Insider Selling: Cardinal Health (NYSE:CAH) CEO Sells 80,000 Shares

Key Points

• Cardinal Health CEO Jason Hollar sold 80,000 shares at an average price of $235.74, generating approximately $18.86 million. His remaining direct ownership fell 25.39% to 235,132 shares.
• Cardinal Health reported quarterly EPS of $2.91, beating analyst expectations of $2.42, while revenue rose 5.8% year over year to $63.67 billion, below the $65.15 billion consensus estimate.
• Wall Street remains generally bullish, with 16 Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $266.56, above the reported share price of $234.73.

Cardinal Health, Inc. (NYSE:CAH - Get Free Report) CEO Jason Hollar sold 80,000 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $235.74, for a total value 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. The trade was a 25.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Cardinal Health Price Performance

Shares of NYSE:CAH opened at $234.73 on Thursday. The firm has a market capitalization of $54.59 billion, a PE ratio of 32.47, a price-to-earnings-growth ratio of 1.26 and a beta of 0.49. Cardinal Health, Inc. has a 1 year low of $145.87 and a 1 year high of $258.30. The firm's 50-day moving average is $231.76 and its two-hundred day moving average is $217.68.

Cardinal Health (NYSE:CAH - Get Free Report) last issued its quarterly earnings results 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 for the quarter, compared to the consensus estimate 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 was up 5.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.08 EPS. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. Analysts expect that Cardinal Health, Inc. will post 12.54 EPS for the current fiscal year.

Cardinal Health Dividend Announcement

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

Institutional Investors Weigh In On Cardinal Health

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Cardinal Health in the second quarter valued at $6,293,115,000. Wellington Management Group LLP grew its stake in Cardinal Health by 247.5% in the 2nd quarter. Wellington Management Group LLP now owns 14,860,271 shares of the company's stock valued at $3,530,206,000 after acquiring an additional 10,584,119 shares during the last quarter. Norges Bank acquired a new position in Cardinal Health during the fourth quarter worth about $790,344,000. Bank of America Corp DE purchased a new stake in shares of Cardinal Health in the second quarter valued at about $689,066,000. Finally, Legal & General Group Plc acquired a new stake in shares of Cardinal Health in the second quarter valued at approximately $438,870,000. Institutional investors and hedge funds own 87.17% of the company's stock.

Wall Street Analyst Weigh In

CAH has been the subject of several recent research reports. UBS Group increased their target price on shares of Cardinal Health from $274.00 to $280.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Citigroup boosted their price target on shares of Cardinal Health from $265.00 to $280.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. TD Cowen increased their target price on Cardinal Health from $275.00 to $280.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. William Blair started coverage on Cardinal Health in a report on Tuesday, April 28th. They set an "outperform" rating on the stock. Finally, Evercore restated an "outperform" rating and set a $270.00 target price on shares of Cardinal Health in a research report on Wednesday, August 12th. Sixteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $266.56.

Cardinal Health Company Profile

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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