Cardinal Health, Inc. (NYSE:CAH) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, November 8th.
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.”
Other analysts have also recently issued reports about the stock. Royal Bank Of Canada began coverage on shares of Cardinal Health in a research note on Tuesday, September 19th. They set a “sector perform” rating and a $72.00 price objective for the company. Jefferies Group LLC restated a “hold” rating and set a $77.00 price objective on shares of Cardinal Health in a research note on Thursday, July 27th. UBS AG reiterated a “neutral” rating and issued a $76.00 target price (down from $79.00) on shares of Cardinal Health in a research note on Wednesday, August 9th. Credit Suisse Group decreased their target price on shares of Cardinal Health from $87.00 to $81.00 and set an “outperform” rating for the company in a research note on Thursday, August 3rd. Finally, BidaskClub cut shares of Cardinal Health from a “sell” rating to a “strong sell” rating in a research note on Wednesday, August 16th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating and five have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $74.81.
Cardinal Health (CAH) traded up $1.00 during midday trading on Wednesday, reaching $56.00. 2,454,814 shares of the company’s stock were exchanged, compared to its average volume of 2,385,152. The company has a quick ratio of 0.52, a current ratio of 1.06 and a debt-to-equity ratio of 1.35. The stock has a market cap of $17,340.00, a P/E ratio of 10.91, a price-to-earnings-growth ratio of 1.66 and a beta of 0.88. Cardinal Health has a 1-year low of $54.66 and a 1-year high of $84.88.
Cardinal Health (NYSE:CAH) last released its earnings results on Monday, November 6th. The company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.09. The company had revenue of $32.64 billion for the quarter, compared to the consensus estimate of $33.48 billion. Cardinal Health had a net margin of 0.84% and a return on equity of 25.24%. Cardinal Health’s revenue was up 1.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.24 EPS. equities research analysts expect that Cardinal Health will post 4.97 earnings per share for the current year.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio lifted its position in Cardinal Health by 1.8% in the third quarter. Public Employees Retirement System of Ohio now owns 164,931 shares of the company’s stock valued at $11,037,000 after buying an additional 2,897 shares during the last quarter. Cambridge Financial Group Inc. lifted its position in Cardinal Health by 1.8% in the third quarter. Cambridge Financial Group Inc. now owns 72,686 shares of the company’s stock valued at $4,864,000 after buying an additional 1,251 shares during the last quarter. Coastline Trust Co lifted its position in Cardinal Health by 56.7% in the third quarter. Coastline Trust Co now owns 11,000 shares of the company’s stock valued at $736,000 after buying an additional 3,980 shares during the last quarter. Smith Shellnut Wilson LLC ADV acquired a new position in Cardinal Health in the third quarter valued at about $225,000. Finally, Iguana Healthcare Management LLC acquired a new position in Cardinal Health in the third quarter valued at about $2,008,000. 88.50% of the stock is owned by hedge funds and other 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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