Cardinal Health (NYSE:CAH) Shares Gap Down - Here's What Happened

Key Points

• Cardinal Health's stock price gapped down significantly from $157.66 to $140.99 before opening, leading to a last traded price of $143.11 with a volume of over 1.7 million shares.
• Several analysts have issued mixed ratings for Cardinal Health, with ratings ranging from "neutral" and "buy" to "strong-buy," with a consensus rating of "Moderate Buy" and an average target price of $158.07.
• The company recently reported quarterly earnings of $2.08 per share, surpassing expectations but falling short on revenue, which was $60.16 billion compared to the anticipated $60.91 billion.

Cardinal Health, Inc. (NYSE:CAH - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $157.66, but opened at $140.99. Cardinal Health shares last traded at $143.11, with a volume of 1,757,420 shares changing hands.

Analyst Ratings Changes

CAH has been the topic of several recent analyst reports. Citigroup reaffirmed a "neutral" rating and issued a $170.00 price target (up from $157.00) on shares of Cardinal Health in a research report on Friday, June 13th. Wall Street Zen cut shares of Cardinal Health from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 2nd. Jefferies Financial Group set a $150.00 price target on shares of Cardinal Health in a research report on Tuesday. Wells Fargo & Company upgraded shares of Cardinal Health from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $136.00 to $179.00 in a report on Tuesday, June 3rd. Finally, Evercore ISI reaffirmed an "outperform" rating and set a $180.00 price objective (up previously from $175.00) on shares of Cardinal Health in a research report on Thursday, June 12th. Three analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $158.07.

Cardinal Health Stock Performance

The firm has a 50 day moving average price of $160.10 and a two-hundred day moving average price of $144.16. The company has a market capitalization of $34.88 billion, a P/E ratio of 22.82, a price-to-earnings-growth ratio of 1.56 and a beta of 0.67.

Cardinal Health (NYSE:CAH - Get Free Report) last issued its quarterly earnings data on Tuesday, August 12th. The company reported $2.08 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.05. The firm had revenue of $60.16 billion for the quarter, compared to analysts' expectations of $60.91 billion. Cardinal Health had a net margin of 0.70% and a negative return on equity of 68.84%. The company's quarterly revenue was up .5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.84 earnings per share. On average, equities analysts expect that Cardinal Health, Inc. will post 7.95 earnings per share for the current year.

Institutional Trading of Cardinal Health

Hedge funds and other institutional investors have recently modified their holdings of the stock. CenterBook Partners LP acquired a new position in Cardinal Health during the 2nd quarter valued at about $3,705,000. AlphaCore Capital LLC bought a new stake in shares of Cardinal Health during the second quarter worth approximately $41,000. Mufg Securities Americas Inc. lifted its holdings in Cardinal Health by 23.7% in the second quarter. Mufg Securities Americas Inc. now owns 5,290 shares of the company's stock valued at $889,000 after buying an additional 1,014 shares during the period. AXQ Capital LP lifted its holdings in Cardinal Health by 87.0% in the second quarter. AXQ Capital LP now owns 7,048 shares of the company's stock valued at $1,184,000 after buying an additional 3,279 shares during the period. Finally, Journey Strategic Wealth LLC bought a new position in Cardinal Health in the second quarter valued at approximately $223,000. Institutional investors and hedge funds own 87.17% of the company's stock.

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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