Zacks Investment Research cut shares of Cardinal Health (NYSE:CAH) from a buy rating to a hold rating in a research report report published on Tuesday.
According to Zacks, “Cardinal Health registered strong performance in the Medical segment. The Pharmaceutical segment also witnessed strong growth in the Specialty business and gained a large number of Pharmaceutical Distribution customers. Further, the company is banking on strategic buyouts, joint ventures and supply agreements to drive growth. A strong fiscal 2018 outlook buoys optimism. On the flip side, despite growth in business, profits at the Pharmaceutical segment were hurt by generic pharmaceutical pricing. Huge investments in Pharmaceutical IT platform and lackluster generics performance are likely to mar Cardinal Health’s operational efficiencies in the upcoming quarter. Intense competition and customer concentration are other bottlenecks. Recently, the company closed the divestiture of its Cardinal Health China distribution.Cardinal Health underperformed its industry in a year's time. “
Several other equities analysts have also issued reports on the company. Jefferies Group set a $72.00 target price on Cardinal Health and gave the company a hold rating in a research note on Friday, February 9th. Barclays started coverage on Cardinal Health in a research note on Thursday, March 8th. They set an equal weight rating and a $74.00 price target on the stock. ValuEngine lowered Cardinal Health from a buy rating to a hold rating in a research note on Sunday, December 31st. Royal Bank of Canada set a $83.00 price target on Cardinal Health and gave the stock a hold rating in a research note on Thursday, February 8th. Finally, Bank of America started coverage on Cardinal Health in a research note on Tuesday, February 27th. They set an underperform rating and a $69.00 price target on the stock. Three research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and four have issued a buy rating to the company. The company has a consensus rating of Hold and an average target price of $74.13.
CAH opened at $62.07 on Tuesday. Cardinal Health has a 1 year low of $54.66 and a 1 year high of $80.37. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.57 and a current ratio of 1.09. The stock has a market capitalization of $20,106.63, a price-to-earnings ratio of 11.49, a P/E/G ratio of 1.46 and a beta of 1.07.
Cardinal Health (NYSE:CAH) last posted its earnings results on Thursday, February 8th. The company reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.14 by $0.17. Cardinal Health had a return on equity of 24.81% and a net margin of 1.37%. The company had revenue of $35.19 billion for the quarter, compared to analyst estimates of $34.63 billion. During the same quarter in the previous year, the firm earned $1.34 earnings per share. The firm’s quarterly revenue was up 6.1% compared to the same quarter last year. sell-side analysts predict that Cardinal Health will post 5.41 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Sunday, April 15th. Investors of record on Monday, April 2nd were given a $0.4624 dividend. The ex-dividend date was Thursday, March 29th. This represents a $1.85 dividend on an annualized basis and a yield of 2.98%. Cardinal Health’s dividend payout ratio is currently 34.26%.
Cardinal Health announced that its Board of Directors has approved a share buyback plan on Thursday, February 8th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
In related news, CEO Michael C. Kaufmann sold 18,586 shares of the company’s stock in a transaction that occurred on Monday, January 22nd. The stock was sold at an average price of $73.90, for a total value of $1,373,505.40. Following the sale, the chief executive officer now owns 211,849 shares in the company, valued at $15,655,641.10. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Jon L. Giacomin sold 7,995 shares of the company’s stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $68.78, for a total value of $549,896.10. Following the completion of the sale, the chief executive officer now owns 63,043 shares in the company, valued at approximately $4,336,097.54. The disclosure for this sale can be found here. In the last quarter, insiders sold 55,113 shares of company stock worth $3,815,073. 0.97% of the stock is owned by insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Steward Partners Investment Advisory LLC purchased a new stake in Cardinal Health in the third quarter valued at approximately $102,000. Ffcm LLC purchased a new stake in Cardinal Health in the fourth quarter valued at approximately $105,000. JNBA Financial Advisors boosted its position in Cardinal Health by 615.4% in the fourth quarter. JNBA Financial Advisors now owns 1,860 shares of the company’s stock valued at $114,000 after buying an additional 1,600 shares during the last quarter. Cerebellum GP LLC purchased a new stake in Cardinal Health in the fourth quarter valued at approximately $129,000. Finally, James Hambro & Partners purchased a new stake in Cardinal Health in the fourth quarter valued at approximately $138,000. Hedge funds and other institutional investors own 90.02% of the company’s stock.
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About Cardinal Health
Cardinal Health, Inc operates as an integrated healthcare services and products company worldwide. The company's Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare, and consumer products to retailers, hospitals, and other healthcare providers.
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