Cardinal Health, Inc. (NYSE:CAH) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Cardinal Health, Inc. (NYSE:CAH) have earned an average recommendation of “Moderate Buy” from the eighteen brokerages that are currently covering the firm, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $251.7333.

Several research analysts have commented on CAH shares. JPMorgan Chase & Co. cut their price target on shares of Cardinal Health from $243.00 to $215.00 and set a “neutral” rating for the company in a report on Monday, May 4th. Mizuho increased their price objective on Cardinal Health from $235.00 to $240.00 and gave the stock an “outperform” rating in a research report on Thursday, July 23rd. Wall Street Zen raised Cardinal Health from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 4th. Evercore reduced their target price on Cardinal Health from $260.00 to $240.00 and set an “outperform” rating for the company in a research report on Wednesday, April 8th. Finally, Morgan Stanley upped their target price on Cardinal Health from $245.00 to $255.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 28th.

Cardinal Health Trading Up 1.4%

CAH stock opened at $230.18 on Friday. The firm has a 50 day moving average of $222.95 and a 200-day moving average of $215.30. The firm has a market capitalization of $53.91 billion, a P/E ratio of 35.20, a price-to-earnings-growth ratio of 1.12 and a beta of 0.49. Cardinal Health has a 12 month low of $137.75 and a 12 month high of $243.21.

Cardinal Health (NYSE:CAH) last posted its earnings results on Thursday, April 30th. The company reported $3.17 earnings per share for the quarter, topping analysts’ consensus estimates of $2.79 by $0.38. Cardinal Health had a net margin of 0.62% and a negative return on equity of 92.61%. The business had revenue of $60.94 billion for the quarter, compared to analyst estimates of $62.10 billion. During the same quarter in the prior year, the firm posted $2.35 EPS. Cardinal Health’s revenue was up 11.0% on a year-over-year basis. Sell-side analysts predict that Cardinal Health will post 10.77 EPS for the current year.

Cardinal Health Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were issued a dividend of $0.5158 per share. The ex-dividend date of this dividend was Wednesday, July 1st. This is a positive change from Cardinal Health’s previous quarterly dividend of $0.51. This represents a $2.06 annualized dividend and a dividend yield of 0.9%. Cardinal Health’s payout ratio is presently 31.50%.

Institutional Investors Weigh In On Cardinal Health

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. LWM Advisors Inc. increased its holdings in shares of Cardinal Health by 4.4% in the 2nd quarter. LWM Advisors Inc. now owns 1,028 shares of the company’s stock worth $244,000 after buying an additional 43 shares during the last quarter. Redhawk Wealth Advisors Inc. lifted its holdings in shares of Cardinal Health by 0.5% during the 4th quarter. Redhawk Wealth Advisors Inc. now owns 9,255 shares of the company’s stock worth $1,902,000 after acquiring an additional 48 shares during the last quarter. HF Advisory Group LLC lifted its holdings in shares of Cardinal Health by 0.9% during the 4th quarter. HF Advisory Group LLC now owns 5,227 shares of the company’s stock worth $1,074,000 after acquiring an additional 49 shares during the last quarter. Kathmere Capital Management LLC grew its position in Cardinal Health by 1.2% in the first quarter. Kathmere Capital Management LLC now owns 4,242 shares of the company’s stock worth $896,000 after acquiring an additional 49 shares in the last quarter. Finally, Hillsdale Investment Management Inc. grew its position in Cardinal Health by 0.9% in the fourth quarter. Hillsdale Investment Management Inc. now owns 5,760 shares of the company’s stock worth $1,184,000 after acquiring an additional 50 shares in the last quarter. 87.17% of the stock is owned by hedge funds and other institutional investors.

About Cardinal Health

Cardinal Health is a multinational healthcare services and products company headquartered in Dublin, Ohio. Tracing its roots to the early 1970s, the company has grown into a major provider of supply chain and distribution services for the healthcare sector. Cardinal Health operates across a range of service lines that support hospitals, health systems, pharmacies, physician offices and clinical laboratories.

The company’s core activities include the wholesale distribution of branded and generic pharmaceuticals, the supply and distribution of medical-surgical products, and the provision of logistics and inventory management solutions.