Castlekeep Investment Advisors LLC Buys New Stake in Cardinal Health, Inc. $CAH

Key Points

• Castlekeep Investment Advisors initiated a Cardinal Health position by purchasing 4,954 shares worth approximately $1.18 million. Institutional investors and hedge funds collectively own 87.17% of the company.
• Analysts remain broadly positive, with 16 Buy ratings and three Holds; Cardinal Health has a “Moderate Buy” consensus rating and an average price target of $266.56.
• Cardinal Health exceeded quarterly earnings expectations, reporting $2.91 in EPS versus the $2.42 consensus estimate, while revenue rose 5.8% year over year. The company also declared a quarterly dividend of $0.5158 per share, representing a 0.9% yield.

Castlekeep Investment Advisors LLC bought a new stake in Cardinal Health, Inc. (NYSE:CAH - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 4,954 shares of the company's stock, valued at approximately $1,177,000. Cardinal Health makes up about 0.6% of Castlekeep Investment Advisors LLC's portfolio, making the stock its 27th largest holding.

A number of other large investors have also made changes to their positions in the business. Bank of New York Mellon Corp acquired a new position in Cardinal Health during the 2nd quarter valued at approximately $308,640,000. Kornitzer Capital Management Inc. KS lifted its stake in shares of Cardinal Health by 100.8% during the fourth quarter. Kornitzer Capital Management Inc. KS now owns 18,164 shares of the company's stock worth $3,733,000 after buying an additional 9,120 shares during the period. First Nebraska Trust Co purchased a new stake in shares of Cardinal Health during the second quarter valued at $20,050,000. Byrne Financial Freedom LLC purchased a new stake in shares of Cardinal Health during the fourth quarter valued at $1,574,000. Finally, Belleair Asset Management LLC acquired a new position in shares of Cardinal Health in the 4th quarter valued at $1,100,000. 87.17% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have commented on CAH. Citigroup lifted their price target on Cardinal Health from $265.00 to $280.00 and gave the stock a "buy" rating in a research report on Wednesday, August 12th. 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. Evercore reaffirmed an "outperform" rating and issued a $270.00 price objective on shares of Cardinal Health in a report on Wednesday, August 12th. Bank of America increased their price objective on shares of Cardinal Health from $240.00 to $260.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Finally, Weiss Ratings cut shares of Cardinal Health from a "buy (b+)" rating to a "buy (b)" rating in a report on Wednesday, August 19th. Sixteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Cardinal Health presently has an average rating of "Moderate Buy" and a consensus price target of $266.56.

Cardinal Health Stock Up 2.4%

CAH stock opened at $238.00 on Wednesday. Cardinal Health, Inc. has a 52-week low of $145.87 and a 52-week high of $258.30. The firm has a market cap of $55.35 billion, a P/E ratio of 32.92, a PEG ratio of 1.24 and a beta of 0.49. The company's 50-day simple moving average is $232.34 and its 200-day simple moving average is $218.18.

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

Cardinal Health Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.5158 per share. This represents a $2.06 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, October 1st. Cardinal Health's dividend payout ratio is presently 28.49%.

Insider Buying and Selling at Cardinal Health

In related news, insider Michelle D. Greene sold 11,650 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $235.72, for a total value of $2,746,138.00. Following the completion of the sale, the insider owned 10,330 shares of the company's stock, valued at approximately $2,434,987.60. The trade was a 53.00% decrease in their position. 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 company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $235.45, for a total transaction of $1,731,499.30. Following the transaction, the chief executive officer owned 77,901 shares of the company's stock, valued at $18,341,790.45. This represents a 8.63% decrease in their ownership of the stock. 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. 0.12% of the stock is currently owned by corporate insiders.

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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