Zacks Investment Research downgraded shares of Cardinal Health (NYSE:CAH) from a hold rating to a sell rating in a research note released on Tuesday morning.
According to Zacks, “Cardinal Health underperformed its industry in a year's time. In recent times, profits in the company’s Pharmaceutical segment were hurt by generic pharmaceutical pricing. Dull generics performance is likely to mar Cardinal Health’s operational efficiencies. Intense competition and customer concentration are other bottlenecks. Recently, the company closed the divestiture of its Cardinal Health China distribution. On the brighter side, Cardinal Health’s Pharmaceutical segment registered strong growth in the Specialty business and gained a large number of Pharmaceutical Distribution customers in recent times. Further, the company exited its transition services agreement (TSA) with Medtronic recently. Cardinal Health also closed on a partnership with Clayton, Dubilier & Rice to accelerate growth of naviHealth.”
Several other equities research analysts have also issued reports on CAH. Morgan Stanley dropped their price target on Cardinal Health from $55.00 to $40.00 and set an underweight rating on the stock in a research report on Tuesday, July 3rd. Argus dropped their target price on Cardinal Health from $85.00 to $75.00 and set a buy rating on the stock in a research report on Monday, July 16th. Robert W. Baird reaffirmed a hold rating and issued a $51.00 target price on shares of Cardinal Health in a research report on Friday, July 20th. Royal Bank of Canada reaffirmed a hold rating and issued a $56.00 target price on shares of Cardinal Health in a research report on Tuesday, August 7th. Finally, Mizuho reaffirmed a hold rating and issued a $53.00 target price on shares of Cardinal Health in a research report on Sunday, August 12th. Four analysts have rated the stock with a sell rating, seven have issued a hold rating and two have given a buy rating to the company. The stock has a consensus rating of Hold and an average target price of $61.33.
CAH stock opened at $51.63 on Tuesday. The company has a current ratio of 1.07, a quick ratio of 0.53 and a debt-to-equity ratio of 1.32. The company has a market cap of $16.19 billion, a P/E ratio of 10.33, a PEG ratio of 1.69 and a beta of 1.02. Cardinal Health has a 12-month low of $48.14 and a 12-month high of $75.75.
Cardinal Health (NYSE:CAH) last posted its quarterly earnings results on Monday, August 6th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.93 by $0.08. The business had revenue of $35.35 billion for the quarter, compared to analyst estimates of $34.38 billion. Cardinal Health had a return on equity of 22.59% and a net margin of 0.19%. The business’s revenue was up 7.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.31 EPS. Sell-side analysts expect that Cardinal Health will post 5.03 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 15th. Shareholders of record on Monday, October 1st will be given a $0.4763 dividend. The ex-dividend date is Friday, September 28th. This is a positive change from Cardinal Health’s previous quarterly dividend of $0.48. This represents a $1.91 annualized dividend and a yield of 3.69%. Cardinal Health’s dividend payout ratio (DPR) is currently 38.20%.
In other Cardinal Health news, CEO Jon L. Giacomin sold 2,890 shares of the stock in a transaction on Monday, August 20th. The stock was sold at an average price of $51.95, for a total value of $150,135.50. Following the sale, the chief executive officer now directly owns 72,652 shares of the company’s stock, valued at $3,774,271.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.10% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of CAH. World Asset Management Inc grew its stake in shares of Cardinal Health by 4.2% in the third quarter. World Asset Management Inc now owns 26,721 shares of the company’s stock worth $1,443,000 after purchasing an additional 1,078 shares in the last quarter. Sigma Planning Corp grew its stake in shares of Cardinal Health by 17.0% in the second quarter. Sigma Planning Corp now owns 8,650 shares of the company’s stock worth $422,000 after purchasing an additional 1,256 shares in the last quarter. Ladenburg Thalmann Financial Services Inc. grew its stake in shares of Cardinal Health by 7.2% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 18,987 shares of the company’s stock worth $1,190,000 after purchasing an additional 1,272 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. grew its stake in shares of Cardinal Health by 23.2% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 6,826 shares of the company’s stock worth $333,000 after purchasing an additional 1,287 shares in the last quarter. Finally, Wrapmanager Inc. grew its stake in shares of Cardinal Health by 23.4% in the second quarter. Wrapmanager Inc. now owns 6,836 shares of the company’s stock worth $334,000 after purchasing an additional 1,297 shares in the last quarter. 87.90% of the stock is currently owned by hedge funds and other institutional investors.
About Cardinal Health
Cardinal Health, Inc operates as an integrated healthcare services and products company in the United States and internationally. It provides medical products and pharmaceuticals, and solutions that enhance supply chain efficiency for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices.
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