Cardinal Health (CAH) Stock Rating Upgraded by Leerink Swann
Leerink Swann upgraded shares of Cardinal Health (NYSE:CAH) from a market perform rating to an outperform rating in a research report sent to investors on Tuesday, MarketBeat Ratings reports. The brokerage currently has $75.00 price target on the stock. Leerink Swann also issued estimates for Cardinal Health’s Q1 2019 earnings at $1.40 EPS, Q2 2019 earnings at $1.59 EPS, Q3 2019 earnings at $1.73 EPS, Q4 2019 earnings at $1.58 EPS, FY2019 earnings at $6.30 EPS and FY2020 earnings at $6.85 EPS.
A number of other brokerages also recently issued reports on CAH. Zacks Investment Research raised Cardinal Health from a hold rating to a buy rating and set a $84.00 price target on the stock in a research report on Monday, January 29th. Mizuho set a $73.00 price target on Cardinal Health and gave the stock a hold rating in a research report on Wednesday, January 24th. Robert W. Baird reissued a hold rating and set a $80.00 price target on shares of Cardinal Health in a research report on Wednesday, January 17th. TheStreet raised Cardinal Health from a c+ rating to a b- rating in a research report on Tuesday, March 13th. Finally, Bank of America assumed coverage on Cardinal Health in a research report on Tuesday, February 27th. They set an underperform rating and a $69.00 price target on the stock. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and five have assigned a buy rating to the company. Cardinal Health has a consensus rating of Hold and an average target price of $74.19.
Cardinal Health stock opened at $65.82 on Tuesday. Cardinal Health has a 12 month low of $54.66 and a 12 month high of $80.37. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.57 and a current ratio of 1.09. The company has a market capitalization of $20,005.92, a PE ratio of 12.19, a PEG ratio of 1.45 and a beta of 1.07.
Cardinal Health announced that its board has authorized a stock repurchase program on Thursday, February 8th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which was paid on Sunday, April 15th. Shareholders of record on Monday, April 2nd were paid a dividend of $0.4624 per share. This represents a $1.85 annualized dividend and a yield of 2.81%. The ex-dividend date was Thursday, March 29th. Cardinal Health’s payout ratio is presently 34.26%.
In other Cardinal Health news, CEO Jon L. Giacomin sold 7,995 shares of the company’s stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $68.78, for a total transaction of $549,896.10. Following the completion of the sale, the chief executive officer now directly owns 63,043 shares in the company, valued at $4,336,097.54. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Patricia Morrison sold 28,532 shares of the company’s stock in a transaction on Wednesday, February 14th. The stock was sold at an average price of $66.30, for a total value of $1,891,671.60. Following the sale, the insider now owns 36,157 shares of the company’s stock, valued at $2,397,209.10. The disclosure for this sale can be found here. 0.97% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. lifted its stake in shares of Cardinal Health by 15.0% in the 4th quarter. BlackRock Inc. now owns 24,845,043 shares of the company’s stock valued at $1,522,257,000 after acquiring an additional 3,235,076 shares during the last quarter. Macquarie Group Ltd. lifted its stake in shares of Cardinal Health by 5.1% in the 4th quarter. Macquarie Group Ltd. now owns 10,625,511 shares of the company’s stock valued at $651,092,000 after acquiring an additional 520,137 shares during the last quarter. American International Group Inc. lifted its stake in shares of Cardinal Health by 5,859.3% in the 4th quarter. American International Group Inc. now owns 7,969,384 shares of the company’s stock valued at $488,284,000 after acquiring an additional 7,835,654 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in shares of Cardinal Health by 31.3% in the 4th quarter. Bank of New York Mellon Corp now owns 5,049,224 shares of the company’s stock valued at $309,366,000 after acquiring an additional 1,203,015 shares during the last quarter. Finally, Vulcan Value Partners LLC lifted its stake in shares of Cardinal Health by 3.5% in the 4th quarter. Vulcan Value Partners LLC now owns 4,786,270 shares of the company’s stock valued at $293,255,000 after acquiring an additional 161,654 shares during the last quarter. Hedge funds and other institutional investors own 89.98% of the company’s stock.
About Cardinal Health
Cardinal Health, Inc operates as an integrated healthcare services and products company worldwide. The company's Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare, and consumer products to retailers, hospitals, and other healthcare providers.
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