Cardinal Health, Inc. (NYSE:CAH) Downgraded by Zacks Investment Research
Cardinal Health, Inc. (NYSE:CAH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Cardinal Health ended fourth-quarter fiscal 2017 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. Over the past one year, the company 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.”
Several other brokerages have also recently commented on CAH. Vetr cut Cardinal Health from a “buy” rating to a “hold” rating and set a $77.92 target price on the stock. in a report on Thursday, June 1st. Cowen and Company decreased their target price on Cardinal Health from $89.00 to $82.00 and set a “market perform” rating on the stock in a report on Tuesday, April 25th. Jefferies Group LLC restated a “hold” rating and set a $77.00 target price on shares of Cardinal Health in a report on Thursday, July 27th. Evercore ISI increased their target price on Cardinal Health from $77.50 to $78.00 and gave the stock an “outperform” rating in a report on Tuesday, May 2nd. Finally, ValuEngine cut Cardinal Health from a “buy” rating to a “hold” rating in a report on Friday, June 2nd. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and four have given a buy rating to the company. Cardinal Health presently has an average rating of “Hold” and a consensus price target of $80.46.
Shares of Cardinal Health (CAH) opened at 69.05 on Monday. The company has a 50-day moving average of $77.38 and a 200 day moving average of $77.27. Cardinal Health has a 12-month low of $62.70 and a 12-month high of $84.90. The firm has a market cap of $21.82 billion, a P/E ratio of 17.13 and a beta of 0.80.
Cardinal Health (NYSE:CAH) last announced its earnings results on Wednesday, August 2nd. The company reported $1.31 EPS for the quarter, topping the consensus estimate of $1.24 by $0.07. The company had revenue of $32.97 billion for the quarter, compared to analysts’ expectations of $32.73 billion. Cardinal Health had a return on equity of 26.20% and a net margin of 0.99%. The business’s revenue for the quarter was up 5.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.14 earnings per share. Equities analysts predict that Cardinal Health will post $5.07 EPS for the current year.
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In other Cardinal Health news, CEO of Cardinal Health’s pharmaceutical segment Jon L. Giacomin sold 23,270 shares of the stock in a transaction dated Friday, May 12th. The stock was sold at an average price of $72.87, for a total value of $1,695,684.90. Following the transaction, the insider now owns 55,440 shares of the company’s stock, valued at $4,039,912.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.94% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in the stock. Advisory Services Network LLC bought a new position in Cardinal Health during the first quarter valued at $120,000. JFS Wealth Advisors LLC raised its position in Cardinal Health by 14.3% in the second quarter. JFS Wealth Advisors LLC now owns 1,949 shares of the company’s stock valued at $152,000 after buying an additional 244 shares during the last quarter. Quadrant Capital Group LLC raised its position in Cardinal Health by 6.3% in the first quarter. Quadrant Capital Group LLC now owns 1,972 shares of the company’s stock valued at $156,000 after buying an additional 116 shares during the last quarter. Dupont Capital Management Corp bought a new position in Cardinal Health during the second quarter valued at $164,000. Finally, First Personal Financial Services raised its position in Cardinal Health by 127.5% in the second quarter. First Personal Financial Services now owns 2,209 shares of the company’s stock valued at $172,000 after buying an additional 1,238 shares during the last quarter. 87.09% of the stock is currently 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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