Cardinal Health Inc. [CAH] is 9.41% higher this YTD. Is it still time to buy?

Cardinal Health Inc. [NYSE: CAH] gained 1.58% or 0.91 points to close at $58.60 with a heavy trading volume of 4148988 shares. The company report on July 21, 2021 that Distributors Announce Proposed Opioid Settlement Agreement.

AmerisourceBergen (NYSE: ABC), Cardinal Health (NYSE: CAH) and McKesson (NYSE: MCK) announced that they have negotiated a comprehensive proposed settlement agreement which, if all conditions are satisfied, would result in the settlement of a substantial majority of opioid lawsuits filed by state and local governmental entities.

While the companies strongly dispute the allegations made in these lawsuits, they believe the proposed settlement agreement and settlement process it establishes, which is outlined below, are important steps toward achieving broad resolution of governmental opioid claims and delivering meaningful relief to communities across the United States. The companies remain deeply concerned about the impact the opioid epidemic is having on individuals, families, and communities across the nation and are committed to being part of the solution.

It opened the trading session at $57.93, the shares rose to $58.62 and dropped to $57.66, the range by which the price of stock traded the whole day. The daily chart for CAH points out that the company has recorded 7.35% gains over the past six months. However, it is still -31.24% lower than its most recent low trading price.

If we look at the average trading volume of 2.29M shares, CAH reached to a volume of 4148988 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 $63.36 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 2.50. 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.

Robert W. Baird have made an estimate for Cardinal Health Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on May 10, 2021. The new note on the price target was released on January 08, 2021, representing the official price target for Cardinal Health Inc. stock. Previously, the target price had yet another raise to $57, while Barclays analysts kept a Overweight rating on CAH stock.

The Average True Range (ATR) for Cardinal Health Inc. is set at 1.19, with the Price to Sales ratio for CAH stock in the period of the last 12 months amounting to 0.11. The Price to Book ratio for the last quarter was 9.56, with the Price to Cash per share for the same quarter was set at 12.07. Price to Free Cash Flow for CAH in the course of the last twelve months was 18.17 with Quick ratio for the last quarter at 0.60.

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 2.68. With this latest performance, CAH shares gained by 3.39% in over the last four-week period, additionally plugging by 7.35% over the last 6 months – not to mention a rise of 4.66% 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 59.33, with the RSI for the last a single of trading hit 64.79, and the three-weeks RSI is set at 55.94 for Cardinal Health Inc. [CAH]. The present Moving Average for the last 50 days of trading for this stock 57.03, while it was recorded at 57.18 for the last single week of trading, and 55.39 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 0.60 and a Current Ratio set at 1.20.

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

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 6.83%.

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

There are presently around $14,394 million, or 87.20% of CAH stock, in the hands of institutional investors. The top three institutional holders of CAH stocks are: VANGUARD GROUP INC with ownership of 36,108,628, which is approximately 1.115% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 27,394,980 shares of the stock with an approximate value of $1.61 billion in CAH stocks shares; and STATE STREET CORP, currently with $1.02 billion in CAH stock with ownership of nearly -3.889% of the company’s market capitalization.

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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 394 institutional holders increased their position in Cardinal Health Inc. [NYSE:CAH] by around 16,395,613 shares. Additionally, 359 investors decreased positions by around 18,667,653 shares, while 125 investors held positions by with 210,563,599 shares. The mentioned changes placed institutional holdings at 245,626,865 shares, according to the latest SEC report filing. CAH stock had 96 new institutional investments in for a total of 2,090,939 shares, while 76 institutional investors sold positions of 2,205,584 shares during the same period.

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