Investors Buy Cardinal Health Inc. (CAH) on Weakness
Investors bought shares of Cardinal Health Inc. (NYSE:CAH) on weakness during trading hours on Tuesday. $50.41 million flowed into the stock on the tick-up and $30.70 million flowed out of the stock on the tick-down, for a money net flow of $19.71 million into the stock. Of all equities tracked, Cardinal Health had the 30th highest net in-flow for the day. Cardinal Health traded down ($0.61) for the day and closed at $75.96
CAH has been the topic of several analyst reports. Zacks Investment Research cut shares of Cardinal Health from a “hold” rating to a “sell” rating in a research note on Friday, July 8th. Morgan Stanley reiterated a “hold” rating and set a $91.00 price objective on shares of Cardinal Health in a report on Monday, September 12th. FBR & Co reiterated a “buy” rating on shares of Cardinal Health in a report on Monday, June 20th. Bank of America Corp. reiterated a “neutral” rating and set a $83.00 price objective on shares of Cardinal Health in a report on Tuesday, June 7th. Finally, Leerink Swann reiterated an “outperform” rating and set a $92.00 price objective on shares of Cardinal Health in a report on Monday, June 20th. Eight research analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $94.76.
The firm has a 50 day moving average price of $80.92 and a 200-day moving average price of $80.63. The company has a market capitalization of $24.20 billion, a price-to-earnings ratio of 17.58 and a beta of 0.59.
Cardinal Health (NYSE:CAH) last released its earnings results on Tuesday, August 2nd. The company reported $1.14 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.13 by $0.01. Cardinal Health had a return on equity of 26.09% and a net margin of 1.17%. The company had revenue of $31.40 billion for the quarter, compared to analysts’ expectations of $31.06 billion. During the same quarter in the previous year, the business posted $1.00 EPS. The business’s revenue for the quarter was up 13.9% on a year-over-year basis. On average, analysts expect that Cardinal Health Inc. will post $5.61 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Saturday, October 15th. Shareholders of record on Monday, October 3rd will be paid a dividend of $0.4489 per share. The ex-dividend date is Thursday, September 29th. This represents a $1.80 annualized dividend and a yield of 2.36%. Cardinal Health’s dividend payout ratio (DPR) is presently 41.67%.
In other Cardinal Health news, CEO George S. Barrett sold 129,818 shares of Cardinal Health stock in a transaction dated Tuesday, August 9th. The stock was sold at an average price of $83.76, for a total transaction of $10,873,555.68. Following the transaction, the chief executive officer now owns 510,762 shares of the company’s stock, valued at approximately $42,781,425.12. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Donald M. Jr. Casey sold 59,180 shares of Cardinal Health stock in a transaction dated Wednesday, August 10th. The shares were sold at an average price of $83.59, for a total value of $4,946,856.20. Following the transaction, the chief executive officer now directly owns 164,803 shares in the company, valued at approximately $13,775,882.77. The disclosure for this sale can be found here. Company insiders own 0.97% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in CAH. Cohen & Steers Inc. raised its stake in shares of Cardinal Health by 36,541.4% in the second quarter. Cohen & Steers Inc. now owns 37,044,411 shares of the company’s stock valued at $980,195,000 after buying an additional 36,943,311 shares in the last quarter. Wellington Management Group LLP raised its stake in shares of Cardinal Health by 3.4% in the first quarter. Wellington Management Group LLP now owns 33,248,030 shares of the company’s stock valued at $2,724,677,000 after buying an additional 1,108,446 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its stake in shares of Cardinal Health by 114.4% in the second quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 12,520,106 shares of the company’s stock valued at $976,694,000 after buying an additional 6,681,725 shares in the last quarter. Macquarie Group Ltd. raised its stake in shares of Cardinal Health by 12.5% in the second quarter. Macquarie Group Ltd. now owns 8,990,816 shares of the company’s stock valued at $701,373,000 after buying an additional 995,820 shares in the last quarter. Finally, BlackRock Fund Advisors raised its stake in shares of Cardinal Health by 4.9% in the second quarter. BlackRock Fund Advisors now owns 4,770,431 shares of the company’s stock valued at $372,141,000 after buying an additional 222,666 shares in the last quarter. 86.16% of the stock is currently owned by institutional investors.
About Cardinal Health
Cardinal Health, Inc is a healthcare services and products company. The Company operates in two segments: Pharmaceutical and Medical. The Company also provides medical products to patients in the home. In the United States, the Company’s Pharmaceutical segment distributes branded and generic pharmaceutical, over-the-counter healthcare and consumer products through its Pharmaceutical Distribution division to retailers, hospitals and other healthcare providers.
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