stake in shares of Cardinal Health during the 2nd quarter worth $4,919,000. Benjamin Edwards Inc. boosted its stake in Cardinal Health by 18.6% in the second quarter. Benjamin Edwards Inc. now owns 9,136 shares of the company's stock valued at $2,170,000 after buying an additional 1,435 shares in the last quarter. Flputnam Investment Management Co. grew its position in Cardinal Health by 0.8% in the second quarter. Flputnam Investment Management Co. now owns 70,728 shares of the company's stock valued at $16,802,000 after acquiring an additional 535 shares during the last quarter. Finally, Cookson Peirce & Co. Inc. raised its stake in Cardinal Health by 0.4% during the second quarter. Cookson Peirce & Co. Inc. now owns 227,784 shares of the company's stock worth $54,112,000 after acquiring an additional 963 shares in the last quarter. 87.17% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CAH has been the topic of several research reports. Morgan Stanley upped their price objective on shares of Cardinal Health from $255.00 to $265.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Bank of America upped their price target on shares of Cardinal Health from $240.00 to $260.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. 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 report on Thursday, August 13th. William Blair initiated coverage on Cardinal Health in a report on Tuesday, April 28th. They set an "outperform" rating for the company. Finally, Weiss Ratings upgraded Cardinal Health from a "buy (b)" rating to a "buy (b+)" rating in a research report on Wednesday, August 5th. Sixteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $266.56.

About Cardinal Health

Cardinal Health is a multinational healthcare services and products company headquartered in Dublin, Ohio. Tracing its roots to the early 1970s, the company has grown into a major provider of supply chain and distribution services for the healthcare sector. Cardinal Health operates across a range of service lines that support hospitals, health systems, pharmacies, physician offices and clinical laboratories.

The company's core activities include the wholesale distribution of branded and generic pharmaceuticals, the supply and distribution of medical-surgical products, and the provision of logistics and inventory management solutions.

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