Cardinal Health Inc. (CAH) Rating Increased to Hold at Zacks Investment Research
Cardinal Health Inc. (NYSE:CAH) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Cardinal Health ended first-quarter fiscal 2017 on a stable note. The company is banking on strategic buyouts (Lymphoseek), joint ventures and supply agreements to drive growth. Cardinal Health continues to believe that China presents significant growth opportunities. Furthermore, growth in new and existing customer count is likely to boost earnings. However, increasing generic pricing pressure remains a major concern for the coming quarters. Moreover, intensifying competition, customer concentration and higher leverage are the primary headwinds. Sluggish macroeconomic situations, competitive markets & a tough product pricing environment are also likely to dent growth.”
Other research analysts have also recently issued reports about the company. Deutsche Bank AG boosted their price target on Cardinal Health from $83.00 to $89.00 and gave the stock a “hold” rating in a report on Thursday, August 4th. Leerink Swann reissued an “outperform” rating and issued a $80.00 price target (down from $95.00) on shares of Cardinal Health in a report on Wednesday, November 2nd. Citigroup Inc. boosted their price target on Cardinal Health from $87.00 to $93.00 and gave the stock a “neutral” rating in a report on Wednesday, August 3rd. Robert W. Baird cut Cardinal Health from an “outperform” rating to a “neutral” rating and lowered their price target for the stock from $92.00 to $82.00 in a report on Friday, October 28th. Finally, Credit Suisse Group AG reissued a “buy” rating and issued a $97.00 price target on shares of Cardinal Health in a report on Tuesday, August 30th. Ten equities research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company’s stock. Cardinal Health currently has an average rating of “Buy” and an average target price of $91.62.
Shares of Cardinal Health (NYSE:CAH) opened at 71.39 on Monday. The stock has a market cap of $22.85 billion, a price-to-earnings ratio of 17.28 and a beta of 0.73. Cardinal Health has a 1-year low of $62.70 and a 1-year high of $91.23. The stock’s 50 day moving average price is $73.51 and its 200-day moving average price is $78.18.
Cardinal Health (NYSE:CAH) last posted its quarterly earnings data on Monday, October 31st. The company reported $1.24 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.21 by $0.03. Cardinal Health had a return on equity of 25.20% and a net margin of 1.08%. The firm had revenue of $32 billion for the quarter, compared to analysts’ expectations of $31.12 billion. During the same period in the previous year, the firm earned $1.38 EPS. The business’s quarterly revenue was up 14.2% on a year-over-year basis. On average, equities research analysts forecast that Cardinal Health will post $5.47 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Sunday, January 15th. Shareholders of record on Tuesday, January 3rd will be given a $0.4489 dividend. This represents a $1.80 annualized dividend and a yield of 2.52%. The ex-dividend date is Thursday, December 29th. Cardinal Health’s dividend payout ratio (DPR) is presently 43.58%.
In other Cardinal Health news, Chairman George S. Barrett sold 217,995 shares of the company’s stock in a transaction on Thursday, November 10th. The stock was sold at an average price of $71.29, for a total value of $15,540,863.55. Following the transaction, the chairman now owns 682,226 shares of the company’s stock, valued at approximately $48,635,891.54. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Stuart G. Laws sold 9,703 shares of the company’s stock in a transaction on Thursday, August 18th. The shares were sold at an average price of $82.45, for a total value of $800,012.35. Following the completion of the transaction, the senior vice president now directly owns 2,718 shares in the company, valued at approximately $224,099.10. The disclosure for this sale can be found here. 0.94% of the stock is owned by company insiders.
Institutional investors have recently made changes to their positions in the stock. Engineers Gate Manager LP boosted its stake in shares of Cardinal Health by 165.6% in the second quarter. Engineers Gate Manager LP now owns 67,927 shares of the company’s stock valued at $5,299,000 after buying an additional 42,355 shares in the last quarter. Foster & Motley Inc. purchased a new stake in shares of Cardinal Health during the second quarter valued at $505,000. 1832 Asset Management L.P. boosted its stake in shares of Cardinal Health by 57.3% in the second quarter. 1832 Asset Management L.P. now owns 427,017 shares of the company’s stock valued at $33,439,000 after buying an additional 155,512 shares in the last quarter. Royal Bank of Canada boosted its stake in shares of Cardinal Health by 2.8% in the first quarter. Royal Bank of Canada now owns 1,927,963 shares of the company’s stock valued at $157,997,000 after buying an additional 52,912 shares in the last quarter. Finally, Cincinnati Financial Corp boosted its stake in shares of Cardinal Health by 79.0% in the second quarter. Cincinnati Financial Corp now owns 498,000 shares of the company’s stock valued at $38,849,000 after buying an additional 219,800 shares in the last quarter. 88.19% 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 through two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products. This segment also operates nuclear pharmacies and cyclotron facilities; provides pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers, and provides services to healthcare companies.
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