Market Analysts see Cardinal Health Inc. [CAH] falling to $51. Time to buy?

Cardinal Health Inc. [NYSE: CAH] stock went on a downward path that fall over -0.88% on Friday, amounting to a one-week price decrease of less than -1.40%. The company report on August 23, 2021 that Cardinal Health Expands its DE&I Efforts with Comprehensive Talent Strategy.

Cardinal Health (NYSE: CAH) announced a comprehensive talent strategy to increase representation of diverse employees at the manager level and above by 2030. This commitment is specifically aimed at increasing the company’s global leadership representation of women, as well as African American and Black, Asian, Latinx, Indigenous and all other ethnically diverse groups in leadership roles in the U.S.

“Diversity, equity and inclusion are business imperatives,” said Mike Kaufmann, CEO of Cardinal Health. “When the voices at our table are diverse and reflect the communities we serve, the choices we pursue and the decisions and policies we make are more inclusive, creative, and best position our company for long-term sustainable growth. We believe that an employee population with diversity of talent, experiences and ideas drives more innovation – innovation that enables us to meet our customers’ changing needs and tomorrow.”.

Over the last 12 months, CAH stock rose by 8.82%. The one-year Cardinal Health Inc. stock forecast points to a potential upside of 8.6. The average equity rating for CAH stock is currently 2.90, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $15.48 billion, with 290.15 million shares outstanding and 289.65 million shares in the current float. Compared to the average trading volume of 2.42M shares, CAH stock reached a trading volume of 2330471 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $57.79 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 2.90. 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.

Deutsche Bank have made an estimate for Cardinal Health Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 06, 2021. While these analysts kept the previous recommendation, BofA Securities dropped their target price from $69 to $56. The new note on the price target was released on August 05, 2021, representing the official price target for Cardinal Health Inc. stock. Previously, the target price had yet another drop from $66 to $64, while Robert W. Baird kept a Neutral rating on CAH stock.

The Average True Range (ATR) for Cardinal Health Inc. is set at 1.14, with the Price to Sales ratio for CAH stock in the period of the last 12 months amounting to 0.10. The Price to Book ratio for the last quarter was 8.52, with the Price to Cash per share for the same quarter was set at 11.63. Price to Free Cash Flow for CAH in the course of the last twelve months was 11.49 with Quick ratio for the last quarter at 0.60.

CAH Stock Performance Analysis:

Cardinal Health Inc. [CAH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.40. With this latest performance, CAH shares gained by 2.19% in over the last four-week period, additionally sinking by -7.90% over the last 6 months – not to mention a rise of 8.82% 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 46.10, with the RSI for the last a single of trading hit 48.34, and the three-weeks RSI is set at 44.76 for Cardinal Health Inc. [CAH]. The present Moving Average for the last 50 days of trading for this stock 54.97, while it was recorded at 53.39 for the last single week of trading, and 56.07 for the last 200 days.

Insight into Cardinal Health Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Cardinal Health Inc. [CAH] shares currently have an operating margin of +1.12 and a Gross Margin at +3.91. Cardinal Health Inc.’s Net Margin is presently recorded at +0.38.

Return on Total Capital for CAH is now 20.74, given the latest momentum, and Return on Invested Capital for the company is 7.44. Return on Equity for this stock inclined to 34.13, with Return on Assets sitting at 1.43. When it comes to the capital structure of this company, Cardinal Health Inc. [CAH] has a Total Debt to Total Equity ratio set at 374.93. Additionally, CAH Total Debt to Total Capital is recorded at 78.94, with Total Debt to Total Assets ending up at 15.11. Long-Term Debt to Equity for the company is recorded at 320.44, with the Long-Term Debt to Total Capital now at 67.47.

Reflecting on the efficiency of the workforce at the company, Cardinal Health Inc. [CAH] managed to generate an average of $12,918 per employee. Receivables Turnover for the company is 18.69 with a Total Asset Turnover recorded at a value of 3.81.Cardinal Health Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 1.10.

CAH Stock EPS

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 6.57%.

Cardinal Health Inc. [CAH] Insider Position Details

There are presently around $13,073 million, or 87.30% of CAH stock, in the hands of institutional investors. The top three institutional holders of CAH stocks are: VANGUARD GROUP INC with ownership of 35,742,851, which is approximately -1.013% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 26,323,258 shares of the stock with an approximate value of $1.39 billion in CAH stocks shares; and STATE STREET CORP, currently with $912.93 million in CAH stock with ownership of nearly -1.181% 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 396 institutional holders increased their position in Cardinal Health Inc. [NYSE:CAH] by around 20,725,764 shares. Additionally, 344 investors decreased positions by around 18,755,806 shares, while 136 investors held positions by with 208,028,620 shares. The mentioned changes placed institutional holdings at 247,510,190 shares, according to the latest SEC report filing. CAH stock had 78 new institutional investments in for a total of 3,571,498 shares, while 81 institutional investors sold positions of 2,205,382 shares during the same period.

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