Zacks Investment Research upgraded shares of Cardinal Health, Inc. (NYSE:CAH) from a sell rating to a hold rating in a research report report published on Wednesday.
According to Zacks, “Over the last year, Cardinal Health has underperformed the broader industry with respect to price. Increasing generic pricing pressure is a major headwind. Intensifying competition and customer concentration are other bottlenecks. A sluggish macroeconomic scenario and tough product pricing environment are likely to impede growth. Meanwhile, the company is banking on strategic buyouts, joint ventures and supply agreements to drive growth. A solid fiscal 2018 guidance instills our confidence in the stock. Also, Cardinal Health ended first-quarter on a solid note, courtesy of an encouraging performance at the Medical segment. Although, the Pharmaceutical segment witnessed strong growth in the Specialty business and gained a huge number of Pharmaceutical Distribution customers, profits at the segment were hurt by generic pharmaceutical pricing and the loss of a major Pharmaceutical Distribution customer.”
A number of other equities research analysts have also issued reports on CAH. Jefferies Group LLC cut their price objective on shares of Cardinal Health from $77.00 to $67.00 and set a hold rating for the company in a report on Tuesday, November 7th. BidaskClub lowered shares of Cardinal Health from a hold rating to a sell rating in a report on Friday, August 4th. Credit Suisse Group cut their price objective on shares of Cardinal Health from $87.00 to $81.00 and set an outperform rating for the company in a report on Thursday, August 3rd. UBS AG reaffirmed a neutral rating and set a $76.00 price objective (down from $79.00) on shares of Cardinal Health in a report on Wednesday, August 9th. Finally, Cowen and Company reaffirmed a market perform rating and set a $77.00 price objective (down from $82.00) on shares of Cardinal Health in a report on Thursday, August 3rd. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and five have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $74.81.
Shares of Cardinal Health (NYSE:CAH) traded down $2.01 on Wednesday, reaching $58.55. 8,061,600 shares of the company’s stock were exchanged, compared to its average volume of 3,498,619. The company has a debt-to-equity ratio of 1.35, a quick ratio of 0.80 and a current ratio of 1.06. Cardinal Health has a twelve month low of $57.54 and a twelve month high of $84.88. The stock has a market cap of $18,420.06, a price-to-earnings ratio of 11.11, a P/E/G ratio of 1.69 and a beta of 0.88.
Cardinal Health (NYSE:CAH) last announced its quarterly earnings data on Monday, November 6th. The company reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.09. Cardinal Health had a net margin of 0.84% and a return on equity of 25.24%. The business had revenue of $32.64 billion during the quarter, compared to analyst estimates of $33.48 billion. During the same period last year, the firm posted $1.24 EPS. The company’s revenue was up 1.9% on a year-over-year basis. equities research analysts expect that Cardinal Health will post 4.97 EPS for the current year.
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The firm also recently announced a quarterly dividend, which will be paid on Monday, January 15th. Investors of record on Tuesday, January 2nd will be issued a $0.4624 dividend. This represents a $1.85 dividend on an annualized basis and a dividend yield of 3.16%. The ex-dividend date is Friday, December 29th. Cardinal Health’s dividend payout ratio (DPR) is presently 53.78%.
Hedge funds and other institutional investors have recently bought and sold shares of the business. Bronfman E.L. Rothschild L.P. boosted its stake in Cardinal Health by 31.8% during the second quarter. Bronfman E.L. Rothschild L.P. now owns 1,583 shares of the company’s stock worth $123,000 after buying an additional 382 shares during the period. Advisory Services Network LLC boosted its stake in Cardinal Health by 18.4% during the second quarter. Advisory Services Network LLC now owns 1,739 shares of the company’s stock worth $136,000 after buying an additional 270 shares during the period. JFS Wealth Advisors LLC boosted its stake in Cardinal Health by 14.3% during the second quarter. JFS Wealth Advisors LLC now owns 1,949 shares of the company’s stock worth $152,000 after buying an additional 244 shares during the period. Dupont Capital Management Corp purchased a new position in Cardinal Health during the second quarter worth $164,000. Finally, First Personal Financial Services boosted its stake in Cardinal Health by 127.5% during the second quarter. First Personal Financial Services now owns 2,209 shares of the company’s stock worth $172,000 after buying an additional 1,238 shares during the period. 87.26% of the stock is 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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