Wellington Management Group LLP Acquires 10,584,119 Shares of Cardinal Health, Inc. $CAH

Key Points

• Wellington Management significantly increased its Cardinal Health stake by 10.6 million shares, bringing its holdings to 14.86 million shares valued at approximately $3.53 billion. Institutional investors collectively own 87.17% of CAH.
• Cardinal Health reported quarterly EPS of $2.91, exceeding the $2.42 consensus estimate, while revenue rose 5.8% year over year to $63.67 billion. The company issued fiscal 2027 EPS guidance of $12.40–$12.60.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $266.56 versus a recent share price of $234.72. The company also declared a quarterly dividend of $0.5158 per share, while insiders sold roughly $49.6 million of stock over the past quarter.

Wellington Management Group LLP boosted its holdings in shares of Cardinal Health, Inc. (NYSE:CAH - Free Report) by 247.5% in the second quarter, according to its most recent filing with the SEC. The firm owned 14,860,271 shares of the company's stock after acquiring an additional 10,584,119 shares during the period. Cardinal Health accounts for 0.6% of Wellington Management Group LLP's portfolio, making the stock its 24th largest position. Wellington Management Group LLP owned 6.39% of Cardinal Health worth $3,530,206,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in CAH. Integrated Wealth Concepts LLC increased its holdings in Cardinal Health by 6.9% in the first quarter. Integrated Wealth Concepts LLC now owns 4,363 shares of the company's stock valued at $601,000 after purchasing an additional 280 shares during the last quarter. Jones Financial Companies Lllp boosted its holdings in Cardinal Health by 198.3% during the first quarter. Jones Financial Companies Lllp now owns 21,112 shares of the company's stock worth $27,000 after buying an additional 14,034 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new position in Cardinal Health during the second quarter worth about $1,935,000. Cerity Partners LLC grew its position in shares of Cardinal Health by 17.0% during the 2nd quarter. Cerity Partners LLC now owns 40,426 shares of the company's stock worth $6,792,000 after buying an additional 5,880 shares during the period. Finally, Nebula Research & Development LLC grew its position in shares of Cardinal Health by 34.4% during the 2nd quarter. Nebula Research & Development LLC now owns 10,334 shares of the company's stock worth $1,736,000 after buying an additional 2,646 shares during the period. Institutional investors own 87.17% of the company's stock.

Cardinal Health Price Performance

CAH opened at $234.72 on Friday. The business's 50-day moving average price is $233.10 and its two-hundred day moving average price is $218.42. Cardinal Health, Inc. has a 1 year low of $145.87 and a 1 year high of $258.30. The company has a market capitalization of $54.59 billion, a price-to-earnings ratio of 32.46, a P/E/G ratio of 1.41 and a beta of 0.49.

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 for the quarter, topping the consensus estimate of $2.42 by $0.49. The company had revenue of $63.67 billion during the quarter, compared to analysts' expectations 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 period in the prior year, the firm earned $2.08 earnings per share. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. Sell-side analysts anticipate that Cardinal Health, Inc. will post 12.55 earnings per share for the current fiscal year.

Cardinal Health Dividend Announcement

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

Insider Activity

In other news, CEO Deborah Weitzman sold 7,354 shares of Cardinal Health 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 sale, the chief executive officer directly owned 77,901 shares in the company, valued at $18,341,790.45. This trade represents a 8.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jason M. Hollar sold 80,000 shares of the business's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $235.74, for a total transaction of $18,859,200.00. Following the completion of the sale, the chief executive officer directly owned 235,132 shares in the company, valued at approximately $55,430,017.68. This represents a 25.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 210,271 shares of company stock worth $49,626,657. 0.12% of the stock is currently owned by insiders.

Analysts Set New Price Targets

CAH has been the topic of a number of analyst reports. Evercore reiterated an "outperform" rating and issued a $270.00 price target on shares of Cardinal Health in a research report on Wednesday, August 12th. Barclays boosted their price objective on shares of Cardinal Health from $258.00 to $275.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Zacks Research lowered shares of Cardinal Health from a "strong-buy" rating to a "hold" rating in a report on Friday, June 12th. Morgan Stanley lifted their price target on shares of Cardinal Health from $255.00 to $265.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Finally, UBS Group boosted their price target on shares of Cardinal Health from $274.00 to $280.00 and gave the company a "buy" rating in a report on Wednesday, August 12th. Sixteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Cardinal Health has a consensus rating of "Moderate Buy" and an average price target 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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