why Cardinal Health Inc. [CAH] is a Good Choice for Investors After New Price Target of $58.50

Cardinal Health Inc. [NYSE: CAH] gained 2.67% on the last trading session, reaching $48.79 price per share at the time. The company report on September 25, 2020 that Cardinal Health to Webcast Discussion of First-Quarter Results for Fiscal Year 2021 on November 5.

Cardinal Health (NYSE: CAH) plans to release first-quarter financial results for its fiscal year 2021 on November 5 prior to the opening of trading on the New York Stock Exchange. The company will webcast a discussion of these results beginning at 8:30 a.m. Eastern.

To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required. Presentation slides and a webcast replay will be available until November 4, 2021.

Cardinal Health Inc. represents 293.00 million in outstanding shares, while the company has a total market value of $14.21 billion with the latest information. CAH stock price has been found in the range of $48.44 to $49.405.

If compared to the average trading volume of 2.20M shares, CAH reached a trading volume of 2176034 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Cardinal Health Inc. [CAH]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CAH shares is $58.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CAH stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Barclays have made an estimate for Cardinal Health Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on November 02, 2020. The new note on the price target was released on September 25, 2020, representing the official price target for Cardinal Health Inc. stock. On May 15, 2020, analysts increased their price target for CAH shares from 48 to 64.

The Average True Range (ATR) for Cardinal Health Inc. is set at 1.29, with the Price to Sales ratio for CAH stock in the period of the last 12 months amounting to 0.09. The Price to Book ratio for the last quarter was 7.99, with the Price to Cash per share for the same quarter was set at 9.51. Price to Free Cash Flow for CAH in the course of the last twelve months was 13.99 with Quick ratio for the last quarter at 0.50.

Trading performance analysis for CAH stock

Cardinal Health Inc. [CAH] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.76. With this latest performance, CAH shares gained by 3.48% in over the last four-week period, additionally plugging by 2.93% over the last 6 months – not to mention a drop of -5.70% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CAH stock in for the last two-week period is set at 54.90, with the RSI for the last a single of trading hit 59.59, and the three-weeks RSI is set at 52.48 for Cardinal Health Inc. [CAH]. The present Moving Average for the last 50 days of trading for this stock 48.04, while it was recorded at 46.73 for the last single week of trading, and 51.12 for the last 200 days.

Cardinal Health Inc. [CAH]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Cardinal Health Inc. [CAH] shares currently have an operating margin of +1.16 and a Gross Margin at +4.15. Cardinal Health Inc.’s Net Margin is presently recorded at -2.42.

Return on Total Capital for CAH is now 15.24, given the latest momentum, and Return on Invested Capital for the company is -32.42. Return on Equity for this stock declined to -91.07, with Return on Assets sitting at -9.04. When it comes to the capital structure of this company, Cardinal Health Inc. [CAH] has a Total Debt to Total Equity ratio set at 403.58. Additionally, CAH Total Debt to Total Capital is recorded at 80.14, with Total Debt to Total Assets ending up at 17.71. Long-Term Debt to Equity for the company is recorded at 397.21, with the Long-Term Debt to Total Capital now at 78.88.

Reflecting on the efficiency of the workforce at the company, Cardinal Health Inc. [CAH] managed to generate an average of -$77,000 per employee. Receivables Turnover for the company is 18.27 with a Total Asset Turnover recorded at a value of 3.74.Cardinal Health Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 1.10.

Cardinal Health Inc. [CAH]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Cardinal Health Inc. posted 1.27/share EPS, while the average EPS was predicted by analysts to be reported at 1.09/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 16.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CAH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cardinal Health Inc. go to 4.66%.

An analysis of insider ownership at Cardinal Health Inc. [CAH]

There are presently around $12,192 million, or 88.40% of CAH stock, in the hands of institutional investors. The top three institutional holders of CAH stocks are: VANGUARD GROUP INC with ownership of 36,206,679, which is approximately -1.081% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 25,291,132 shares of the stock with an approximate value of $1.23 billion in CAH stocks shares; and STATE STREET CORP, currently with $887.34 million in CAH stock with ownership of nearly -9.053% of the company’s market capitalization.

Positions in Cardinal Health Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 333 institutional holders increased their position in Cardinal Health Inc. [NYSE:CAH] by around 17,457,498 shares. Additionally, 382 investors decreased positions by around 20,239,140 shares, while 100 investors held positions by with 212,198,340 shares. The mentioned changes placed institutional holdings at 249,894,978 shares, according to the latest SEC report filing. CAH stock had 88 new institutional investments in for a total of 3,277,035 shares, while 65 institutional investors sold positions of 3,575,006 shares during the same period.

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