Cardinal Health (NYSE:CAH) Hits New 1-Year High - What's Next?

Key Points

• Cardinal Health shares reached a new 52-week high of $259.84 and last traded at $255.54, supported by a consensus “Moderate Buy” rating and an average analyst price target of $269.38.
• The company exceeded quarterly EPS expectations, reporting $2.91 versus the $2.42 consensus, while revenue rose 5.8% year over year to $63.67 billion, though it fell short of estimates.
• Cardinal Health declared a quarterly dividend of $0.5158 per share, equivalent to a $2.06 annualized payout and a 0.8% yield; meanwhile, insiders sold roughly $49.6 million of stock over the past 90 days.

Cardinal Health, Inc. (NYSE:CAH - Get Free Report)'s stock price reached a new 52-week high during trading on Friday. The stock traded as high as $259.84 and last traded at $255.54, with a volume of 96,761 shares trading hands. The stock had previously closed at $251.09.

Analyst Upgrades and Downgrades

CAH has been the subject of a number of recent research reports. Robert W. Baird upped their price objective on Cardinal Health from $251.00 to $274.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Royal Bank Of Canada started coverage on shares of Cardinal Health in a report on Wednesday, August 19th. They set an "outperform" rating and a $276.00 price target for the company. Leerink Partners set a $292.00 price target on shares of Cardinal Health in a research report on Tuesday, August 11th. Mizuho increased their price objective on shares of Cardinal Health from $250.00 to $280.00 and gave the stock an "outperform" rating in a report on Tuesday, October 20th. Finally, Morgan Stanley raised their price target on shares of Cardinal Health from $255.00 to $265.00 and gave the company an "overweight" rating in a research note on Wednesday, August 12th. Sixteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $269.38.

Cardinal Health Stock Up 1.2%

The firm has a market capitalization of $58.84 billion, a P/E ratio of 34.99, a PEG ratio of 1.47 and a beta of 0.50. The business's 50 day moving average is $237.31 and its two-hundred day moving average is $222.05.

Cardinal Health (NYSE:CAH - Get Free Report) last announced its earnings results 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. The firm had revenue of $63.67 billion during the quarter, compared to analyst estimates of $65.15 billion. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. Cardinal Health's revenue was up 5.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.08 EPS. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. As a group, equities analysts anticipate that Cardinal Health, Inc. will post 12.55 earnings per share for the current fiscal year.

Cardinal Health Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st were given a dividend of $0.5158 per share. The ex-dividend date was Thursday, October 1st. This represents a $2.06 annualized dividend and a dividend yield of 0.8%. Cardinal Health's dividend payout ratio (DPR) is 28.49%.

Insiders Place Their Bets

In related news, CEO Deborah Weitzman sold 7,354 shares of Cardinal Health stock in a transaction dated 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 directly owned 77,901 shares of the company's stock, valued at $18,341,790.45. The trade was a 8.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jason M. Hollar sold 44,529 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $236.18, for a total transaction of $10,516,859.22. Following the completion of the sale, the chief executive officer owned 190,603 shares in the company, valued at approximately $45,016,616.54. This trade represents a 18.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 210,271 shares of company stock valued at $49,626,657. 0.12% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Downshift Financial LLC lifted its holdings in Cardinal Health by 3,666.7% in the 3rd quarter. Downshift Financial LLC now owns 113 shares of the company's stock worth $25,000 after purchasing an additional 110 shares during the last quarter. Maryland Capital Advisors Inc. grew its holdings in Cardinal Health by 12,600.0% in the 3rd quarter. Maryland Capital Advisors Inc. now owns 127 shares of the company's stock valued at $28,000 after buying an additional 126 shares during the last quarter. Indiana Trust & Investment Management Co acquired a new stake in Cardinal Health in the 1st quarter valued at approximately $29,000. Investors Research Corp bought a new position in Cardinal Health in the 2nd quarter worth approximately $29,000. Finally, Allied Private Wealth LLC acquired a new position in shares of Cardinal Health during the second quarter worth approximately $30,000. Institutional investors own 87.17% of the company's stock.

About Cardinal Health

Cardinal Health, Inc is a healthcare services and products company that supports the distribution and delivery of pharmaceuticals, medical products and related services. The company serves hospitals, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and other healthcare providers.

Its Pharmaceutical and Specialty Solutions segment distributes branded, generic and specialty pharmaceuticals, as well as consumer health products, to pharmacies and healthcare institutions.

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