Cardinal Health, Inc. (NYSE:CAH) Stock Rated “Moderate Buy” by Wall Street Brokerages

Shares of Cardinal Health, Inc. (NYSE:CAH) have received a consensus recommendation of “Moderate Buy” from the nineteen analysts that are presently covering the stock, Marketbeat reports. Three analysts have rated the stock with a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $272.50.

Several research firms have issued reports on CAH. TD Cowen boosted their price target on Cardinal Health from $275.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, August 13th. JPMorgan Chase & Co. raised their price objective on Cardinal Health from $215.00 to $260.00 and gave the stock a “neutral” rating in a research note on Thursday, August 13th. Mizuho set a $290.00 price objective on Cardinal Health in a research report on Thursday. UBS Group boosted their price objective on Cardinal Health from $280.00 to $295.00 and gave the company a “buy” rating in a research note on Friday, October 16th. Finally, Wells Fargo & Company increased their target price on shares of Cardinal Health from $245.00 to $277.00 and gave the stock an “overweight” rating in a report on Wednesday, August 12th.

Cardinal Health News Roundup

Here are the key news stories impacting Cardinal Health this week:

• Positive Sentiment: Fiscal Q1 adjusted EPS was $3.26, ahead of analyst expectations, while revenue rose 5% year over year to $67.5 billion and also topped estimates. The company raised its FY2027 adjusted EPS guidance to $12.80–$13.00, above the FactSet estimate of $12.57. Cardinal Health reports first-quarter results and raises outlook
• Positive Sentiment: Management cited specialty growth, strong demand for generics and customer renewals as supports for the raised outlook. Cardinal Health also completed a $500 million share repurchase program during the quarter. Q1 earnings call highlights
• Positive Sentiment: Royal Bank of Canada raised its price target to $295 from $276 and reiterated an “outperform” rating, signaling continued analyst optimism. Royal Bank of Canada recommendations
• Negative Sentiment: Medical distribution faced pressure, including modest commodity and petroleum-related headwinds. The company’s results and raised forecast indicate these pressures were outweighed by strength in pharmaceuticals and specialty. Cardinal Health sees healthy demand despite commodity pressure

Insider Transactions at Cardinal Health

In related news, insider Jessica L. Mayer sold 29,436 shares of Cardinal Health stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $236.19, for a total transaction of $6,952,488.84. Following the transaction, the insider owned 33,076 shares in the company, valued at approximately $7,812,220.44. The trade was a 47.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michelle D. Greene sold 11,650 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $235.72, for a total transaction of $2,746,138.00. Following the completion of the transaction, the insider directly owned 10,330 shares of the company’s stock, valued at $2,434,987.60. This represents a 53.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 210,271 shares of company stock valued at $49,626,657. Company insiders own 0.12% of the company’s stock.

Institutional Investors Weigh In On Cardinal Health

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Ibex Wealth Advisors bought a new position in shares of Cardinal Health in the third quarter worth about $422,000. Valmark Advisers Inc. grew its position in shares of Cardinal Health by 19.8% during the third quarter. Valmark Advisers Inc. now owns 1,969 shares of the company’s stock worth $438,000 after purchasing an additional 326 shares in the last quarter. Allworth Financial LP grew its position in shares of Cardinal Health by 13.1% during the third quarter. Allworth Financial LP now owns 5,214 shares of the company’s stock worth $1,239,000 after purchasing an additional 603 shares in the last quarter. Fisher Asset Management LLC raised its stake in Cardinal Health by 64.8% during the 3rd quarter. Fisher Asset Management LLC now owns 33,955 shares of the company’s stock valued at $7,555,000 after purchasing an additional 13,345 shares during the period. Finally, Russell Investments Group Ltd. raised its stake in Cardinal Health by 18.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 558,898 shares of the company’s stock valued at $124,384,000 after purchasing an additional 88,192 shares during the period. 87.17% of the stock is owned by institutional investors.

Cardinal Health Trading Up 1.2%

CAH opened at $270.99 on Tuesday. The company has a market cap of $62.75 billion, a price-to-earnings ratio of 35.06, a PEG ratio of 1.63 and a beta of 0.53. The company’s 50 day moving average is $240.45 and its 200 day moving average is $223.55. Cardinal Health has a 12-month low of $180.45 and a 12-month high of $286.29.

Cardinal Health (NYSE:CAH) last announced its earnings results on Thursday, November 5th. The company reported $3.26 EPS for the quarter, beating analysts’ consensus estimates of $2.94 by $0.32. Cardinal Health had a net margin of 0.71% and a negative return on equity of 102.72%. The business had revenue of $67.51 billion during the quarter, compared to analysts’ expectations of $66.67 billion. During the same period in the prior year, the company earned $2.55 earnings per share. The firm’s revenue was up 5.5% on a year-over-year basis. As a group, analysts predict that Cardinal Health will post 12.86 EPS for the current fiscal year.

Cardinal Health Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were given a $0.5158 dividend. This represents a $2.06 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Thursday, October 1st. Cardinal Health’s dividend payout ratio is presently 28.49%.

About Cardinal Health

Cardinal Health is a healthcare services and products company that distributes pharmaceuticals and medical supplies. Its customers include pharmacies, hospitals, surgery centers, physician offices and other healthcare providers.

The company’s businesses include pharmaceutical distribution and specialty services, as well as the sourcing and distribution of medical and surgical products. Its offerings support areas such as specialty medications, medication management and supply-chain operations.

Cardinal Health traces its roots to a wholesale business founded in Ohio in 1971 and later expanded into pharmaceutical distribution.