Cardinal Health (NYSE:CAH) Reaches New 12-Month High on Earnings Beat

Cardinal Health, Inc. (NYSE:CAH) shares reached a new 52-week high during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $119.13 and last traded at $115.78, with a volume of 924603 shares changing hands. The stock had previously closed at $108.52.

The company reported $1.88 EPS for the quarter, topping analysts’ consensus estimates of $1.64 by $0.24. The company had revenue of $52.28 billion for the quarter, compared to analysts’ expectations of $50.90 billion. Cardinal Health had a negative return on equity of 54.85% and a net margin of 0.37%. The business’s revenue for the quarter was down 4.3% compared to the same quarter last year. During the same period in the previous year, the business posted $1.73 EPS.

Cardinal Health Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 15th. Investors of record on Tuesday, October 1st were paid a $0.506 dividend. This represents a $2.02 dividend on an annualized basis and a yield of 1.74%. This is a positive change from Cardinal Health’s previous quarterly dividend of $0.51. The ex-dividend date was Tuesday, October 1st. Cardinal Health’s payout ratio is currently 58.38%.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on CAH shares. Citigroup dropped their price objective on Cardinal Health from $115.00 to $107.00 and set a “neutral” rating for the company in a research note on Friday, July 19th. Deutsche Bank Aktiengesellschaft lifted their price target on Cardinal Health from $115.00 to $119.00 and gave the company a “hold” rating in a research report on Friday, August 16th. Wells Fargo & Company upped their price objective on shares of Cardinal Health from $95.00 to $101.00 and gave the stock an “underweight” rating in a research report on Thursday, August 15th. UBS Group lifted their target price on shares of Cardinal Health from $125.00 to $134.00 and gave the company a “buy” rating in a research report on Tuesday, October 22nd. Finally, Argus increased their price target on shares of Cardinal Health from $115.00 to $125.00 and gave the stock a “buy” rating in a report on Wednesday, September 11th. One research analyst has rated the stock with a sell rating, four have given a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat, Cardinal Health currently has a consensus rating of “Moderate Buy” and a consensus price target of $120.18.

Insider Activity

In other Cardinal Health news, insider Jessica L. Mayer sold 17,896 shares of the company’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $106.48, for a total transaction of $1,905,566.08. Following the transaction, the insider now owns 94,529 shares in the company, valued at approximately $10,065,447.92. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, CEO Jason M. Hollar sold 46,455 shares of the business’s stock in a transaction dated Monday, August 19th. The shares were sold at an average price of $109.02, for a total transaction of $5,064,524.10. Following the sale, the chief executive officer now owns 197,636 shares of the company’s stock, valued at $21,546,276.72. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jessica L. Mayer sold 17,896 shares of the company’s stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $106.48, for a total transaction of $1,905,566.08. Following the completion of the sale, the insider now owns 94,529 shares in the company, valued at approximately $10,065,447.92. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 113,963 shares of company stock valued at $12,379,980. Corporate insiders own 0.09% of the company’s stock.

Hedge Funds Weigh In On Cardinal Health

Several institutional investors and hedge funds have recently modified their holdings of the stock. Mitsubishi UFJ Trust & Banking Corp boosted its position in shares of Cardinal Health by 101.1% during the first quarter. Mitsubishi UFJ Trust & Banking Corp now owns 321,558 shares of the company’s stock valued at $36,010,000 after buying an additional 161,656 shares during the last quarter. State Board of Administration of Florida Retirement System boosted its holdings in shares of Cardinal Health by 5.2% during the 1st quarter. State Board of Administration of Florida Retirement System now owns 314,213 shares of the company’s stock valued at $35,160,000 after acquiring an additional 15,663 shares during the last quarter. Alpha Cubed Investments LLC bought a new stake in shares of Cardinal Health in the third quarter worth approximately $371,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. raised its holdings in shares of Cardinal Health by 1.7% during the first quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 393,350 shares of the company’s stock valued at $44,016,000 after purchasing an additional 6,752 shares during the last quarter. Finally, Bessemer Group Inc. lifted its position in Cardinal Health by 38.7% during the first quarter. Bessemer Group Inc. now owns 19,190 shares of the company’s stock valued at $2,148,000 after purchasing an additional 5,352 shares during the period. 87.17% of the stock is currently owned by institutional investors.

Cardinal Health Stock Up 7.0 %

The company has a market cap of $28.10 billion, a PE ratio of 33.56, a PEG ratio of 1.48 and a beta of 0.60. The company’s fifty day moving average is $111.75 and its 200-day moving average is $104.19.

About Cardinal Health

Cardinal Health, Inc operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home.