Cardinal Health (CAH) Lifted to “Sell” at ValuEngine

ValuEngine upgraded shares of Cardinal Health (NYSE:CAH) from a strong sell rating to a sell rating in a research note issued to investors on Friday morning.

A number of other research firms also recently issued reports on CAH. Zacks Investment Research upgraded shares of Cardinal Health from a sell rating to a hold rating in a research report on Thursday, January 24th. Royal Bank of Canada set a $57.00 price target on shares of Cardinal Health and gave the stock a hold rating in a research note on Friday, November 9th. UBS Group started coverage on shares of Cardinal Health in a research note on Thursday, January 17th. They set a neutral rating and a $51.00 price target on the stock. Morgan Stanley increased their price target on shares of Cardinal Health from $40.00 to $50.00 and gave the stock an underweight rating in a research note on Monday, December 3rd. Finally, Jefferies Financial Group restated a hold rating and set a $61.00 price target on shares of Cardinal Health in a research note on Wednesday, November 14th. Three research analysts have rated the stock with a sell rating, eight have assigned a hold rating and one has issued a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $59.91.

CAH stock opened at $53.19 on Friday. Cardinal Health has a 12-month low of $42.17 and a 12-month high of $73.23. The company has a debt-to-equity ratio of 1.26, a current ratio of 1.05 and a quick ratio of 0.51. The company has a market capitalization of $15.70 billion, a price-to-earnings ratio of 10.64, a P/E/G ratio of 1.67 and a beta of 1.16.

Cardinal Health (NYSE:CAH) last released its earnings results on Thursday, February 7th. The company reported $1.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.09 by $0.20. Cardinal Health had a negative net margin of 0.03% and a positive return on equity of 24.01%. The company had revenue of $37.70 billion during the quarter, compared to the consensus estimate of $36.09 billion. During the same quarter in the prior year, the firm earned $1.31 EPS. The company’s revenue was up 7.1% compared to the same quarter last year. On average, research analysts expect that Cardinal Health will post 5.06 earnings per share for the current fiscal year.

Cardinal Health declared that its Board of Directors has approved a stock buyback program on Thursday, November 8th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 6.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

The firm also recently declared a quarterly dividend, which will be paid on Monday, April 15th. Stockholders of record on Monday, April 1st will be paid a dividend of $0.4763 per share. The ex-dividend date is Friday, March 29th. This represents a $1.91 annualized dividend and a dividend yield of 3.58%. Cardinal Health’s dividend payout ratio (DPR) is 38.20%.

Several institutional investors and hedge funds have recently made changes to their positions in CAH. Gemmer Asset Management LLC grew its stake in Cardinal Health by 172.4% in the 4th quarter. Gemmer Asset Management LLC now owns 553 shares of the company’s stock valued at $25,000 after buying an additional 350 shares during the last quarter. Transamerica Financial Advisors Inc. acquired a new position in Cardinal Health in the 4th quarter valued at $32,000. CNB Bank acquired a new position in Cardinal Health in the 4th quarter valued at $36,000. Financial Gravity Companies Inc. acquired a new position in Cardinal Health in the 4th quarter valued at $68,000. Finally, JNBA Financial Advisors acquired a new position in Cardinal Health in the 4th quarter valued at $78,000. Institutional investors own 90.75% of the company’s stock.

Cardinal Health Company Profile

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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Analyst Recommendations for Cardinal Health (NYSE:CAH)

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